Need Advice first deal!!

5 Replies

I need advice on a possible wholesale.I have found a home that the owner needs to sale which was his parent’s home.The house is located 20 minutes east of Asheville NC in the town of Black Mountain.Black Mountain is a growing town with retirees moving into the area.The house is located down the street from a park/lake and about 5 blocks from the golf course.The owner states that the house needs about 30-40K of work to bring it up to code.Here are the numbers on the house:

3 bed , 1 bath, 1100 sq feet on a .23 acre lot

Per owner tax values is 142K and after repair value of 171K.The 171K after repair value he said was from a local realtor.He has a few quotes from contractors on repair cost that he says is in the 30-40K range.He is asking 75K for the home.I have not been inside the house.

Recent sales in the month of September 2014 within a 5 mile radius are as follows based on Zillow

2 bed, 1 bath 768 sq feet built in 1900 on .31 acres lot sold for 84K

2 bed, 2 bath 912 sq feet built in 1959 on .45 acres lot sold for 195K

3 bed, 1 bath 1000 sq feet built in 1919 on .29 acres lot sold for 158K

Based on after repair value, if the house is worth 145K based on taxes I’m thinking offer in the range of 45-53K for the property.

Here are my numbers based on ARV (145,000 x .70)-50K in repairs =51,500K for selling price.Also the property has an 8K lean on it by BB&T bank.

This would be my first wholesale as I have no other experience in real estate other than buying my own home.I do not have an investors list, but will be going to the local real estate meeting next Monday for the first time.Any thoughts, opinions, and advice on what I should do from here are welcome.


I follow the sub $200K retail market in Asheville regularly, but not Black Mountain, so I might be off a little... I think you're right to doubt his ARV. $171k for an 1100 sqft 3/1 does seem high for that area. I've seen several rehabbed small 3/1s in the 125k-150k range in Asheville this summer.

Also, when he says it needs 30-40K to get it up to code, I assume that means just to get it to code? If so, the rehab could easily exceed your 50K number too.

Conservatively since this is your first, I think you should consider seeing it in person and verifying the numbers by getting an agent to run a independent CMA (Comparative Market Analysis) and have a GC (General Contractor) walk it with you to give you an estimate. Even if those both cost you a little, what you learn may be worth it for this deal and others and could save you some trouble. Plus, you'll be able to provide that additional info to your buyers list which will help them feel comfortable that you've done your homework and allows them to make a better informed decision.

Another alternative would be to take it to another experienced wholesaler and see if they'd be interested in helping you through certain parts of the deal for a portion of the potential profit.


Thanks Pat that info is very helpful.  Are you a member of the local CREIA (carolina real estate investors association) and do you know of any wholesalers in this area?

I agree with @Pat S. about going to the CREIA meeting. That is going to be your best bet at finding a buyer. You will also get some really good advice there. Good luck!

Thanks for the help I'll be at the CREIA on Monday, not sure if I'll have the deal then but it will be good exposure.

@Johnathan Osborne Good luck! I haven't been to a meeting yet (I live in Hawaii at the moment and will be moving there in a few months). But I have met with several members from CREIA and found them to be excellent colleagues so far!

I think the current VP of CRIEA is still Rodrigo from Asheville Cash Buyers (wholesaler). I don't think he's active on BP, but he does have a web-site and I met him for coffee the last time I was out there, great guy.


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