Rehab Offer From Potential Partner
What do you guys think about the initial numbers? I am going by the property soon and having the comps run as today. Just wanted to get some feedback. The offer comes from a pretty well known REA who works with a ton of investors here in town and might possibly serve as a mentor for me. This would be my first deal. I had found another one, but walked away after hearing not-so-good things about the wholesaler. Thanks in advance. Purchase Price: 120,000 ARV: 220,000 Repairs: 30,000 Hard $ Loan: 150,000 Closing Costs Required: ~6,500, which we'd split Holding Costs, Monthly: 2,000, which we'd split Figuring MAX 6 months holding costs, total out: 16,500 Sale Side, figuring a conservative $210k sales price: 210000 , which this could be higher 10500 commissions, since you're licensed we can again split the listing side of 2% 210 transfer taxes 3000 seller-paid closing costs, misc. plus buyer contrib. (est.) Gross 196290 HML 150000 HC/CC 16500 , which this could be lower Net 29790 Partner 1 14895 Partner 2 14895
Comments(0)
Just to be picky
You're HC/CC would be 18500 , not 16500 since it seems like you are trying to look at a worst case scenario.
Otherwise looks good.
Roger
Check you comps really close. How many days on market is important too. We had comps of $240,00 but only got $185,000 after a year. Is market in your area strong or weak. 6 months could be a long time at $2000 per month. Do you both have the income to cover this? How accurate are the rehab costs. Usually low and several items forgotten or overlooked or assumed to work and do not. I wish I had taken my own advice as I would be $15,000 less poor
Good LUCK and Thank You
Hope this helps some
Ted Jr