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)