What's this blog all about?Bruce W. Ford
Simple. I am a
rehab real estate investor, and I believe it benefits others to see how property is purchased, rehabed, and profited from. So, this blog will chronicle my most recent acquisition.
The house I am closing on today is located in Jacksonville, FL. To be clear, Jacksonville is like MANY other metro areas in the country as far as real estate prices, availability, and layout. Sure, the numbers will differ in more expensive areas, but investors largely work on percentage basis' so the exact numbers aren't critical.
I was first introduced to this property with a call from my wholesaler. From my writings, you've probably already gathered that I like using a wholesaler. I simply don't have the time to do what they do.
See my article on this topic. If you have full time to devote, then don't. On the other hand, I'm a part time investor and I like it that way. It gives me more time to play!
My wholesaler describes the property as small, only 750 square feet! Yikes! On the other hand, the property has a porch which can be enclosed bringing up the SF to about 1000. Okay, now I'm somewhat interested.
Here are my wholesaler's numbers...
I can buy it for $45,000
He claims it will appraise (as repaired value) for around $95,000
The rehab will take $8,000-$10,000 according to my wholesaler (who is also a rehabber).
I typically get my hard money for 70% of the as-repaired (or subject-to) appraisal so that $66,500.
Before I ride out to see the property, I see it's small, but there appears to be a good spread in the property. If all the numbers check out, that's a $50K spread.
I've rehabbed homes with $30-35K so I'm liking this prospect even before I go take a look.
Next...I go take a look!
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Bruce W. Ford is a Editor of
Rehab-Real-Estate.com and is an ACTIVE rehab real estate investor.
