Determining Offer by ARV

To determine if it's a good deal you simply add the repair costs to the purchase price and see how much equity you'll have in the home after your whole investment.

So the asking price is $35K plus your repair costs of $25K. That equals $60K total investment. Now Subtract that $60K total investment from your ARV of $90K and you will have $30K in equity (33% equity) after all is said and done.

I'd say that's a pretty good deal over all assuming your numbers are all accurate. Make sure you over estimate on the repair costs because repairs often end up costing a little more than you anticipate.

Good Luck

Jordan

Jordan

Awesome! Thank you for your help.

You really need to know your area & drive by renovated properties that are close by. The comps you get from the free sites like Zillow & Total View could be REO's that are in as-is condition. Your property is going to be like brand new. This doesn't mean go pick the highest renovated comp you find. Give yourself a safe ARV between atleast 3 renovated comps, that are similiar to your property.
ie: BD,BA,SQFT,etc.

Could be a good deal, but it partly depends on your exit strategy.

If you're going to assign/double-close it, need to add your fee to costs, then see if the deal makes sense. If you're going to fix and flip, need to add your closing + holding costs for appr 90 days.

If you're assigning to another investor who'll wholesale it, they generally need to clear 20% after their acquisition/repair costs and your fee, to have enough spread for their flip. Hope this helps. Good luck!

Liz Eastlake
The Eastlake Group, LLC

Absolutely! I see now that it depends on the strategy that I use. For now I would probably assign to another investor who has cash. I don't have any money to use at this time.

If you weren't one of the ones to purchase Edge 2010 w SFL, Matt Larson is a cool guy when it comes to stuff like this. I was fortunate enough to get Edge 2010 and he's a outstanding teacher. He taught this technique and more on the VIP session DVD.

http://www.deangraziosi.com/user/2369

If you need deal analyzing help use this Carol Stinson says it works great for comps and everything

http://www.totalviewrealestate.com/findit.php#social

ALSO DO THIS ONE TOO : http://www.eppraisal.com/

One thing I wanted to tell you is always go buy the appraisal price not the purchase price........ I am almost sure that is what Matt Larson said.

I hope everything falls through Great and Congratulations for taking ACTION

Also check this out for $1 from Dean Graziosi it is worth it and you get some pretty cool bonuses at the bottom of the page after you buy. Check it out! It'll help you. I bought this too. http://www.dgtext.com/

Daniel In New Mexico

Thanks,

I will try eppraisal, and I will look over the other stuff as well.

for the second url, it looks like just the anchor for Social networking? Was that the intended section you wanted me to check out for deal analyzing?

http://www.totalviewrealestate.com/userguide.php

Also if Total View doesn't provide you with you want go to eppraisal and I wanted to give you one more thing from Matt Larson. Use this if you need a proof of funds letter.

http://www.coastal-funding.com/pof.html

Go with it and stay determined!

Daniel

Okay, yeah I use total view to get my estimates.

Thanks for the second URL.