Buddy needs help
My buddy just put a house under contract and I think he really messed up, I don't want to tell him to get out of the contract though unless I know for sure.
Details on the house:
Market value: $68,990
Under contract for: $51,500
Mortgage: $30,000
Is this a bad deal or what?! I'm pretty sure if he gets the house for $51,500, add in a $30,000 mortgage, he's under contract for a total of $81,500 for a house at market value for $68,990?!?!
Even if the ARV value is $100,000, I just feel like the numbers are too close and it's too much of a risk. Any advice or comments? I don't want to tell him to get out of the contract because I am new to this, but I'm pretty confident that this is NOT a good deal, especially since he is just a wholesaler.
If it had been me, I would have tried to establish an ARV before anything. This person didn't seem motivated either. If he/she would've taken $40,000 or less for the house, that's when I would've jumped on it. But I just don't think this is a good deal. Am I wrong?
By the way, he wants to sell it fast for quick cash, not rent it out. Please keep that in mind when you answer. Thank you!