I was wondering, I have found several properties in my area recently and they are listed for cheap. one example would be a home for 26k in the middle of town, decent part of town, older homes, but have comps in hood for brand spanking new homes built by branded local homebuilders. why do these properties stay on market? the new homes being built by these reputable builders are being bought for 60k and sold for 250k. I would really appreciate some advise on this! seems like a no dang brainer, buy for 26k wholesale it alone for 60k???
If the house is already on the market for 26K, then I don't see how you'd be able to wholesale it at all, let alone for 60K.
If the experienced ("branded") home builders won't touch them at 26K but are buying others at 60K, then I'd venture a guess that there is something significantly wrong with them.
Are these houses listed on the MLS?
I don't know the specifics of this deal but I can tell you that if you could make $34K on a $26K wholesale deal, this property wouldn't sit on the market. Good deals go fast.
yes, they are on MLS! funny story cause I asked my "realtor" to pull all listings 120 days or older and she sent me the list with a few new listings, this example happens to be one of them...new listing, don't expect it to last. I posted the question because I have a guy I am looking at properties with and when I found the listing I expected him to be giddy, however he wasn't?? I think I am on the right track, but I just don't know?? I live on the beach in Florida and these reputable home builders have been buying these old homes and tearing them down and doing a rebuild.
Mr Mike, is there anything I need to look at besides the obvious when looking at this property? I have researched the area. reputable companies have been buying up these cheap homes, they have paid up to 65k in some cases. this particular home is within a couple of miles from a recently bought property for 60k to sold within 5 months for 240k in the middle of crap for a lack of a better word. what are your thoughts??????
When you say the homes selling for $65k are within a couple miles, that's a red flag. When I pull comps, I'm looking in the same neighborhood. The comps I find are usually literally within rock throwing distance from the subject property.
It may be different out there in Florida, but a couple miles in AZ can mean the difference between a $50,000 home and a $5,000,000 home.
Drive the neighborhood yourself, and find homes that have sold within the past 90 days that are in the same neighborhood. That'll give you a better idea of value.
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