Process question
Okay, this site has been very helpful as I learn the basics. I have picked up a lot of tools and ideas that are starting to put the pieces together. One of the things that I still would like more information on is exactly how to best position a deal with a seller and buyer. I know that is kind of vague, so I'll expand.
Let's us say I find a property on MLS or wherever for 70K, but Zillow has it valued at 160K. Obviously, there is a reason it's been on the market for 6 months. There is a lot wrong with it. The investor/buyer would need to sink some significant money in the renovation. If I can get the house for 60K, what should I be looking at selling it to the buyer for? How do I evaluate how much profit I can make as a wholesaler? What if I can only get it at 70K? What would I sell it for? I know there is the worksheet, but before I get that in depth, I just want the basics on how to see the profit in a house.
Also, do I put any money down while I tie up the loose ends with the potential investor?
Finally, what does my contract look like with the seller since I am only holding the property for 30 days? What "outs" and "contingencies" do you typically put in yours? What other relationships do I have to have as a wholesaler? Title, insurance and so on....
Thanks. I unfortunately am a brainstormer personality, so the evaluation process it torture ;-)