High Profit Deal: Do I Wholesaling/flip It?
Hi. I have been offered a piece of property for $1 million that has appraised, so I've been told-not seen appraisal yet, for $2 million. It's a nice house, hunting lodge, 603 acres land, stock fish pond, etc. I build houses, so this is out of my area, but I've been reading a lot here, wanting to expand my interest.
Questions: 1)Should I try to bird-dog this property; or 2) Should I put a contract on it subject to obtaining financing and then try to sell my contract for a larger profit.
I've not quite figured out all the correct terminology for specific actions yet. I just know there is a lot of profit to be made here. Any suggestions would be appreciated.
Thanks,
Terry
There are several methods to get this done. Yet financing for 2M sales price has a limited clientele. So step back a moment and think in a smaller scale:
What does the property need to become an attractive investment to a buyer?
What is the underlying reason for the property appraisal?
What makes this property so attractive outside of buy low sell high?
What are the carry costs for the investor to find a seller?
If you sold your contract to a buyer would the property pass through the closing process? (Inspection, title search, water well & septic, etc.)
This should get you started in the right direction. If you are new maybe you may consult a real estate investment mentor to discuss the solutions in detail.
Eric & Rosa
[addsig]
Can you buy it and live there?? It sounds like a piece of paradise!!!!
Let us know if you throw a party!
Thans for the replies Eric and Rosa:
"Yet financing for 2M sales price has a limited clientele"
Agreed. Right now it's got a hunting lodge too where they did hunting camps. Thinking the property should be divided into smaller parcels with some exclusive executive homes/home sites. If it's turned into a development, then there is far more money to be made more easily than, as you say, looking for a $2 million buyer. Bring it down to a more demanding market.
"What does the property need to become an attractive investment to a buyer?" Solid business plan showing a quick return on their money?
"What is the underlying reason for the property appraisal?"
Not sure I understand...
"What makes this property so attractive outside of buy low sell high?"
Growing area, increasing property values, etc.
"What are the carry costs for the investor to find a seller? "
Doing the math now
"If you sold your contract to a buyer would the property pass through the closing process? (Inspection, title search, water well & septic, etc.) "
Looks good so far.
"This should get you started in the right direction. If you are new maybe you may consult a real estate investment mentor to discuss the solutions in detail. "
Thank you again for the starter questions.
Anybody here available for an investment mentor? Will partner in exchange for mentoring.
Hi, Optimum, I already live on 95 acres and that's too much to keep up with!
Thanks again y'all!
Terry