I see an opportunity to wholesale, how to do it?

Question

I'm just getting started out in learning real estate and looking for some guidance. I don't necessarily want to focus on wholesaling, but I see an opportunity.

My friend has a house that he moved out of and is currently renting out to a family friend. He sees it as a headache and wants it gone as soon as he is able.

Now he says that he would take 80k just to get rid of it, but also last year he had a serious offer for 95k that he wasn't able to take at that time. He has done considerable work on the house, I dont know the details but it sounds like it can be bought at 80k and sold at 95k without any work.

I know that what he said is just talk at this point, and I need to investigate to fill in all the details. But how would you recommend going about turning this into a wholesale? Would you recommend doing so? - considering closing costs, etc? Any advice is appreciated. Thanks

Brian Engstrom · Answer

@ Jonathan Greene - my plan is not to get 95k for it, but to bring the 80k deal to somebody who could then resell it at 95k. (I do not have the credit or down payment for the purchase.) The reason I see him selling it for 80k to me is if I could bring him a deal privately without him having to hire a realtor. He had a bad experience with his last agent.

The other questions you've posted are questions that I have myself. Is there a source to go to for potential buyers/contacts of this deal? What information do I need to bring to them?

If I do find contacts, then I can just take a short contract to them off market, right?

Brian Engstrom · Answer

@Zana Blue - he wasnt able to take the offer because he was buying a new house to live in and that purchase didnt work out, so he decided to stay in this house and didnt take the offer.

My thought is that he wants to avoid the entire process of getting a realtor etc to make the sale, so I could privately bring him a buyer at 80k without any work for him. Then whoever I wholesale it to could sell at 95k

Jonathan Greene · Answer

This makes no sense. If you can get 95k for it, why can't he? Do you have a verified list of buyers? You can't just take a friend's property with a short contract and think you will sell it off-market with no contacts. Do you know what information you need to present to potential buyers? Just because a friend has a house to sell doesn't mean it's easy to wholesale, even if he said he could get more.

Christopher Petrillo · Answer

Hi @Brian Engstrom,

When you assign the contract you do not have to pay for closing costs, that is if your friend is ok with seeing how much you made. If you do a double close many title companies will let you pay for one close with the second. I would get a contractor out there to take a look at the property. This way you know if it needs work. Also, do you know how much the property is worth?

I see an opportunity to wholesale, how to do it?

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