Is this a Good Deal?

Bird Dogs, Wholesaling
1

Pretty motivated seller wants to sell his old home to move to his new home. Here are the numbers:

Asking - 200k (way too high)
Owes - 165k
FMV - 170k thru 185k

He has tennants living in the home now but don’t know what they are paying for rent.
Owner/Landlord says the house does not need repairs (as far as he knows)

My exit strategy is wholesale but can figure if the tennants will make or break this deal.

Any help will be appreciated. :biggrin

2

if you want to wholesale it you’ll have to figure out how much repairs are and get a solid idea of what the comps are. You going to try and wholesale it to another landlord or a rehabber?

Standard formula for figuring out Max Offer Price is ARV * 70% - repairs - profit.

3

Webweaver - now I am confused… In one line you said he wants to sell because he wants to move into his new house…

And few lines below you say that he has tenants living in the property…

So why he needs to sell again?

And what deal???

I wouldn’t be worried with the tenants… I would be worried with the numbers… Do you realize that he will probably not be willing to sell for less than he owes. And with FMV at 170k I don’t think you have enough spread to make it work…

Just my 2 cents… Good luck!

4

The only way that I would trust the numbers to work on this deal would be if I already had a buyer lined up and had the home under contract with the owner understanding that more than likely I would not be closing it.

I have made numbers like that work in the past but I had very motivated buyers, meaning the house that I had found for them was the ONLY one that they wanted.

Good luck