Have a possible Wholesale deal but need help/advice

6 Replies

Thanks for your help in advance! So I came across a possible deal with someone that is in pre-foreclosure. She is pretty motivated to find a solution. The house is a 4 bed 1 bath 1483 sqf home with basement and garage located in the Denver market. The homeowner isn't to sure how much she owes on the property but has estimated it at 60 to 70k. Ive tried to look for comps but haven't had any luck with finding similar ones that have sold in the area (maybe I'm doing it wrong or using the wrong websites). I did find one that was 150k a few blocks away but without basement, garage and not brick.

I have not seen the house on the inside but from what im told its in good condition. I would calculate maybe 10k in repairs just to be safe.

Being that it is in the Denver market would it still be worth following the 70 percent rule? If so would it require a short sale? Also, can anyone Help me out with some comps from the MLS? Any advice to make this deal work?

Thanks You!

Hi Abraham-

You need to make friends with a Realtor and get actual comps. I've yet to come across a wholesale deal that truly needed only $10K in repairs. Homeowners always think their place is in "good shape". Even if it's not a total bomb, you'll need to update the kitchen and baths. You'll need to do the floors and paint. Roof, landscaping, HVAC etc. The only one I've done that has had less than $10K in repairs was a wholesale deal I bought that had existing tenants. The place is in bad shape and will ultimately need about $60-$70K in repairs for us to flip it when they move out in 3 years but for now we're just making incremental repairs while they live there. The most common term used by wholesalers "It just needs carpet and a fresh coat of paint." If only it were that easy :)

-Sal

Sal,

Thanks for opening my eyes on this issue. I will definitely take this info into account and will have to make a final calculation on repairs after I see the property but I do agree with you. This will be my first deal and although ive made some offers in the past and done plenty of research I still have alot to learn.

Thanks!

Originally posted by @Abraham L. :
Thanks for your help in advance! So I came across a possible deal with someone that is in pre-foreclosure. She is pretty motivated to find a solution. The house is a 4 bed 1 bath 1483 sqf home with basement and garage located in the Denver market. The homeowner isn't to sure how much she owes on the property but has estimated it at 60 to 70k. Ive tried to look for comps but haven't had any luck with finding similar ones that have sold in the area (maybe I'm doing it wrong or using the wrong websites). I did find one that was 150k a few blocks away but without basement, garage and not brick.

I have not seen the house on the inside but from what im told its in good condition. I would calculate maybe 10k in repairs just to be safe.

Being that it is in the Denver market would it still be worth following the 70 percent rule? If so would it require a short sale? Also, can anyone Help me out with some comps from the MLS? Any advice to make this deal work?

Thanks You!

I can help with comps for sure. I will even buy it from you if the numbers work!

Anson Young, Real Estate Agent in CO (#14161n)
303-475-9999

Anson,

Let's hope they work! I'll give you a call tomorrow evening.

Originally posted by @Abraham L. :
Anson,
Let's hope they work! I'll give you a call tomorrow evening.

Awesome!

Keep in mind, the payoff they 'think' they owe is always wrong with a preforeclosure. We would be getting the payoff from the foreclosing attorney, and it will ALWAYS have arrears and attorneys fees attached to it. I always take what they SAY they owe and add $10-12k onto it for good luck. Talk to you tomorrow Abraham!

Anson Young, Real Estate Agent in CO (#14161n)
303-475-9999

In my area (tx) real estate brokers can take on assistants and the assistant can join the board as an assistant and get full mls access. It costs like $150 to start and then $80 every 6 months. Then, you can pull your own comps and do a good analysis.

You can probably meet some people willing to do this for you on biggerpockets or at your local real estate networking meetings.

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