My first wholesale deal
Hello BiggerPockets,
I am just starting a wholesale business in my area, and have a deal i have yet to put under contract.
The deal is actually my brother in laws. Him and his partner are splitting up and are needing to sell their house quickly. i already determined the level of motivation, arv, comps, potential repairs, and have yet to offer him a price yet.
I pitched the idea that i can potentially close him out in cash by the end of the year and he is all for it. their original plan was to put it on market but they of course do not want to wait for the market.
The house is a 1996, 3/3 with ~2300 square feet. Doesnt need any major repairs(new roof, carpet). As is would be 330k. I comped houses with similar square feet and found theres enough sq feet for 2 additional bedrooms, potentially hitting the 352k range.
owned the property for a little over a year, with a 50k downpayment.
original loan = 333k
financed = 281k
current value = 340k (according to his loan officer)
Ive ran it through the usual 70-80% formulas but wanted some extra opinions/ weigh ins before i send him my offer. of course i dont want to insult him, being family and all, but he understands the convenience factor im providing.