I have a potential wholesale property that this owner called me on regarding my bandit sign. Comps show potential ARV $180-190k. His balance for mortgage is $88k, but payment at $2260. County records show he bought in 1997 for $125k. Not sure why payment is sohigh, maybe second mortgage at high interest. He keeps lowering asking price now down to $85k. Based on formula and me wanting $5k for my fee, does this sound like a good deal? Oh..rehab about $40-45k. If traditional wholesale deal isn't good is there any other creative ways to get this property? High payment seems to make prohibitive for a lease option. Just trying to come up with a way to make it work, without "chasing a bad deal." Thanks for any help.
.7 x180 - 45 repairs = 81 - 5 = 76
If he brings cash to closing, walks w 0
Looks like it is a deal you should walk away from.
u got great Ingredients for a deal, motivation and equity, try partnering up with a local vet. I think you can get more than 5k rip.
Got some better comps from a realtor, $190k. He will take $85k, revised rehab to $35-40k I overestimated but house is little smaller than what I estimated. $190x70%-$40k=$93k. So I could possibly walk away with $8k. Yeh I should ask why his payment is so high, but title search should show something sketchy correct?
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