How difficult is it to wholesale a property in excellent condition?

Question

I have a property where the seller wants $175k for it. It’s in excellent condition. No work is needed to it at all. It’s been completely updated. The comps put it at $285k in excellent condition.

How difficult would it be to find a cash buyer for this property?

Or would this be better to wholetail? Is it difficult qualifying for transactional funding?

Chris Seveney · Answer

@Mike Schorah

If it’s truly worth $285k and seller wants $175k then it should sell like hot cakes

What the real question is, is it really in excellent condition

Jerryll Noorden · Answer

Its not at all about condition of the house or cost of repairs. It's about finding people willing to sell below market value.As long as you obey that rule, everything will automatically fall in place. Wholesaling becomes child's play.We have wholesaled plenty of houses that were ready to be listed on MLS perfect condition.Here is the problem a lot of investors struggle to deal with. Almost everyone thinks that when someone needs to or wants to sell a house that the reason is "they want money". Often thus us indeed the cslase but those are the wrong audience to target. You need to find people that are selling their house where money was not the reason for selling. And that is ALL I DO! While everyone obsessed about finding leads, any leads,  I focus on finding people willing to sell below market value.the problem is you can't target them. No one knows when someone becomes motivated. So what do you do? Figure out a way how to make these people obsessively find YOU. and that's all it takes. Easy simple free!

Account Closed · Answer

What if the seller has a foreclosure sale date set for next friday? What if the seller has a mafia loan that is due on saturday? What if the seller is a member of congress and just got caught with bars of gold and cash stuffed in his suits in his closets and needs to "off load" now! Immediately. You never know what motivates a seller until you ask and then sometimes, even then they will lie to you. Imagine that.

What if the seller is one of two people on the title and is trying to rip off the other person on title? What if the seller isn't actually even on the title?

Think of the possibilities, they are endless. ;-)

Bob S. · Answer

Ok good point, you are correct ya never know. My bad, see I own my mistakes, my old GF would be proud of me LOL,

All the best

Don Konipol · Answer

A house worth $285k will ALMOST never be willing sold for $175k by a seller.ALMOSTThe key is ALMOST.So, as crazy as it seems, as rare as it occurs, IT HAPPENS.Got a call (years ago) from an investor I knew.  He was filing BK the next day. Had an asset he didn’t want to list on the BK that he owner free and clear.  Worth, IMO, $120k.  I bought it for $15k.  cash, that day.

Another time I got a call from an acquaintance.  Owned an auto repair facility with potential environmental problem. Wanted out.  I was familiar with problem and told him if worse case scenario it could be rectified for $50k.  Said he just wanted out, couldn’t stand the problems anymore, had no tenant and didn’t want to get involved as landlord again.  The property was worth, cleaned up, $300k.  I bought it for $100k cash.  Was pleasantly surprised to find that environmental clean up cost only $3k, and paid off $10k various liens.  Sold the property three months later for $325k cash, buyer got an SBA loan.

These are extremely difficult to find, mostly you’re known by someone as a buyer with cash who can close unbelievably fast.  My expertise is in commercial property, not residential, so I don’t know how often these may exist in the SFR arena.

Eliott Elias · Answer

Investors do not prefer work, the only type of properties that sell cheap enough to an investors criteria are properties that need work by default. If the numbers work, and the property is turnkey, it is more desirable.

Jerryll Noorden · Answer

Read my post above.

we have been gifted houses that were perfectly fine. Understand the concept of motivated sellers. From your reaction this is  completely incomprehensible to both of you. That's bad. If you don't understand how this can possibly happen you will never be able to find motivated sellers. I made it my career to exactly find people that are willing to sell a $300k house for $40K.

be open minded and I promise you it will change your life!

Bob S. · Answer

My thoughts exactly, As I mentioned these are NOT accurate numbers,

How difficult is it to wholesale a property in excellent condition?

Most Popular Reply