ideas for strategy?

Question

Hey guys, have a question for the masses and any answer is helpful.  I came across a foreclosed property for sale at 79,900.  It's a 3 bed/1 bath approx. 1,768 sq. ft.  now the comps. suggest re-sale value of the home (after repairs if needed) to be anywhere from $ 130,00 and up.  I'm looking into wholesaling as a strategy here but if it doesn't need a lot of repairs and at this price maybe a quick flip is in order? Thanks guys.

MARK MONTANO · Answer

The market in the area is good for homes from 150,00 and less, mostly single family homes like this one.  There are good comps. to support that as well.  I have a few hard money lenders on hand although I haven't approached them yet with negotiations regarding this property.  I would imagine that my offer would have to be accepted first before I can look for any lenders/investors.  The issue I'm running into is getting into the home since it's a foreclosure.

Hattie Dizmond · Answer

You're numbers are fine to support either a wholesale or flip, depending on the repair costs involved.  The question, in my opinion, comes down to 2 things...

1.  What's you market like?  How long will you have to hold the property on a flip?  What's the demand for this type of property?  If the property doesn't sell, do you have a backup exit strategy?

2.  Do you have the finances or can you acquire the finances to take the deal down yourself?  If you need financing, will your rates & capital requirements still keep your numbers where they need to be?