Hello Ya’ll! Here is my story:
My brother owns a home that’s on the market but needs lots of repairs. His Realtor has an illusion that he might get close to 120K, I don’t see how he came up with that number. The house needs some serious repairs, a/c needs to be replaced, ceiling in garage needs major repairs, kitchen and bathroom need to be updated, and haven’t even talked about all the cosmetic work that it needs. I’m no expert when it comes to evaluating repairs but I would assume about 15k. I doubt that a homebuyer off the street will commit to a mortgage of that nature and do repairs. I think only an investor will be able to take this house off of his hands. The only catch to this deal that might not make it duable for me to wholesale is the fact that I’m one of the owners of the property. Let me explain, my credit was used when I was in college to qualify for the loan along w/my mother’s. I never paid any mortgage or taxes on it so rightfully so I will not be receiving any of the proceeds once it sells. So I figured since I’m getting in the business of wholesaling anyway, maybe I should try to make this one my first. But since I’m one the owners, I’m not sure if I’ll be able to collect the wholesale fee. I’m not sure of the arv of the home (a real newbie) but a house down the street sold for about 120K. Do you have any suggestions? Do you think it’s duable? Assuming that the cost for repairs is around 15K, what do you suggest the top offer should be when wholesaling it? what should be my fee be if I were able to wholesale it? I know it’s alot of questions, but if anyone can help me is you guys ;D! Any feedback is greatly appreciate it. Thank you…
p.s. the house is paid off by the way, i’m sure that matters when plugging it in one of the formulas. I’m just not sure how the formula would work :-, please help!