Wholesaling is very much alive.... I am scheduled to close 39 deals in the next 30 days!

So your making the extra 5% your profit or your negotiation limit with your fee already included? Then offer your buyer what was left over say turns out you were only able to get 67% minus repairs so you get 3% assignment fee and offer it to your investors at 70% less repairs? Sorry just confusing me can you break it down in numbers for me to see? I go with 70%xARV - repairs - my fee = ARV+my fee = price or ARV % I offer my buyers

If I understand...
Examples:

100,000 ARV *.7= 70,000 - 10,000 + 2,000 in fudge room in repairs = 58,000 - 5000 assignment fee = 53,000 my MAO (maximum allowable offer)

If works out I offer my end buyer the deal at 58% of ARV

100,000 ARV *.65= 65,000 - 10,000 + 2,000 in fudge room in repairs = 53,000 - 5000 assignment fee = 48,000 my MAO

If works out I offer my end buyer the deal at 53% of ARV

OR do you still offer it at 58% and give yourself the extra 1-5k that wasn't negotiated out as part of your fee making profit of 10k and not 5k?? If it was your minimum offer amount then say they wouldn't go for 48k but would take 55k now your out that 5k wiggle room and 2k profit giving you still 58% but only 3k assignment fee I guess that isn't so bad and less guessing how much your first offer would be

The latter is a better deal with 5,000 in wiggle room or negotiating room for a minimum allowable offer and work up from this number is that what your doing if they don't bawk and throw it out the door. I guess I am still just trying to figure out.

Okay I need to clear something up it is bugging me...So lanemccaw or anyone else that can answer this would be super.

First off lanemccaw I <3 your method for finding ARV "Average the price per sqft and take 90% of it. That is how I get my ARV." Totally using that from now on.

Here is my problem I am having issues with:
"For repairs I estimate those on the high side as well. Figure out what it costs per square foot to rehab a property in your area. In my area its anywhere from $12/sqft (light rehab) to $20/sqft (heavy rehab)"

**How do I find the $/sqft (light rehab) to $/sqft (heavy rehab)? Now before you go into telling me $/sqft of paint, flooring, roofing, siding kind of stuff let me get a bit more detailed on my question.
**I am asking about like if the bathroom needs a new vanity with sink+hardware and toilet seat only, the rest in the bathroom is in good condition and the kitchen cabinets are solid but doors need updating, a new sink with faucet, new counter top, and has no appliances they took the range, fridge and dishwasher is damaged and outdated how does that get figured into a $/sqft
-I mean every house is different
Another house might need new cabinets in kitchen because they did a DIY install and tiled the counter top so both need replaced with professional job, bathroom needs minor updating with lighting and cabinet doors making the $/sqft a LOT different.

This is why I can't see putting things like that in a $/sqft for rehabing, yet I see a lot of people talking about doing that. Can someone explain how they are doing this?

You answered your own question. Every house is different! This is just another one of those blast out the offers, maybe the numbers will end up right or I can adjust later strategies. What if the property needs a water heater, furnace, roof, structural, drive way slabs and massive landscaping to bring some curb appeal? What if you put this deal out to one of your serious buyers at $20 a Sq. Ft. and it comes back at $30 a Sq. Ft.? ( he is mad, you look dumb) Or $10 a Sq. Ft.(he is happy, you look dumb) What do you think this buyer will think the next time you present him a deal? Jeez, there I go again.

Isn't this a thread about Carol doing multiple deals next month?

Merry Christmas!

Michael Mangham
MD Home Acquisitions LLC

lol your right. I couldn't agree more. I've been plugging away at the threads and google to learn more about this and I think I would rather not use this method $/sqft. I think if anything I would rather get a 2012 Craftsman Site License and use the experience I have learned already from the many books I have read to get out there and make real estimates. It might take longer at the start, but in the end I will have solid numbers. Michael your a grouch sometimes but man I love having someone solid to bounce ideas against thank you for being you! hahaha ^_^

Sorry straying there Carol and everyone else. Congratulations again on the sales!

Happy holidays everyone!

Throw mud and see what sticks.

I know what it costs per sqft in my area.

When I get a motivated seller lead, I schedule a time to go look at the property and estimate my repairs based on my findings, not what I guess needs done.

If it just needs paint and carpet and a good scrub down ($12/sqft)
If it needs just a new kitchen or a new bath or some new drywall ($15/sqft)
If it needs a new roof, wiring, bathroom, kitchen, living room, dining room,etc. ($20/aqft)
If the house is a dump and needs a total overhaul including foundation, wiring and plumbing issues. ($30/sqft)

I calculate my QUICK SELL ARV, Calculate my repairs based on my findings and never charge more than $5k assignment fee.

Then I used ARV x .65 - repairs -$5000 for me.

That is my offer price to the seller.

Once the seller accepts, I mark the deal up $5k and sell it the same day. Most of the time my repair estimate is higher than. The contractor estimate we have done during our inspection period.

