Here is the acquisition and exit strategy for the first half of this "deal".
Listing agent and lender started at $250,000. Got it under contract 10 weeks later for $215,000
Submitted my offer cash, with no contingencies and would close when the lender is ready. Included a $5,000
cashiers check for earnest and proof of funds.
Funded this deal with private money, 12% no points.
CMA shows ARV at $400,000
Repair ests from 3 different licensed contractors show a $45,000 re hab.
Average time on market in this area is 120 days.
So here it is:
$45,000 Rehab 2 months
$15,600 Interest on loan (6 months)
$10,000 Over budget fund. (may or may not be needed)
Total investment and costs:
Quick sell price, so it moves quickly:
Hopefully we won't have to use any of the over budget fund and can get the commissions to 5% instead of 6%
That would increase our profit $13,799 and for every month we sell quicker that 6 it adds $2,600! But we ALWAYS figure as close to worse case as possible! So we do not count this money until we have completed the whole process and have left the closing table,check in hand. Then I will say I HAVE A DEAL, here is what I actually made. NO BLUE SKY HERE!!
On to the next!
MD Home Acquisitions LLC