valuing investment property: Buying a Property We Expect to Sell to Another Investor - 01/17/11 01:14 AM
Buying a Property We Expect to Sell to Another Investor
My last couple of posts have concerned valuing property for both ‘buy and hold' and to ‘flip' to a retail purchaser.  Sometimes we have the opportunity to buy a property we can sell to another investor, or ‘wholesale'.
Our current formula for this transaction is simple and straight forward:
ARV (After Repaired Value) X  .65 - $12,000 - Cost to Repair = MAO (Maximum Allowable Offer)
We aim for a $12,000 profit on a wholesale purchase.  This is an arbitrary figure and a goal number.  Obviously a quick transaction may yield less … (3 comments)

 
Chris McAllister (Real Estate II)

Chris McAllister

Springfield, OH

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Real Estate II

Address: 14 East Main Street, Springfield, OH, 45502

Office: 937(390) 371-5401

Fax: (937) 390-0112



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