Sugar Land Town Home market

15 Replies | Houston, Texas

A seller has contacted me about his 3 br 2.5 ba town home in Sugar Land. This would be my first such deal and I'm open to hearing of anyone's personal experience in that market.

I've done my due diligence and it looks as if it's ARV is about $225K with what appears to be only cosmetic updates needed, such as granite counters in kitchen, sod in the backyard, new faucet fixtures all around. I would be wholeselling the deal for $170K.

Any thoughts, advice, etc? Thanks!

Originally posted by @Vijaianand Thirunageswaram :

@Steph Thomas Sugar land is surely a hot market. It should go fast. Why are you wholesaling it if it's only new updates and not big repairs?

Vijaianand, honestly I wanted to offer the seller the best price. But I agree it would be an easy rehab. It's a non issue now, however, as he has passed on my offer.

Yeah because it's hot market and he might know that he can get more than that if it just need touch ups. That's going to tough unless you want offer him bit more and show him that not putting in the market will save him time and money.

Save what deal?  There's no deal here.

She buys the thing, pays closing costs.  She then pays again when she sells.  Gotta figure at least $10-15K in upgrades/remodeling, even for the most basic 'cosmetic only' rehab.  This is assuming she is using all her own money, and not hard money or paying a PM lender.   Sorry, but I'm not seeing the profit margin here.

Sometimes the deal isn't there.  It simply does not make sense to sell a perfectly good house to an investor -- just advise the seller to make the model repairs themselves, if that is all that is required, and then list it with a realtor.  That is the end of the pool they swim in, not us.   If the seller isn't motivated, and the house isn't distressed, then there is no reason to just give away the equity that would be need to make it worth the time/money of any investor.

The whole idea of working with an investor is because the house won't sell through normal market channels, or it won't sell fast enough. 

What am I missing?

Originally posted by @Jorge De Jesus :

Perfect!! So if it’s 80-90% of arv including closing and assignment fees there is buyer for this deal I guarantee it because I’m seeing it in Katy

Yeah, me :) depending on where it is  

@ Jorge De Jesus are you telling me that you are wholesaling deals at 80%-90% of ARV?

I have heard that buy & hold deals are getting 80%, provided that includes the 'make ready' or the cost of the make ready is minimal (eg., just some paint and it is rent ready), but I have never confirmed that.