Hello to all,
I have a question regarding a fellow wholesaler in my community who wants to team up and move this property off his hands. Here goes, this gentlemen told me he bought this duplex and he owns it free and clear but wants to wholesale it and the asking price is 89k. I recently did a walk through of the property and its a complete gut job inside and out. Everything from needing a new roof, to siding and having to completely renovate the walls flooring, kitchens and bedrooms. The property looks like its been vacant for years and lastly it needs about a good 60k in renovations to bring it up to living conditions. In my opinion I don't believe this is a good deal at all simply because of how much the seller is asking for versus how much needs to go into the property. My question to you all is should I just walk away from this situation while i still can? I've shot the property info to investors on my buyrers list and they've told me they wouldn't go into this project because its too much in renovations plus based on the numbers I gave them for trhe ARV theres not enough room for a flip. The ARV is 163K but the seller/wholesaler (of course) claims it can go for as much as 175-185k. I'm a conservative guy so I think those numbers he gave me are a bit fudged. My best bet is that this would be a good buy and hold property for the are it's in but only if the seller/wholesaler comes down on the price significantly. Thanks in advance for any and all advice.
If it doesn't stand on it's own, then walk away. But if you're stuck on the deal for whatever reason you can always counter with what you think is appropriate. Don't be afraid to ask for what you want -- that's how you get it.
Thanks Peter, I'm definitely not stuck with the property, it's more of me teaming up with another investor to help move the porperty but I haven't signed any paperwork.
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