Been working on a rehab deal to get it going. Found it on a website and spoke with the owner. He is a very good and honest man and I told him that I can close the deal. The #s are:
Acquistion: 79K
Closing costs: 25K
Rehab: 100K
Borrowing $ Costs: 15K
Marketing Costs: 12K
After Repair Value: 300K
Selling Costs: 8K
Gross PreTax Profit: 61K (in 6months)
I am sure that I left out some costs but either way it would have been a decent deal. I found out due to issues with my other rehab deal in Graduate Hospital requiring more cash to get it done I will not be able to get this done. I want to beat myself up for this but I am more disappointed that I will not be able to close this deal from the seller who is becoming a friend.
What I am learning:
* Don't overpromise what you can or can't do. Just be open and tell them you will do your best to produce.
* Keep an eye for the big picture but keep the small detail in mind.
* Put as little non refundable downpay (I am losing $2K on this).
* Things do not go perfect in anything but it doesn't mean that you can't smile and just move on.
* Stay focused and keep working on making things happen. If I relax then things will be pushed out.
Right now the Graduate Hospital deal looks ok. We are lining up things. Today I found out that there may be a deal in Brooklyn NY in my home borough. I am excited about it as it can be really something new and beautiful. I love making new things. In the old comes something new.
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