Wholetail or Wholesale this one?

Question

Is anyone doing "wholetail" deals or lipstick rehabs?  I have a deal that I locked up for a wholesale deal that could net me about $5-6k (i've done about a dozen of these).  After reviewing some of the houses that have sold in the neighborhood in this condition (livable as-is but needs $40k cosmetic for full rehab) I realized that I could probably sell this thing to a retail buyer for  $20-30k profit if I closed and just quickly listed it (before $5-6k realtor commission).

I have never done a deal like this before and have a feeling that there are some things I should know before I consider this option.  Is there anyone on BP doing these types of deals that could give me a some advice on what I need to know before jumping into this venture?  What would you do?

Edward Burns · Answer

Painting the walls and ceilings in a neutral color is probably a good idea.  As far as carpet, unless it is real bad, I would just clean and leave.  Most buyers are going to want to do their own decorating and would replace the carpet anyway.

Edward Burns · Answer

If by lipstick rehab, you mean cutting the grass, trimming bushes, painting I do not see a problem.  If on the other hand you are attempting to cover up defects in the property, I would question whether it was worth the potential damage to my reputation.

However, either way if you can sell direct to the potential home owner with light makeover for substantially more profit than to a rehabber, then sell to the home owner.