All Forum Posts by: Crystal Smith

Antoine- The title of your post is "Is It worth it to Wholesale this property"   

If your customers are intending to buy and hold then maybe this is a good deal.  Are the market rents high enough to justify purchasing a property from you for >$107K.  

If you're customers are looking for properties to renovate & flip then this is a terrible deal that you will never sell to an investor & the basement doesn't matter.  

My answer to your post- Learn what you're customers want

@Jon Mccarthy Are you curious because you're only interested in purchasing one of the properties or is it just for education purposes?  There are so many reasons the owner may want to sell both properties:

• The properties may be on the same note
• The owner may be using a 1031 exchange strategy
• The owner may just want to liquidate all @ once rather than spread it out w/ multiple transactions.  We see this quite often w/ investors that have determined it's time to get out & if possible they look to liquidate it all @ once.

Probably a dozen other reasons to speculate why he's doing it.  

@Mark Ainley We have a Preservation company we work w/ that I think would take it on.  Direct intent Logistics.  I'll PM the email address.  BTW  One of the principles is Crystal Smith, no relations.

What's a .75 bath?

@Michael Barbari we don't use the BP calculator as we have own our tools. Making some Assumptions on expenses we came up w/ a CoC of 6.17% w/ 25% down, $232/month.

@Ed Neuhaus Not sure why the wholesale fee matters.  The real question is can you make your numbers given the cost of the deal?  We've paid large & small wholesale fee & also charged large & small wholesale fees.  If we can't make our numbers  we negotiate for a lower fee.

@Kumar Paj  You should have pointed any issues out during the contract inspection period, not after you've closed.    I assume the property, as w/ most foreclosed properties, was purchased "As Is". If you've closed, didn't point out issues during your inspection & the property was purchased "As Is" you have little to no recourse.  

15% interest in 2 months.  That's 90% on an annualized basis.  Pretty good.  An idea to protect your interest:  Depending on what the monies will be used for;  (example:  $ for the renovation);  you can escrow the funds w/ a 3rd party (Title company, lawyer) that would only release funds after work is completed & inspected.  You may release some up front for borrower to get started but the remainder goes to a 3rd party.  The borrower knows that the funds are available but you maintain some control to ensure the $ go where you expected them to go.  Establishing an escrow will increase the cost of the money but .... 

You don't have a deal w/o a signed contract.  You don't control the property.