Go for it??

New to REI. Want to begin by wholesaling properties. Found one! Seems to be a great deal, but would like suggestions how to handle. A few quick facts:

-Estate sale
-HUGE home owned by former millionaire
-Worth over $500K
-Home owned outright by heirs
-Been on market over a year
-Priced to sell now by heirs (motivated sellers) at huge discount!!!
-Vacant, but well-kept!

The home is located in a small town. There are no houses as large as this to serve as comps. Needs about 5K-10K (educated guess after visiting home) in updating.

Although ANYONE would LOVE to live in a home like this, we would prefer to wholesale it for quick cash which will help us land other deals. An investor could definitely get in with 70% equity off the bat.

As beginners, is this too BIG of a deal or should we go for it?? Been doing tons of research about this - comps, market value, RE sites galore, assigning contracts, etc. We are a little nervous about contracting on the property as it will be our first…

We’ve contacted an investor about the property and just want to know how to ‘package’ the deal so as to reasonably capitalize on this discount (An appropriate assignment fee, time frame for which to contract, etc).

Any help is appreciated!!


“Motivated Sellers”

“Huge discount”

My opinion - a half million dollar house is a “big meal” for a first timer and has a huge downside. The property has already sat for a year – ask yourself “WHY???” What if it sits for another year…can you handle the lack of cashflow?

What is your experience in REI? Anything at all? Own you own home?


Once we found out the home had been on the market for so long, ‘Why?’ was the first question we asked! :slight_smile: According to the realtor, the sellers are children of deceased parents who owned the home. The home was listed for over 500K for about a year, but now has been reduced to 349K. According to the realtor, the children want to settle the estate once and for all and appear to be extremely financially stable/wealthy. Apparently, they do not NEED the money, do not live in the area, nor do they want to carry the home any longer - taxes, etc.

I believe that although the house is worth what the children were initially asking (based on tax value, size, etc.), the average home size in this neighborhood is about 2200-2500 sft. (There are a few homes that are in the 3000 sft. range). Perhaps the size of the home (~6600 sf) compared to other well-established homes in the area has affected the sale price, DOM, …?

Although this will be our first attempt at wholesaling, we have owned 2 primary residences and a rental property.

We have no plan to carry the property for one month, much less a year. :slight_smile: (We will have contingencies in our contract). That’s why we are in the process of finding investors who may be interested in this and have more experience in this size property.

We’ve done our due diligence, we’ve run the numbers over and over … we just need to make a decision (either way) without continuing to over-analyze. We’re sure there are other opportunities awaiting…

Thanks for any advice. :slight_smile:

You need to take actoin!
Help someone in this site bougnt a 1.5 mil complex that is worth 1.8.

Help his friend that he refer in less than a few days put on contract and approved a property for 700,000 in foreclosure worth 1.2 mil.

They read it 136 times. Just do it! Stop doing the math. Find some one to help you take action! Good lukk

Thanks for the input. We’re new to this game, so we’re beginning to build our buyers’ list. Could someone point us in the right direction to find a buyer who’d be ready to move quickly?