Wanting to wholesale a deal I purchased for 17,000. The ARV is 60,000. Is this a pretty good deal? I’m hoping to make at least 7,000 off this deal but I’m having trouble determining how much I should sell it to the investor buyer? I would appreciate all responses. Thanks alot.
Howdy Jmarc85:
More info needed. What is the estimated fix up cost and expected turn around. For an investor to pay $24K to you they will want a total cost in the area of $40K given the $60K ARV. This would make repairs of $16K an OK deal considering closing costs, holding costs, etc.
Repairs are about 7000 and the turnaround is about a couple of weeks. Holding cost about 3000 (3months) The owner does owe about 3000 in backtaxes that I’m pretty sure I would have to take care of. What do you think?
Howdy JMarc85:
Sounds like a great deal. Why not fix it up and resell it your self or with a partner?
It’s kind of complicated. I actually have a rehab project right now that i’m working with a partner on. It is a nightmare, working with the partner that is. I’m just wanting to get a few great wholesale deals to rake in the quick cash, that way i have a nice financial cushion to sit on before i take on my next rehab project alone. I was hoping from this potential wholesale deal, I could make at least 7k or more for a great starting point.