OK guys I have another lead that could potentially be a home run. Its a 2br 1ba drive for dollars lead so i can visit it if need be.The house is vacant, free and clear of mortgage and has been for quite some time. ARV is 350k.
I have an appointment to see the house inside and out. By the looks of the outside, the house is in dire need of TLC. I have 3 questions to ask you guys:
1. I'm no contractor and I have no idea where to begin with making an estimate on the necessary repairs. How do I come up with a repair estimate?
2. The property is in Yonkers, NY. I've been networking with a lot of Westchester County marketers and they have all given me 10 different stories as to what type of contracts should be used, what type of LLC should be set up for wholesaling etc etc. Is an LLC necessary at this stage in my wholesaling business? This would be my very first deal.
3.Are there any special contracts available that are used by NY investors? I'd like to bring a copy of the contracts with me to my appointment, as I would like to be "over" prepared opposed to being under prepared and not be readily available to close the deal.
All is appreciated. Thanks again for the wholesaling advice and real estate wisdom.
Just curious, are you wholesaling the deal to another buyer or rehabing it? A little confused because you mentioned contractors but then you mentioned setting up a legal entity for a wholesale business.
Multiple investors that I've been networking with have given me scattered advice as to how to set up my business opposed to wholesaling with my name and not an LLC.
I would like to wholesale the deal, but if i could talk the seller down i could possibly work something out. How would i bypass the wholesale route and move straight to rehabbing?
@Sal Mazzone do you have any suggestions?
I have a suggestion. If this is your first wholesale deal, Don't rehab it. Wholesale it, take the money and have a good learning experience. Regarding the repair estimate. Take a contractor with you. Many of them will give you an estimate for free or charge you a nominal amount for their time ($50).
The paperwork issue I can't help you with because I'm not familiar with NY law.
I'm just still a bit confused by what you said below. If you are buying the property from someone it's yours to own and rehab as you please then either flip or rent. If you are wholesaling you would be buying the property from the owner, then selling it to another buyer/investor for a spread.
"I would like to wholesale the deal, but if i could talk the seller down i could possibly work something out. How would i bypass the wholesale route and move straight to rehabbing?"
also, I agree with Roland about just wholesaling it. I would suggest having an attorney who can assist in structuring the contract.
I understand @Sal Mazzone
What i'm asking is when you wholesale, do you use any contracts that are specifically drawn up for wholesaling in NY? Or maybe i should contact an investor friendly attorney
I have gotten a contract from my title company that is also owned by a real estate attorney. Check a local title company (if you don't already have one) and see if they have an attorney on staff. That way you will be sure there are no gaps in the contract. If no attorney, no big deal, just ask the title co. For a blank assignment contract. They are usually very helpful as they are wanting your business.
Hope this helps!
Hi @Tiffany Cunningham ,
I am an investor who's pretty active in Westchester, specially Yonkers. If you're still active I would be happy to look at any deals you have, specially those requiring TLC. We have our own GC so we specially love rehab deals.