Something I Am Considering
I was looking through some FSBO sites yesterday, I found a property and I contacted the owner...well he isn't the owner.
I called this guy today, basically a wholesaler has him under contract, he has 10...well now 9 days to close. For some reason or another he can't do the deal I believe he said because he needs appraisal, title work, all that stuff before he can get a loan, and I guess he didn't have the money to do it, he said he doesn't want to do hard money...sounds kinda fishy, but anyways...
He said he doesn't want to lose his $1,000 earnest money so he's trying to find someone to buy it and get him out of the deal.
The house appraises for 85k (after rehab, it needs 7k in repairs) seller wants 48k. So I saw the house he sent me a picture.
It looks like a decent property, one that I wish I had under contract.
I'm almost thinking about getting the hard money and flipping it.
He gave me the wholesalers name and number he mentioned "Real Net" and thats the wholesalers company.
I don't know though, something doesn't feel too right. I think for my 1st wholesale deal, I'd like to be the one in control and finding a buyer.
I just think that I should pass on this one. I was thinking I could get a hard money loan, then turn around and wholesale it to one of my buyers. If I bought it at 48k, then sell it for even say 58k to a rehabber. Then even if the repairs are 8k, thats 64k, plus maybe 4 to 6k holding cost for the contractor. thats only 70k, they can still make 15k off the deal.
What would you do?
Or I could just wait, maybe the wholesaler's contract will be up soon and I can move in, but then the owner might be a little skeptical and not want to let someone tie it up again.
Im thinkin into it too much I think. But again...What would you do?
JB
[addsig]
Ahhh wait one thing I am not taking into consideration is that most of my buyers need 65% LTV...hmmmm lemme run this through my head right quick, I would have to wholesale for 55k. maybe 54k.
Ahh why be greedy, 51k. I want return buyers.
JB
[addsig]
In wholesaling it is better to leave money on the table. Repeat business.