Your Ideal Birddog/assigner

Comments(7)

• 
  thevision91115th October, 2003

  From my experience....most rehabers are dealing with hard money. When I purchase an assignment I like to see the numbers that the hard money works. In other words, the purchase price, closing costs and rehab work must be equal to or less than 65% of the After Repair Value (ARV). All the rehabers that I know usually move their rehab properties to other investors for wholesale at 85% ARV. Knowing this info should help you find assignment options that will move quickly! Good Luck and I hope this helps.

• 
  davehays15th October, 2003

  Hey,
  
  Thanks for your response. So do you think it would be helpful for me to actually ask all the rehabbers I have lined up what their exit strategies usually are, so I have a picture of what I am getting into?
  
  What kind of investor is buying at 85%? Are they just trying to retail it and make 10% or so? Seems risky to me...
  
  Thanks! - DAve

• 
  davehays15th October, 2003

  I imagine what you meant to include was that you want to see the purchase price, rehab cost, closing cost AND holding costs in the form of hard money = 65% of ARV, true?

• 
  rcummings19th October, 2003

  Hey Dave
  
  A lot of investors that buy at 85% may do so just to have equity and they will rent out the property...remember, not all investors are flippers/wholesalers/rehabbers some are keepers....a lot buy for the purposes of rental. There are some that will do a sub2 deal with no equity in the property.
  
  Just ask your people what do they prefer...meaning do they want junkers, do they want pretty house. Do they want a equity position of 35% or 15%. Some may say that there could be no equity and they will buy.
  
  I have a form that I use when asking investors what their needs are. It helps me to know so when I find a property, I know who I'm going to call first.
  
  Hope that helped~

• 
  NewbieWife25th October, 2003

  My husband and I are getting into REI and thought we would start with "bird dogging". If you have a form of questions to ask potential advisors, would you be so kind to share?

• 
  reibyme25th October, 2003

  Cummings, could send me a copy of your form.

• 
  Sash25th October, 2003

  Hi Reibyme and NewbieWife
  
  Click on http://www.thecreativeinvestor.com/modules.php?name=Downloads&d_op=getit&lid=39 for a bird dog questionnaire.
  
  Good luck!
  
  Mike
  [addsig]