BiggerPockets

I have a motivated seller in Ca who wants to sign over two Condos to me for $60,000. This would be my first deal, if I can put it together. What would happen if I cannot find a buyer in time to assign the deal? Should I have a buyer in place before moving forward with this deal? Any help would be greatly appreciated. Thanks

Thanks for your response. I appreciate your help.
Here are the specifics:

CONDO #1 Market Value $300,000....she owes $199,000 ($100,000K in equity).
CONDO#2 Market Value $300,000....she owes $280,000 ($20,000 in equity)

Thanks

So you can get these two condos for $60,000 over what is owed on them?

I can tell you that even if you could get these condo's at what is owed, it would be a hard deal to wholesale both of these as a package deal

Condo #1 would be your best bet as a possibility, though we dont know the right kind of things to know to analyze this deal correctly, I will generalize things here for you to see.

Generally, when you want to assign a deal to an end buyer (investor) they are looking for properties at 70% or in this market, really even less than that, of the after repaired value, or ARV.

Condo #1, if the ARV is indeed $300,000, then 70% of that is $210,000. Let's say that the condo needs $5,000 (cosmetic) to get back in good shape. Then you could try to assign this deal to an end buyer for about $6,000.

Here's the math:
Condo - $199,000
+ repairs $5,000
+ your assignment fee $6,000
= 70% ARV $210,000

This is obviously dependent on the true ARV of the condo, and the amount of repairs needed.

Condo #2 worth $300,000, lets say it also needs $5,000 worth of repairs, plus you want to make, say $5,000 on your assignment fee, this would leave $10,000 of equity on a home worth $300,000. That is only 3.3% equity, and as stated above, most investors want 30% or more equity in a house to consider.

These numbers dont even take into consideration of the $60,000 on top that you might be offering if I am understanding you correctly.