Newbie here, need wholesaling advice.

[Laura Diaz]

Hi there BP'ers!

I am working on getting my first wholesale deal. I found a 3bd 1ba house that is 1300 sq ft. Seller bought it 1 year ago from a friend that was going through a divorce for $50K. He said he has done about $13-14K in repairs since he bought it and needs about $3K in kitchen upgrades and replace 3 windows. He is asking $64K. I have looked at comps in the area that have sold in the last 6 months and they are from $110K-$160K. I have not walked the property yet as seller is out of town until next week. He does not live in the property so it is just sitting. He says he is open to offers but would like to make some of his money back at least. From what he says over the phone it doesn't sound like it needs many repairs so I estimated $10K in repairs until I can get in there and walk it. I am most confused on the math part of the deal... Saying my ARV is $110,000, offering him $55-60K and asking $5K for my assignment. Does that sound accurate or like a good deal the buyer can profit from?

[Will Barnard]

So a red flag jumps out at me here as I read between the lines. He bought it one year ago for $50k and put $14k into it so he is in at $64k. If it only needs $10k more to get it to $110k, why on earth would this seller not want to do that?

Second, it appears to me this seller got in over his head and things have gone wrong, perhaps a rental turned bad, or . . . That tells me that you can offer $50k and he may walk with a $14k loss and an education. If so, and IF it only needs $10k more, then you have a deal on your hands. You could probably sell that to another investor for $60k all day and make $20k. Again, that is IF $10k rehab is correct and IF it can sell at $110k easily.

Lastly, read this thread: https://www.biggerpockets.com/forums/93/topics/583...