All Forum Posts by: Alex Klimenko

Property is in the Richmond Virginia area. Yes, I factored everything in terms of closing and commissions (paid to me). There isnt a real estate agent involved. 

Sorry, new to the forum, still getting the hang of things.

As far as everything else goes, thats good inside, I'm of the same mentality. This wont be my first purchase, but it will be my first wholesale flip so I am trying to see what the general consensus is. I also see you're from San Diego, assuming you do deals mostly in the SoCal area, Im sure its a whole different animal down there (not to say your reply didnt provide me with some good pointers, thank you).

At 230k after closing is about 210k? Who does your closings, because I have bad news for you....

And the 10-12k rehab could turn into 20? I mean if I have foundation issues or frame going out or something, but when I am talking cosmetics like paint and carpet on a house thats under 20 years old, you would have to be pretty stupid to be that much off.

I mean, I like constructive criticism, like some of the comments above. But your reply just seems way off.

Makes sense, I have the same opinion. I feel the investor is going to try and talk me down no matter what price I present to him. I would happily walk away with 5k (which I think would be a complete steal for the investor), but if I start at 5, he would probably try and talk me down to 2.5

Bump

Hi guys,

So I recently came across an amazing deal which I got under contract. I ran the comps and they are amazing, I am about 55k-60k under market value on this property. A house across the street with the same exact floor plan, and year built, sold for 230k in January. This property is currently not on the MLS, and how I got my hands on it is for another thread. All in all its an amazing deal and only needs light work (carpets changed in bedrooms, paint inside, and maybe upgrade the kitchen sink and toilets. 10k-12k max, I did construction and remodeling work for a while so I know my prices).

I want to flip this property to a potential investor, in fact I already have a meeting next week with an interested candidate. I dont want the property for myself because a) I have too much going on right now (I co-own another business) and b) its about 2hrs away from where I live. I would be much happier flipping it to an investor who would pay me a commission, make a decent amount of money, and have him come out making really good money and wanting to work with me in the future.

My question is, what is the "norm" profit on wholesaling a deal to an investor? I have the property under contract for 168k, when its valued at 230k with minimum work needed. I would think its completely fair for me to ask for 10k, and hand it over to him for 178k. At that rate after closing, he would be right around 180-182ish, and at 195k with a 13k investment in remodeling. That still puts him at $35k +/- profit if he sells. Can someone give me an idea if I have my numbers somewhat right? I just dont want him falling out of his chair when I say 10k (he knows how much I got it under contract for). 

Thanks!