Real Estate Investor · Oklahoma City, OK · Member since 2009 · 71 posts · 21 votes
Hi all, great forums here at BP. I have learned tons of stuff. I have my first wholesale deal working. Heres the numbers.
ARV: 60,000-70,000
Repairs: 5,000
My offer: 28,000
Its a 3B/1.5B and 975 Sq/Ft. (originally)
The owner turned the garage into an extra room which adds another 250 Sq/Ft to the house.
Foundation is good,new roof,new windows,needs new carpet,paint,hot water heater,cosmetics. A house sold recently in the same area for 62,000 that is similar. I'm waiting on the owner to see if she takes the offer.
Its in a good area of OKC.
Your thoughts...
If your numbers are accurate, this is a 'no-brainer' deal. What perplexes me is why someone (you??) would wholesale this rather than fix and flip or rent it themselves.
If your numbers are accurate, this is a 'no-brainer' deal. What perplexes me is why someone (you??) would wholesale this rather than fix and flip or rent it themselves.
Looks like a nice little deal. As a hard money lender my first thought is: Will $5k in fix add $30k in value to the property? From the description the property appears to be in good shape now, if it is a private seller you may just be getting that great of a day, if the property has been marketed on the MLS then the value may not be increased as much as indicated. Best of luck on the deal.
If your numbers are accurate, this is a 'no-brainer' deal. What perplexes me is why someone (you??) would wholesale this rather than fix and flip or rent it themselves.
It just may not be in his business model to do flip-and-fixes or rentals right now, especially if this is his very first real estate deal.
What is the year built? Are you certain that there are no FHA issues when it comes time to retail it? i.e. Electrical panel upgrades? HVAC system compliant and adequate? Roof repairs / replacement?
I am with the others, if you can buy it for $28K with REALLY only $5K in repairs, why don't you take title, do the work, and retail it?
Chris Martin: Chris G. is right, I would like to have more experience before I rent or flip.
Travis: The house has not been listed and it is a private seller.
Rob: It was built in 1960 and the utilities were on and we walked thru and checked all the major things,roof,heat and air,electrical. Everything looked good.
We will see if I get it under contract.
Thanks for the post...