Remember, I'm selling to Landlord style buyers, not rehabbers. For a rental all you have to do is "Knock the ugly off of it" it doesn't need to be in retail condition to be a rental.

We estimate our repairs at retail prices but the buyer only rehabs them at rental prices.

There is profit built in at every angle. (Low ARV, HIGH REPAIRS, low fee, low actual rehab.

Very well put. I wasn't saying that it was wrong to do by sq/ft. I just don't see the point. If I walk into a house and I can see it needs a handful of things that is what I estimate. I want to get to the point I can walk in and five minutes later walk out and put a number on paper without having to refer to anyone or any program. That kind of thing will take some time and experience. I know everyone's area is different I just have to learn mine. Maybe I might learn some reason to $/sqft so far I don't see the point. I am learning a lot from everyone. I like your idea of ARV less 10% for protection if I estimated the ARV to high or something I don't want to look like a fool to an end buyer. However, I don't think I would if I did my comps correctly with a CMA report so I might just do 5% instead. I also like ARV*(however much equity my buyer wants) it might be 35% equity for your .65 or 30% like my .70 I'm used too and just offer low work my way up.

Lets keep to topic now. I don't want to upset Carol (SORRY CAROL )

Congrats on your deals Carol, you are such an inspiration.

Sandra

You are the "Queen" !!

You two need to get a room...lol

Carol, we stole your thread! You can have it back now!

Rock and Roll in 2012!

Join us on our Skype conference calls on Monday nights PLEASE!

What an inspiration you have been for me since the first time I came to this site! And you still are!!!

Thanks for sharing your knowledge with us!
Valerie

What Skype calls are you referring to? I have been invited to several and I hope thing will slow down a bit in Jan to give me a chance to join in.

Can anyone join your Monday skype calls?

Andy Sager
DG's AndyS

Hi Carol,

Lane is referring to the Skype Conference calls on which Jay St.Hilaire and I were inviting you. We recived your email with your Skype ID as well. We are doing it from the past few months and are getting lot of great things going on. It would be really an honor for us to have you on our conference calls. Investors from almost all 52 states are joining us and doing the great things.

We have also added you to our group on Facebook i.e

https://www.facebook.com/#!/groups/CashFlowInvestmentClub/

Look forward for you to join us.

Sincerely,

Ali

"Jay and I are working to support Dean's mission of creating more and more millionaires "

I have been mad busy over the past 30 days as you can see but as soon as I close on all these deals things should slow down a bit for me. I will have more time to get involved. I close on my 5 unit tomorrow... yeeehaaa!!! I close 3 properties on Thursday then 18 on Friday, the rest close next month.

I feel like I am giving birth and at the pushing stage..lol I ain't stoppin till these babies are out

Hello Carol. Checked out your real wholesaling web site and followed your adventures on here as well. Am really looking forward to working with you if you get any properties from California.

Steve

Giving back, you're on a roll! Thank you.

Didn't know there were so many non-disclosure states! Like someone above said, trot down to your county's assessor's office (or online if available) to check out the sold prices.

I highly encourage you to get a real estate license in your state because it would be SO worth it to get access to the MLS and CMAs!

That's really awesome and exciting you'll be joining the group. Your story is the one that inspired me to take action and come to DG! Can't wait for some insight on automation, tech, etc. I can't see my desk for the stacks and stacks of
paperwork!!

Congrats on your package deals! I'm pushing and will be "giving birth" to some deals of my own soon in 2012! Lol!! I promise, it's just around the corner and can't wait!

Like many other have said you are an inspiration. I am working toward a similar goal. Thank you so MUCH!!!! Happy New Year

Yes Carol I'm on the Skype calls also, looking forward to talking to you, and getting new ideas on how to find motivated sellers, Thats been my biggest roadblock finding motivated sellers. Was out yesterday placing new bandit signs, I need a motivated seller to call instead of all the retail, deal kicking tire wanting to know whats it a about callers. Where's all the motivated sellers at, there got that out of my system. Want to start doing direct mailing after the first of the year also......John H.

Hey Carol when are going to team up!!!!!!!!!Your awesome!!!!!!!!, Jim

Woops, looks like we have a spammer on our hands here... Mod's lets get that off this important thread.

If you see a spam message on here, just click "flag as offensive" > pick other > write "spam". It will be removed immediately. They tend to post on the most popular topics.

CAM wrote:

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Carol, great to have you on the Ca$hflow Investment Club call last night, you are in inspiration to all of us.

wow what i would give to learn along side of you carol and be trained by you on wholesaling. The queen of wholesaling! but then again that would be innapropriate for me to be along side of you learning since you never get out of your pj's! haha. Anyways I know you say everything you have learned you learned out of "barem". That gives me a good tip to go back and really study the wholesaling part of that book or did you learn from the whole book? If you can learn from I should be able to also. I would love to make my own schedule and work real estate on my schedule every day and make 30k a month. Anyways my biggest obstacle right now is making a buyers list, Thats what ive really stuggled with. I dont know what to say or how to say it when they call. Iam not letting this stop me though, its only a stepping stone to success.