Updated about 9 years ago on . Most recent reply
Wholesale a burned property
Hello all I am a new wholesaler working on a deal right now and i was hoping to get some advice on the risks involved in this deal. The seller is asking for 60k for the house as-is but it has come to my knowledge that the people that she was renting the property out to burned the place because they were evicted. According to the seller the property needs to be "demolished". Is there any money to be made here on this deal or should my partner and I move on? Do you think a cash buyer would be interested in a job that is more than just rehabbing? I know that the seller wont get the price she is asking for and my partner is heading out to the property tomorrow. Any info or advice would be amazing! Thanks guys!
Jared
Most Popular Reply
Depends on how burned. If it does need to be torn down, that costs money. so the value would be the value of the land minus capex for tear-down and removing the debris. I have heard on podcasts of people rebuilding houses but I think those buyers are more rare. But Sac is a hot market with lots of construction companies. Check the county tax records to see what they appraise the land value at, and maybe some of the neighboring properties.
Also depends on the ARV. If someone can't make 30k off of it, you may have a harder time finding a buyer.