I wanted to pick the BP community brain to see how would structure a deal.
I have seller with a FSBO. Vacant.
Asking for $60k
Monthly mortgage $1300
Wants $10k for immediate needs
Repairs will probably be about $15k. They replaced key things such as furnance, ac, roof. it was recently remodeled according to the seller but there is a couple things she is working on.
I'd like to make $7k on the whole fee (but flexible).
She is open to seller financing.
Also would you use a LLC or trust to wholesale the property to another inestor.
Thanks in advance for the help.
Ther is no room for a whole sale deal She owes 230 wants 60 plus 15 in repairs arv is 325
325-305=20- your 7 -13k for a wholesaler There is no profit left
All of the following is IMHO...
I would buy with seller financing but get the price lower citing the repairs required. I would buy it under LLC or land trust - check with an attorney. What are the rents for that type of property? What's the seller's T&I on a monthly basis?
My exit - Sell on Lease Option or wrap or land contract if the numbers give you a profit. (I don't know what is common where you are so speak to an attorney about what's customary between wrap or land contract).
Work your numbers and see if this deal makes sense. Your sales or option price minus your purchase price + closing costs should be positive. Your incoming seller finance payment or lease payment minus your outgoing PITI to the seller's mortgage company should be positive. Your option fee or down payment from your buyer minus whatever you give your seller down ($10k in this case if you decide not to negotiate it down) should be positive. I would tell the seller that I won't close until I locate a buyer so I don't have to put any money down myself.
I agree with @Account Closed , no room for a wholesale deal.
try a joint venture with the seller on a minor rehab
minus sales costs
minus rehab costs
minus private lender interest cost
minus joint venture fee
For minor rehabs, joint ventures get more money to the seller