Updated almost 12 years ago on . Most recent reply
Can I make this a deal?
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?