Wholesale Deal in VA Beach

Marketing Your Property
10yFollow

Wholesale Deal in VA Beach

Carita Yeager
Investor · Virginia Beach, VA · Member since 2015 · 11 posts · 0 votes

I just put a contract on a 4/2.5 2200sqft home.  It also has a separate lot that is almost a full acre - zoned for single family res. or multi-family res.  I'm debating how to market this because, I could possibly sell the home to an end buyer for what I have it under contract for and then sell the land separately.   

First question: my contract is for both the land and the house, can I sell just the house using transactional funding?

Second question: land values varrie dramatically throughout VA Beach, nothing has sold recently near this lot, so I'm wondering is there a formula for determining market value i.e. I think I read somewhere that most builders will pay approx. 30% the value of the new home.

Any thoughts or advice would be greatly appreciated.

Thanks. 

Carita

0Reply
22 views

Most Popular Reply

Duane Ortega
Transactional Funder · Neptune, NJ · Member since 2011 · 187 posts · 86 votes
10y

@Carita Yeager

Transactional funding is used for buying property vs. selling and then selling the same property to another person/entity on the same day.  Given this, do you mean can you buy (vs. sell) both the land and the house using transactional funding?  Answer is yes.  Otherwise, please clarify the question.

1Reply
See this reply in the discussion

6 Replies

Jump to latestLatest
  • Duane Ortega
    Transactional Funder · Neptune, NJ · Member since 2011 · 187 posts · 86 votes
    10y

    @Carita Yeager

    Transactional funding is used for buying property vs. selling and then selling the same property to another person/entity on the same day.  Given this, do you mean can you buy (vs. sell) both the land and the house using transactional funding?  Answer is yes.  Otherwise, please clarify the question.

    1Reply
  • Carita Yeager
    OP
    Investor · Virginia Beach, VA · Member since 2015 · 11 posts · 0 votes
    10y

    Thanks Duane, 

    OK - let me try to clearify.  I have a contract on the house and extra lot for 310k.  I'd like to sell the house only for 315 -320.  When I go to close with the transactional funding, the house and land are technically mine - Then the second transaction would be to the buyer of the house.  This would pay off the land and the house, but I would only be selling the house.  Title for the house goes to the new owner, title for the land goes to me.  Can this be done?

    My other option would be to sell the house and the land together to an investor.  The house only needs cosmetic updates, it has been very well cared for.  With updated baths etc it would probably sell for about 360k, maybe a little more.

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    10y
    paying $320k for a $360k resale will find you zero investors They are paying $21k in realtor fees and have to do work on the home and either pay cash or hard money. For a $360k ARV the cost would need to be closer to $$275-300k depending on how much the repairs are. In regards to the lots, are they separately deeded and have separate tax ID's ? If not then you would need to subdivide the lot (which will cost you a few thousand dollars)
    7e investments53 Reviews
    WebsiteView Page
    0Reply
  • Carita Yeager
    OP
    Investor · Virginia Beach, VA · Member since 2015 · 11 posts · 0 votes
    10y

    Thanks Chris,

    They are in fact separate already. The 320k price would be to an end buyer. An investor would only pay about 258k for the house, but the land is worth 100k. That is why I was trying to sell the house to an end buyer and then sell the land separately to an investor. If it is possible I would make a lot more on the deal then selling house and land to an investor. Especially, since the property was brought down to 339k on the MLS. No investor is going to want to pay more than what they could have paid last week. So I'm thinking I would have to sell to an investor at 339 or less. Which is still a nice profit, I was just trying to look at both options.

    0Reply
  • Duane Ortega
    Transactional Funder · Neptune, NJ · Member since 2011 · 187 posts · 86 votes
    10y

    @Carita Yeager

    @Carita YeagerYes, after you close on both land and house for 310K with transactional funding, you can just sell the house separately on the same day to an end-buyer for 320K or investor for 258K since they are separate already.  One problem I see is how will you pay off the transactional funder?  With closing costs and fees, 320K may not be enough to pay off the funder and 258K is well below the payoff price.  One thing I can see you doing is selling both the land and house to different people on the same day vs. just selling the house on the same day.  In this way, you will earn more profit by selling them individually and covering your transactional funding costs and closing costs at the same time.  You keep the net from both transactions.

    0Reply
  • Carita Yeager
    OP
    Investor · Virginia Beach, VA · Member since 2015 · 11 posts · 0 votes
    10y

    Duane, Thanks for continuing to give advice on this.  I actually have a membership that allows me to use their transactional funding at no cost, (they make their money on other aspects of the program). I'm in a pretty good position since, even though it is listed with an agent, I know the seller pretty well and I'm fairly certain she will work with me on the numbers if we need to make any adjustments.  

    I love the idea of lining up the buyer for the land on the same day as the house!  That will give me more flexablility on the price of the house in order to get this sold quickly.

    I really appreciate you.  Thanks so much!

    Carita

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free