will this work for a wholesale deal...

Question

Hello all, i found a sfr reo in which the bank is asking 20k. It just came on the market last week .
 
concrete block

sq ftg 1023

3bed 1 bath

just mkt 44,318

comp sales 54k

needs about 7k in repairs

Raymond B. · Answer

A house built in 1963 shouldn't have any "Chinese Drywall" in it.
If the house was damaged in the Hurricane in 2005, and needed drywall replacement, it could have some of that "Chinese Drywall."

Raymond

Will Barnard · Answer

Note: Be careful with the chinese drywall in your neck of the woods! That could be a reason for the low list price.

Will Barnard · Answer

I am more curious why the bank would MLS list it for only $20k if it only needs $7k in repairs and has a current market value of approx. $50k?

If you locked up the contract at $20k with the bank, you certainly have your self a good deal (both for yourself to rehab or to wholesale) so long as the numbers you provided are accurate.

$50k ARV X .7 = $35k less $10k repairs = max offer of $25k.
Offer $15k and see if they bite, make yourself some more coin and leave your self room to counter up to $20k.

Jeffrey K. · Answer

If it is such a good deal why wont the investor just buy it off the mls?

Kevin Smith · Answer

thanks for the response guys i'm gonna put in my offer tommorrow. The house was buit in 1963 there should'nt be an issue with chinese drywall am i right ?

Kevin Smith · Answer

okay jeff i guess i get your point, but i never said it was a good deal. i simply asked would it work for a wholesale deal.