Hey BP Fam., I need some advice on how to go about this potential wholesaling deal. The seller wants $89,000, she owes about $70,000 because she owes a loan on the home. She already has a tenant living in there. It needs about $10k to $20k in repairs. The lowest she will take is $75,000 but I know I can take it down to $70,000. Also, the property is estimated at $110,300. What should I do and how should I do it?? The only thing in mind is that if a cash buyer will really pay $70,000 CASH for the property. Maybe $45k, the most $50k, but I don't know about $70,000 dollars all cash. I will highly appreciate an experienced wholesaler point of view. I have read and acquired a lot of information on wholsaling but now I'm totally confused.
Yes, there are investors who have that much money cash to purchase a property IF it is a good deal. You mentioned the property was worth $110k, is that in its current condition or is that the After Repair Value (ARV)? If that is the ARV then the investor would not make any money after repairs, closing and selling costs.
- Originally posted by @Chelsea Tustison :
Yes, there are investors who have that much money cash to purchase a property IF it is a good deal. You mentioned the property was wrth $110k, is that in its current condition or is that the After Repair Value (ARV)? If that is the ARV then the investor would not make any money after repairs, closing and selling costs.
Yes, I believe that is the current value of the property. Also, I asked the seller if she will make the Purchase and Sale Agreement, but she said until I find a motivated buyer. What do you recommend I do next? Is it a good deal? I mean, I know I have to describe the # of beds, baths, sq. ft., and the amount she owes on the loan of the property. I called the first person on my buyers list, he ended up being just a wholesaler with no proof of funds. Just tried to slick get the address and phone number of the seller, which didn't happen. BTW, thanks for your response!
First you need to know the ARV. You get this by finding comparable properties (same beds baths and sqft) in great condition in the same area that have sold recently, usually within the last few months. Whatever they are selling for in nice condition is the ARV. Now take your purchase price, and add the repairs needed. So 90k. If that is 70%or less of the ARV, then you may have a deal. Now as far as a buyer is concerned, if it turns out this a great deal, if you have a plus or pro account here on BP you can market the deal to cash investors in the Marketplace.
Great, I will do just that. Thank you very much.
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