Auburn, GA · Member since 2019 · 22 posts · 8 votes
I have a client in my day job who wants to sell his home & it isn't listed yet. It has potential & most seems cosmetic but I'd have to dig deep. I want to start investing but obviously need to start somewhere. I hear about whole selling and how it can build up some cash till I'm ready to buy. However, I would rather learn from an experience investor, take no money and do most if not all the work to get this home sold or rented. What are my options?
Specialist · Purcellville, VA · Member since 2015 · 1k+ posts · 841 votes
7y
First, you have to make sure the numbers work. Is the owner motivated enough to sell at a discount? And by discount, I mean that you can expect a cash buyer to pay roughly 70% or ARV less the estimated repairs. And, if you over-estimate ARV, or under-estimate repairs, you're dooming the deal from the start.
Then you need to learn how to find cash buyers and how to do the closing.
I've spent a couple of months learning the process. I'm just starting to send out my marketing. If I had put a house under contract a couple of months ago, it would have been a disaster as I would have had no idea what to do.
If you decide to fix and flip or buy for a rental investment, someone else will have to pipe in on that. I'm not there yet.