Updated about 8 years ago on . Most recent reply
Would you invest $325,000 cash to make $75,0000 in 90 days?
Hey BP, so I'm getting ready to put an offer in for a 4b 2/1 Bath 3800sq/ft house in Chester County PA. The house only needs cosmetic work, paint, carpet and new floors. The ARV of the home is $425,000. Houses similar are selling in less than 15 days up to 110 days. Would a cash buyer put this kind of capital up to earn $75,000 in less than 90 days? I'm going to be wholesaling this deal so I want to make sure the deal is right before I get it under contract. Let me know what you think! Thanks!
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So you're saying the purchase price is $325k, rehab is $25k, and ARV is $425k? So I don't know if I'm telling you something that you already know, but the profit on those numbers is more in the $30-35k range. You have closing costs buying and selling, plus holding costs. Not that it's a bad deal, but these are the things you'll have to consider when putting in an offer to wholesale to an investor.