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Wholesaling

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Ricardo Acevedo
  • Rego Park, NY
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I need advice on a Wholesale deal!

Ricardo Acevedo
  • Rego Park, NY
Posted Mar 30 2015, 07:00

Hello, everyone. I have my focus on a property that seems to be a great deal, but I don't know what a buyer could possibly do with it..so I don't know whether I should have my lawyer make a seller's contract to begin the wholesale process. It is a colonial style home built in 1850 with 3 beds and 2 baths. The parking lot is paved and excessively large enough to park more than a few cars, 10 school buses can fit in the lot. The home was last sold for 272k in 2007 and the owner had no luck in selling the property starting in 2011 through 2014, until it was sold foreclosed back to the lender. The lender has been unable to sell the property and now wants only 100k for it. I contacted the seller and was given the key codes to look inside the property, so I did and took many pictures. I have a buyer in mind that is actively rehabbing homes and recently told me he has 50k in cash and can get loans for the rest on a great deal. The comps show this property is valued over 200k. Here lie the problems.. I am new to wholesaling. I do not know the rehab costs of the property even though I took a look inside because I am new, but I did take a lot of pictures, and could possibly revisit inside with a contractor for an estimate. I cannot calculate ARV x 70% - repair costs for my MAO because I don't know the repair costs and the property is so old I do not know if my comps research would reflect accurately for an After Repair Value. Theres also the chance of there being asbestos. I know that real estate is a game of opportunity, and the profit is made in the acquisition. I've focused on finding buyers and then sellers, but I've read that you should get a seller's contract on a property when it is a really great deal and the buyers will follow. If I do choose to do that then I could put exit clauses in the contract. What should I do?.. This will be my first wholesale and want to make the best moves right now. If the move is go on to another property then I will.

Thank You

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