I get tons and tone of calls, e-mails, and letters from Wholesalers, Realtors and other investors looking to sell me deals. People are constantly asking me what my criteria is for buying properties so I decided to finally post it here.
So take a look
I Am Always Looking For Deals. Even if I weren’t looking for deals I would still be looking for deals. I would say 90% of my business is looking for deals. But I don’t just look at any deals, only the best of the best will do. Send me some GREAT deals and if it is good I will buy and if it is not good I simply won’t buy. Deal? Ok let’s move on.
Location, Location, Location: Is it in Nashville or within a 50 mile radius of Nashville? If not chances are it’s too far away for me.
Price Range: 0 to 200k.
My Property Characteristics: I mostly buy the following.
- At least 800 sqft
- Any number of bedrooms
- At least 1- 2 full bathrooms
- Will Look At Any Style
Amount of Rehab: I like easy to medium rehabs. Complete tear downs and full burn downs are fine too but you probably need to adjust the numbers for me.
MAO = ARV – 70% – Rehab Costs – Your Cost.
MAO: Maximum allowable offer equals the most I am willing to pay for the most part.
ARV: The CONSERVATIVE After Repair Value that the property will see for once fixed up. Not necessarily what the house will list for on the MLS or the highest property in that neighborhood. Really I would like to buy the cheapest or second cheapest house on the block.
60%: 65% of the ARV. If the ARV is $100,000 then 65% would be $65,000.
Rehab Costs: The Estimated Rehab Costs of a project. The usually come in three flavors Good, Bad, and Ugly.
Good Condition is minor cosmetics like paint and carpet.
Bad is paint carpet and new HVAC new roof.
Ugly is foundation issues and leaky roofs. Paint, Carpet, Roof, Central Heat and Air, and Exterior Paint or Siding.
Good = 10k, Bad 30k, Ugly 40k. *Remember these are just estimates and I will need to see the house to determine the actual values.
Once you find these gems send them to…
Good luck and happy hunting.
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This entry was posted on Thursday, September 3rd, 2015 at 4:57 pm. and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.