How Should I Structure This Deal For A Wholesale?
Hi everyone
Ok this is the deal i found.
Found house FSBO, All brick ranch style home in my area.
Home is a 3bdrm,1bth in front, back half of home was added on years ago as a 1bdrm,1bth with frontroom and small kitchen, small back yard but corner house with grass in front and side of house, 2 1/2 car garage.
Talked to home owner and she said she had a couple who lived in the house the past ten years who was all ways late but did'nt give her any other problems.
Well tenents moved out earlier this month with no notice and took all appliances and left house and garage filled with junk.
She wants to sell i asked her asking price and she said she did'nt know?
She said she doesn't want to list with a Realtor and just wants to sell house as is knowing she wil have to sell it below market and buyer buys even with junk inside.
She said she owned house the last 16 years and paid cash for home and took a loan out afew years ago for $54K to buy another house right down the street from where i live.
From what i can tell the house needs a coat of paint, new gutters, garage door, new carpeting, new kitchen and baths, the roof looks great, has newer storm windows.
Now i spoke to my Broker guy and he gave me comps between $235k to $245k retail.
I know the house needs at least $30k for rehab i maybe guessing to much for rehab.
Now my problem is this i would like to offer her a fair price and get it under contract to wholesale to another investor for a quick profit.
Thats one of my problems don't know how to put under contract.....
My broker said the village will make me or the rehabber take the kitchen out of the back half of house due to building code, so the house would be a 4bdrm, 2bth house very good for the area.
He said try and get the house for $170k and put in the $30k or $40k and make a nice profit but i feel she is willing to take between $135k-$145k which is even better.
But sense she don't know what she wants how do i make the offer and get it under contract to whole sale to someone else and make a profit with out putting any of my own money up and make the deal work for her,the investor and me?
Thanks for all replys and sorry for the long Post.....
Please don't PM me because im not set up to read them.
So no one from this board doesn't know what or how i should approach this deal.
Well i see afew people have looked at my question but the well known gurus haven't givin any advice or replys.
Well thanks to all who atleast took the time to read my post.
A Quick answer would be:
Read the post titled "Newbie, Where Do I Begin? Looking To Wholesale Or Take Assingments"
Read the post at the bottom by Andy. The whole process is outlined.
Good luck buddy. This looks like a good deal and a win, win, win situation!
Now, let's go get this money!!!
8-)
[addsig]
Hi Quikness
Thank you for taking the time to reply to my post.
I've found an investor who is working on this deal with me and we have a contract between us that if he and I can get this deal under contract as a L/O or straight purchase we'll split the profits 50,50.
I have 4 more deals like this one and he said we'll do those and any other deals that i bring him we'll do the 50,50 split.
I found him at a REI club and he came highly from other birddogs and wholesalers from the club.
He said we should be able to split $100k on this one deal, he spoke to the lady who was selling and we have her around the low $130'sK and from what he saw when we went to the house he feels we can rehab it for $20-$25 and sell for $240k for a quick sale.
I'm crossing my fingers on this one.
Thanks again for the help quikness.
Quote:
On 2004-12-15 19:13, Quikness wrote:
A Quick answer would be:
Read the post titled "Newbie, Where Do I Begin? Looking To Wholesale Or Take Assingments"
Read the post at the bottom by Andy. The whole process is outlined.
Good luck buddy. This looks like a good deal and a win, win, win situation!
Now, let's go get this money!!!
8-)