I normally do rehabs but I have a property that a friend of a friend wants me to buy. Its really not bad, it does need total rehab but I do those all the time. Anyway he only wants $5000 I figure its worth only $40000 after rehab. We could rehab it ourselves for $12000-15000. I am too busy to do it(full rehab) right now. How can I make this work? Sell to another investor? Just buy it or assign(however that works)? Thanks
If it’s a good deal like you think you can put it under contract and then assign your contract to another investor for a fee. Assignment fees can be anywhere from a few hundred dollars to thousands, it depends how much room for profit and how good of a deal.
At $5,000 would you consider purchasing it cash and holding on to it until you had the time to rehab it yourself. Otherwise, you could definitely purchase it to wholesale to one of your collegues for a couple thousand dollars. Even with the rehab that would end up at 50% of market value.
GET that puppy UNDER CONTRACT! Even if you did a quickie quick flip & made $3-$5K, that’s $ you didn’t have before.