Deal Review
I had someone reach out about a lending opportunity in OR. These were the stats she gave me:
Purchase Price: 385,000
Rehab: 17,000 -80,000
ARV: 550,000-570,000
Total Spread: 570,000 - 17,000 - 385,000 = 168,000
It looked good, but I had to decline...because there was no buffer, she's taking the high end of ARV and low end on the rehab. Costs to sell were not included, nor were there carrying costs for the life of the rehab.
Updated Numbers:
PP: 385,000
Rehab: 80,000
Buffer: 16,000
ARV: 550,000
Carrying Costs: 23,500
Cost to sell: 55,000
Total Spread: -9,500
This was a no go.
3
0 comments
Deal Review
powered by
skool.com/the-self-directed-network-7615
Education for passive real estate investors who want clarity and confidence in understanding deals, operators, and structures.
Suggested communities
Powered by