Can I make this a deal?

1 Reply

Most of the leads I get come from motivated sellers looking to unload a house that needs a lot of work. In this case, I have a guy that wants to sell a house built in 2008 for $180k. Market value is in the $215k range. It would really be a paint and carpet rehab, if that. There is a tenant in place (since 2011) at $1750 per month. Rent could probably be bumped up a bit to $1850. Based on other cash sales in the neighborhood, I think if it were listed on the MLS it would be purchased by a landlord all cash for around $195k.

I need a little help trying to figure out if it would be possible to make a few thousand on this as a wholesale. My problem is my buyer's list is heavily weighted with full-time investors, and in order to make a profit I would need to find the people that want to buy a nice, new house in a good school district for around a 1% rent to purchase ratio (i.e. people with extra cash looking to put it into real estate for retirement purposes). Where do I find these people on short notice? I thought about connecting with another local wholesaler, but he would charge a $4k fee and I don't see much more profit than that in this deal.

So what do you think, can I make a small wholesale fee on this (and if so, how), or should I just pass and tell him he'd get more if he listed it on the MLS?

@Andrew Herrig  I'm not quite sure I know the answer to your question, but I'll leave you a comment so you get bumped and hopefully this will get picked up by someone who can help. 

Good luck!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here