"I am afraid of the joint venture quest , I do not want to be taken advantage of." That's the problem with trying to wholesale when you don't know what you are doing or how to do it. First of all, that's easily managed. Second of all, it seems you are after free consulting via this website. You want us collectively to hold your hand to coach you to a payday on this deal without paying us anything in return for the years and dollars we have spent learning the wholesaling business. You don't want "to be taken advantage of" but have no problem taking advantage of other people. Doesn't that seem a little one-sided to you?

If you have no cash reserves then doing a flip even if you could get 100% financing is very risky. Do the deals you can do and don't worry about the deals you can't do.

I'm also going to say, the fact you have it under contract and "don't know what to do with it" makes me nervous. You are tying up a seller's property. If this is a business for you, then treat it as such. You should have a plan...a written one. You have no liquidity and bad credit. Your plan should be how are you going to get to the point where those 2 things are no longer true...at least one of them. Your plan should also include how you will evaluate deals and determine an exit strategy, so you don't get caught in this "bright shiny object" space you are in now. Look...if the deal is that great, then you can lock in a higher wholesale fee, while still giving your investor buyer meat on the bone. Keep looking for great deals and banking those wholesale fees. If you continually source great deals to great buyers, you're likely to find an investor who is wiling to do a JV with you on a flip. Like Ned, we wholesale deals, when the timing isn't right for us. We have a slam dunk deal right now that we are wholesaling, partly because we have our capital tied up in a couple of other deals. It's killing us, because it would be both fun and profitable, but another deal will come.

Lombosco, May partner and I regularly get deals we would love to keep but if we are not in the cash position to keep them we sell them off. Building cash puts you in a better position for the next deal. Trust me, another great deal will come.

If I were in Jersey I would give you 10k for it... you might have something great on your hands, but here is the BIG question... Do you have it under contract? If not, then the question is moot. Otherwise, I would, in your situation, quick flip or wholesale it to another investor... You have approximately 56% ARV with purchase and rehab, even adding the $10,000 (which I think is unreasonable for a wholesaler to do... in reality I think closer to $5000 is reasonable even though many will agree with more and all the guru's basically teach wholesalers to gouge as much flesh out of it as they can...) you are still at about 59%, which is pretty awesome. I think that Jersey limits who can "wholesale" and that you probably need transactional funding to do an A-B B-C close (as well as a closing agent that is willing and knowledgeable about this practice). When you have the deal closed and your 10K in hand, the question then becomes: "what will you do with it?"... well since this will most likely be taxed as ordinary income (assuming 35% state and federal taxes to be paid) you will pay Uncle Sam and Godfather Christie 3500... leaving you $6500 ($5000 nets approx. $3250). Now I am not a lawyer, nor a CPA so I am neither legal nor tax advice... please seek professional help for these... I would open a business account and deposit all but $100, then I would take my wife to dinner to celebrate and in the morning... start finding another one to do... then repeat until I have enough in the bank to start fix & flipping properties on my own... Also, I would suggest credit repair services... there are some good ones that can help you rebuild and reestablish good credit. Best of luck in your endeavors! ~James

Here are your best options in my opinion: Option 1 is Wholesale. Option 2 -- If you can round up 3.5% of the purchase price and your credit is at least a 580 you could look into an FHA 203k loan. You will of course have to live in it in order to do this, but it would be a great way to start.

I'm wasn't being detailed purposely I just wanted to get a few opinions. I put the house under contract because my plan is to start off wholesaling. I need a nest like a few people said This house is 3 bed 3 bath The comps for a 3 bed 2 bath run from 300,000 thru 350,000 base off of 7 houses with in one mile these homes also sold with in the last 90 days The comps for a 4 bed 3 bath run from 348,000-389,000 The Niegborhood has roughly homes vauled in between 270,000 and 325,000 (mixed beds and baths) The house would have to be sold around 290,000-315,000 Being the location of the house if I fix and flipped the house I wouldn't want to over build so I can fix the house up for 42,000 and if I wanted to add additional features I can ... As in adding an addition, garage etc. But the purpose was to wholesale put I seen the potential profit after looking at this deal Being that I have bad credit I can't get a full 100% loan To fund the deal So my question was being that I'm a beginner with bad credit so I fix and flip or should I just lose out and wholesale the deal ... How ever I'm probably going to follow Ned's advice I am afraid of the joint venture quest , I do not want to be taken advantage of. @Hattie Dizmond Account Closed

I don't get your final question. it makes no sense.

Some investors with ads that state they are interested in helping people get to the next lever are self serving ads. BP was built on training new people in the process, not insulting people in forums. I started with nothing, You can ask me anything. If I have an answer I will happily give it to you.

Updated over 10 years ago on 02/10/2016. Most recent reply

60
Posts: 4
Votes

Lombosco DixonPoster

Rehabber
Woodbridge, NJ

Starting Out

Wholesale or keep ?

Lombosco DixonPoster

Rehabber
Woodbridge, NJ

Posted February 06, 2016 10:26

I have a house at 125,000 comps are above 300,000 Min for repairs are 42,000 I'm just starting out with bad credit and I can't find private or hard money lending what should I wholesale it for 10,000???

0 Votes

25 Replies

Jump to Last Reply

Wholesale or keep ?

Most Popular Reply