I Need An Investor For Wholesale Flip
Heres the offer presented to me for purchase:
Is It Listed With Realtor : No
The Property Is A : Other
The Property Is A (other) : double
Number Of Bedrooms : 2 bed per side
Number Of Bathrooms : 1 bed per side
SQ. FT. : 2000
Other Features :
The Home Is Currently : Vacant
Does The Home Needs Repairs : Yes
The Repairs Needed Are : painting
The Estimated Expense Of Repairs Needed Is : 300 dollars
The Estimated Value Of The Home AS-IS Is : 20,000
Arrived At The Estimated Value By A : Neighborhood Comps
The Estimated Value Of The Home AFTER ALL REPAIRS Is : 50,000
The Asking Price Is : 7,500
Terms Of Sale : All cash rehab deal
I am still learning... but does this sound too good to be true? I guess he couldn't be lying, I would find out... I guess I could do a title search to find out what the deal is........ Any thoughts on this?
Also.......... If I find that this is a solid deal, I would need an investor. I'm sure $7,500 is pocket change to most of you guys... 
Any Volunteers???????????????
[addsig]
Painting a home does not raise it's value $30,000.
There are more repairs than he is telling you.
You should also forget about whatever he says that his comps are and do your own comps.
Finally, go to the courthouse, pull the title on the property and see if he even owns it.
This deal sounds too good to be true. I'd be careful if I were you.
Mrs. Meltzer
I don't understand what the realtor is telling you. This is 2X1 and 2000 sf. It sounds too strange. You only need to paint and the value goes up to $50,000 from the purchase price of $7500????
I would call the realtor anyway to see what the deal is. If this is too good to be true (it does sound like it), all you need to waste is a few minutes to make a phone call.
Thank you for the advice.
Some of my post was lost I think... The owner is the person I spoke with. He said that he is wholesale investor, and had all the wholesale properties I could hanlde... He said the house was in good shape. I know the area. Comps are every bit 50k... lowest would be 40k... Does that make it sound a little more realistic? I am supposed to call him in the morning, he gave me his phone number. I'll let you know what happens.
[addsig]
R4S:
I'm anxious to hear what he had to say...let us know!
he may be saying he'll assign his deal to you for $7500,. It does sound too good to be true, however if it is real, and you don't call, you're goine to regret this one for a long time. At least check it out.
Good Luck,
Jeff
But if he is trying to assign it to you, and it sounds like you are not a rehabber, then don't go around double assigning it unless you KNOW that you have a solid rehabber with cash who you have contacted already, who is hungry.
Double assignments, from what I have heard, do not close a whole lot, and you end up spreading a bad reputation about yourself and assigners/flippers in general.
At the very least, spend some time, if you haven't already and establish contact with investor rehabbers first before making an offer.
Best of luck (and if you are a rehabber, disregard what I said!
Hello
Research what your resale value is and see how much repairs are really needed. $7500 does sound way too low to be the price so that may be his fee. Go back and ask what the price is again and if it is a good deal take it and make sure you get enough time in to find someone. One thing I find common amongst newbies are they wait to long to make a decision out of fear (False, Expectations, Appearing, Real). You will never know until you try. I was once told by a millionaire that people tend to take too much time aiming at a goal than shooting as many times as you can to reach it.
Hi guys. thanks for the input...
Update: I checked with the assessor's office. The property is owned by the man I spoke with. It does not have any back taxes owed, and is current until next year......I reconfirmed that the asking price is $7,500. I am waiting for a call back for the guy today to get further detail, we have only spoken via email so far. The property is in Indiana, I live in Delaware... but visit there often.
I am having my cousin do a drive by... No not that kind of drive by............ Just to see if it's an obvious crack house or something, and what the surrounding area looks like.
Will let you guys know what I found out. It true what you said, that sometimes need to just take action. I wont jump without looking, but I guess there's no reason to stand there staring forever either, huh?
Oh, I wouldn't say I was a "rehabber", actually I'm not an "anything" yet.... I'm looking for my first deal. I will do whatever, rehab, flip, rent................just looking for a deal that makes sense to start with.
And I need an investor.
[addsig]
remember to check for federal judgments (US District Court, etc ...) against the owner - those can be held against the property as well. and if you didn't check it when you checked other things, make sure there's no nuisance liens/abatements and utility bills as well (water/sewer, electric, gas). just to cover your tracks. at least in philly, the rest of that stuff can be found at the prothonotary office in the courthouse.
good luck!
Might be interested as investor. Where in Indiana. Have sister in Indianapolis who I could have check it out.
Bill H
sounds like a wholesale assignment of 7500 for you to take it....
7,500...that sounds more like a closing cost or a commison to be paid for closing if you ask me... maybe 40 years go could you buy a ho use for that..not now though