Neighbor wants to sell

2 Replies

Have a neighbor who's selling, and heard that I was interested in real estate investing.  Here in L.A., there's no way to get the deal to work out as a rental or a flip without a huge price concession -- something they're not likely to accept.  Property needs some minor work -- probably about 5-10K.  It comps out at about 410k.  It's a detached condo.

Is there an opportunity to add value for my neighbors and make some money?  Was thinking about wholesaling it, but I've never tried that before.

No, because like you said unless there is a significant price discount nobody would want it as an investment, your neighbor will get top dollar if they do the repairs themselves and list it on MLS. You can't really wholesale something that is turn key or close to it.

I get that.  In this case, I was thinking of it more in terms of functioning as a real estate agent, but without the license, which is kind of what wholesaling looks like.  They've already bought another house a couple of hundred miles away that they're in the process of moving into.  Once they're done, they'll sell.  I could serve as a trusted local resource for them, doing what I can to find the right buyer, and earning a small markup from a wholesale price to retail.  I've been licensed in the past, and have been working in lending for years.

But ultimately, I think you're right.  They're probably better off hiring a licensed agent who's better equipped to shepherd the deal through to closing.  It wouldn't be the first time an agent has worked for an out-of-town seller.