First Wholesale deal Columbia sc- found property ?s on funding!

5 Replies

So I recently decided to not just talk but complete a wholesale deal. I found the property put a bid on it and won! (Yay) I got the property at 35000. 3bed 2 bath 1200 sq ft structurally sound in st Andrew Columbia sc area. The ARV is 85/90k. The property needs about 10k in Work. An investor can easily rent out this property. I’m stuck on the funding part. I used a system that you input the deal and private lenders call but haven’t been successful (they are charging ridiculous points & other upfront fees. What are the terms i should be looking for from a private lender? What resources have you used in the Columbia investor market for lenders. Thanks in advance

@Jazzmine Johnson , if you are planning to wholesale this, why can't you just assign the contract to the end buyer and not have to deal with lending?

A couple other questions I would have...  What are the points and fees amounting to that you are finding ridiculous?  If you are wholesaling this and are going to do a double close vs. an assignment, you have to look at the acquisition fees as the cost of doing business, and pad your wholesale fee accordingly to absorb them.

Are you sure about the $10K rehab number and the $85-90K ARV number? You will have a hard time staying under $10K with only doing paint, flooring and appliances. If you have to do any mechanical repair/replacement, windows, doors, hardware, etc., you will blow through $10K in a heartbeat. $90K ARV on a remodeled 3/2 with 1200 sft sounds like it is going to be in a rough area, correct? If so, your best bet is to sell this to a landlord vs. a flipper because rougher areas are a lot more difficult to flip in (and the flipper would likely be dealing with an FHA buyer on the back end because of the price point, which would mean more $ for repairs would need allocated due to the strictness of FHA appraisals)...

Thanks for the response @Owen D. ! The issue is being that it was from an auction site you have to purchase the property in order to reassign it so that double close is out of the question. It's a decent Older neighborhood. You are certainly correct I've been researching landlords/Investors in the area to discuss purchasing this property but I wanted to secure the lending in order for me to close. I would easily wholesale the property for 55-60k to give the landlord/investor a decent spread to improve and rent the property.