I am new to real estate investing. I'd like to get some opinions on this potential deal.
Realtor friend contacted me about a 2 bed 1 bath property in Sacramento, CA (This is out of state for me) where the buyer has already express interest in accepting 50k for the property. The comps from the Realtor seem to indicate an ARV of 100-120k. Rehab is estimated at 15-20k.
If needed, I could temporarily live in Sacramento with family if I flipped this property however my investor friends said I should do a wholesale. I'm thinking if I did wholesale I could get around 10k out of the deal. Maybe at the very least twice that if I flipped it.
Would you recommend wholesaling or trying to flip it?
If end up wholeselling it give me a call at 916.826.1681 & I will take a look at it.
I budget 20% of the amount of money I put in as profit. In this case it would be at $14K on $70K. Since I don't do any of my own work I don't have to live where I am flipping. In the end I would rather have a house I can market to the public than one where I hope an investor will pay enough for me to make a profit.
If your out of state I would wholesale it. It is very easy to find investors to buy a property if you have it for the right price, and it will be a lot easier for you. I wholesale in the Sacramento Area and know hundreds of investors who would want that property and can pay cash right now. You don't have to worry about finding a buyer.
If you have any questions please feel free to give me a call I'd love to help you out.
@Hales C. If your ARV and repair cost are accurate I wouldn't turn it down.
Thanks for the feedback guys. Will keep you in mind. The owner of the property has notified the tenant to be out in two weeks. Currently I'm working with the Realtor to get it under contract... the Realtor hasn't worked with a wholesaler before but is interested in learning the process. I'm assuming wholesale deals are usually done without a Realtor? I'd be interested in knowing how common / uncommon that is. He seems to appreciate the fact the he will get a full 7% commission.
Hey Justin, I would also like to take a look at the property if you decide to go the wholesale route. My partner can help you and your realtor through the wholesale process as well. Feel free to message me if you need help.
By the way, I'll outbid Dennis!..... Kidding
@Matt Iacovazzi @Frank R. @Dennis Lanni
I just posted in the wholesaling thread about a bump in the road with the deal. Do you have any suggestions how I might resolve this issue with the Broker? Or how to get around it. Here's the thread...
Updated over 4 years ago
This post has been removed.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing