Need advise decission needed

[Jason Davis]

As I mentioned before I have under contract a 3 bed 1 bath home. I am paying $31k.

My plan was to fix and flip the property. Getting into flipping and doing the work is my ultimate goal. I want to build up to 4 to 5 per year.

This house is a good one to start with.

However after reading about wholesaling on BP. I posted an ad of CL listing the house for $55. Outlining teh repairs needed.

I had a guy go by amd look at the house. He has offered me $48.

I will negoatiate to get higher.

My questions pertain to(if i deside) to sell it to him. How to go back to my seller and work out the deal. My deal is done and they are working on closing.

How do I go back to my seller?
How do I handle closing so that I dont have to close on it first?
I would like my buyer to buy the house from my seller and I get a check for the differance, how do I do this?

Should I do this? If I want to be a rehabber why do this? The only reason I see is it will load my pocket to help pay for flipping another house

Ideas? Thoughts?

anything

Thanks
JD

I think the buyer is an end user not an investor

[Brian Levredge]

If you have the chance to make 13-15k in profit after expenses for what basically amounts to an assignment fee, I wouldn't screw around with trying to fix it up myself or negotiate your end buyer up any higher. You leave out what the ARV is on this so it's hard to tell how much of a deal your end buyer is getting. Assuming your end buyer has rehab/carry costs of 20k, and the house is worth 100k ARV, he'll be making the same net amount (roughly) that you are by flipping it to him, except you don't have the additional time or money invested.

Your scenario is why it's a good idea to use an LLC or Trust to purchase properties. You can assign ownership or beneficial interest in either one of those entities without running afoul of the assignment rules on the property unless there is language specifically prohibiting that as well. However, if I was your end buyer, I wouldn't be too thrilled with you taking such a big chunk of the equity for yourself.