1st Wholesale Deal: Struggling to get buyers, and know what to do
I have a SFH under contract 3/1 with a new roof in Quaker Valley School District, ARV $125,000 to $135,000 have a good comp a few doors away from 2/2/22 SOLD for $145K but was a 2/1.
Up to this point my experience has been on the Contractor side of the equation. The property needs a renovation of $30K, which I feel is adequate, I mean I'd price the job at that.
I understand the process but have never gone through it. Any suggestions or help are appreciated.
What price are you marketing it for? If you truly have a deal then you shouldn't have an issue with finding buyers. Make sure you have joined all the groups on facebook for pittsburgh real estate investors and the local REIA. There should be a fair amount of buyers in those groups and if you post the deal and the numbers are good you should have them reaching out to you to buy.
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Real Estate Agent SC (#112496)
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So, being conservative, a "typical" investor is going to buy 70% ARV minus repairs. So $125k -> $87.5 minus repairs = $57.5.
I assume you have it under contract less than this amount.
Make a flyer for the property w/ a couple pictures, your comps, asking price, etc. - bring it to REIA next Tuesday at the Greater Mason Temple 6-9PM. You will meet tons of investors and probably can get a good lead on a buyer. Brian Snyder runs it and he will partner with folks if you need help finding a buyer.
Are you questioning the process of putting it up to try to whole sale it? Or the contracts? or what part of the process?
I agree with @David Lee Hall, III with the ballpark figures. Being optimistic at $135k ARV, less resale closing costs, repairs and profit, you should definitely be under $60k and that doesn't even consider your fee, so hopefully you have it under contract closer to $50k or less. Just a guess but if you are struggling to find buyers, that means you either a) don't have a very good distribution list to shop it to or b) it's not a great deal and it's obvious to buyers that there is no room for profit. I know if my top 2-3 VIP buyers don't want the deal I'm presenting, it's probably not that great of deal and I need to let it go or renegotiate. Best wishes!
What price do you have it under contract for? I will buy it.
what are you selling it for?