WE BUY AT RETAIL LESS A
HOPEFUL REASONABLE PROFIT
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We have expanded our company into high risk investments and are now buying houses anywhere within the United States. Our offers are fair and reasonable. All we ask is to be allowed to hopefully earn 6% on the purchase price. So the seller does not attempt to inflate the value and the buyer does not attempt to deflate the value, we have you obtain two local appraisers to appraise the house and we average the values as set forth below: The below figures are for an example only: Appraisal number one $225,250 Appraisal number two $230,000 Total $455,250 ($455,250 divided by 2 equals $227,625 the value) The buyer and seller agree on where to close the sale. The closing costs run anywhere from $4,000 to $5,000 and sometimes higher and taxes are pro-rated. After closing, the house is put on the market again by the buyer (our company) at the appraised value. 1. Our Company lists the property for the appraised value, and when and if it sells, we earn a profit. 2. If the property sells at the appraised value of $227,625 (which in today's market is not often) we pay the realtor (in most cases 6% of the selling price) $13,657.50 and of course we again pay closing costs. 3. In today's market, we estimate it will take around a year or two to re-sell the house and with approximately 6% interest on the money we borrow to purchase, we will pay approximately $11,000 per year interest plus loan fees. 4. Adding together the approximate $9,000 in closing costs (buying and selling), the real estate commission of $13,657.50 and $11,000 in interest costs based on one year (not including loan fees) totals $33,657.50. 5. Subtracting $33,657,50 from the apprised value of $$227,625 leaves approximately $193,967.50. 6. 6% of $193,967.50 equals $11,638. We believe that our company is entitled to a minimum of the 6% for our time, the high financial risk, travel and other expenses and therefore we deduct the $11,638 from the $193,967.50 which leaves $182,329 being our purchase price. Our minimum purchase is $100,000 and our maximum purchase is $350,000. If you have any questions e-mail Allen G. Hutchens at aghez711@yahoo.com. |