My house is needs repairs. I want to get into wholesaling, but am in bit of a financial crunch, tight, or however you want to put it. I have been out looking at other houses for possible wholesaling. But it occurred to me why don’t I wholesale my own house. Does this make any sense? My finances are in such a state that I might lose it anyway, so why couldn’t I wholesale and possibly get more for it than selling it which would take a bit longer to do anyway?
Another thought occurred to me…Do you think it would be possible for me to get a hard money loan, repair the house myself then sale it?
Maybe these are dumb questions…but I’m feeling a bit panicky on what to do to save myself. Any help would be appreciated.
If you want to sell your house quickly at a discount, there’s no reason you can’t do that. However, by definition a “wholesaled” house is being sold for cheap…you want to maximize value, don’t you? I think I would try listing it on MLS as a fixer-upper before wholesaling it. Call a few Realtors and see what they think of the fixer market in your area. Before you go into details, advise that you’re looking for a Realtor who works primarily with investors. Explain that you need to sell quickly and ask what they’d price the house at given your situation. I am sure it will be more than most wholesalers are willing to pay, and you might still be able to sell it fast.
As for a hard money loan, most HMLs will not loan money on owner occupied property. Moreover, is the house free and clear of liens? HMLs are not in the business of being in second position. It sounds as if there are liens if you are in danger of losing it.
If you can share specifics about your situation (the numbers), I bet the good people here will help you craft a plan that will help you out.
Paulbroni, thanks for your ideas and input. I truly appreciate it. I am trying my darnest to get out of a financial bind thinking wholesaling is the way to do it a bit faster. Then this idea happened.
Okay, here is the scenario, I owe approximately 68,000 on the house. ARV is approximately 105,000, maybe a bit more. Its going to need approximately 10-15,000 in repairs. A house right across the street is up for sale for 119,500(owner moved to another city to get married). House is in good location. So, actually, I believe could get more than 105,000 for my house ARV.
So what are your prospects for getting a second mortgage on the house for $15K and doing the repairs so that you can sell the house for $110K to $115K?
However, selling it as a handyman special is likely to net you only enough to pay off the loan, if that. If that’s good enough for you, go for it.
I’d try to find a contractor/investor who is willing to take a chance. Tell him that you need him to make the repairs and that you’ll then sell the house. Whatever is left over after paying the loan off and his out of pocket costs, you’ll split with him. There are a number of contractors who are also investors. You should probably run your ad on Craigslist.
If the house sells for $110,000 and your out of pocket costs for materials are, say, $5,000, you’d have about $30,000 left over after paying commissions and other costs. You’d get $15,000 and your contractor/investor would get $15,000, which is more than he’d get by getting paid a traditional way. And of course, he can put a materialmen’s lien on the house to secure his position.
Just trying to find a way for you to free yourself of the house, the debt, and still put a few dollars in your pocket.