Hoping to get some feedback on my potential first wholesale deal.
I found a property through Redfin. After digging around, the last transaction goes from one Business to another and states - Quit Claim Deed. I have an appointment with the seller's agent to walk the property to see if in fact, it is a good deal and to confirm the condition of the house...which is in pretty rough shape.
I'm looking to hopefully wholesale this deal to a flipper. Property is in South Jersey, below are my numbers:
Listed: $55,000 ($40/sqft)
3 bd, 1.5 bth - Potential Rehab: $30k (will confirm tomorrow)
Comp: ARV $120,000 ($86/sqft)
4 bd, 1.5 bth - pre-flip price unknown
Exit Strategy: wholesale to a flipper (assignment $10k)
Offer: $30k. Highest if counter is $35k.
I'm worried about this Quit Claim Deed as I've read the definition on Google and still do not understand if this will jeopardize my deal.
Any feedback will be appreciated.
Disclaimer: This post does not represent an official position in support or opposed to wholesaling.
Quit claim deeds transfer property.
Full warranty deeds transfer the property with the assurance that there is not a lien against the property.
If you are never going to own the property, I don't think you need to be concerned with the quit claim at all. If you receive a warranty deed when you purchase a property, you are guaranteed the title is free and clear and don't need to be concerned with the previous quitclaims either. One situation where the quitclaim might be followed with the listing of a home in bad condition is that someone beat you to it and is wholetailing the property.