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The Avid Rehabber New Project

Posted By: John Boyer In: The Avid Rehabber
Date: Thu, Nov 9th 2017 11:50 am

The Avid Rehabber New Project

In this blog I would like to again discuss some of the steps to managing an acquisition through to the sale (exit strategy).  J and C Home Buyers are looking at a new project and would like to review the steps we take to determine if it fits our business model and will give us our best return on investment (ROI).

  1. Walk the property inside and out and measure for linear foot replacement items and square foot replacement and repair. This will include but not limited to: floor covering, cabinet/counter tops, wall and ceiling painting, bath and kitchen plumbing/ appliances, windows, roof and landscaping for curb appeal.
  2. Do your desk top analysis of purchase costs, repair costs and holding costs.
  3. Work with your contractor and the desk top analysis to come up with a mutual price to repair.
  4. Determine the after repair value (ARV).
  5. Make sure you have a solid exit stratedgy; wholesale, retail sale or buy to hold for passive income.
  6. Negotiate the purchase with the knowledge of the above and your projected ROI.

This is a very simplified list and as you may know a lot more will go into an acquisition, rehab and sale.  If we do this project I will follow up with all before and after pictures of the rehab and will share with you the bottom line profit/loss. We buy and sell homes:

843-314-4400

john@jandchomes.com

cindy@jandchomes.com