need advice on this deal

I have monitored this site for over a year but have never posted until today.
I have bought and rehabbed several homes over the past several years and am about to do it again, but need some advice on a wrinkle that just came up:

bank-owned home that I put under contract for 57,500. the home needs a full rehab. My financing is a construction loan. Upon completion, my intention was to rent out the home. I am tired of selling them and this house is in a great rental area. (it will rent for 1200). Total cost to rehab is about 35k.

This was my plan; here is the wrinkle:
I have been to the house 4 times now to walk through the house with my trades. Each time that I am there, there have been others stopping to look at the house. The MLS hadn’t been updated to show that it was under contract yet. Last night, a gentleman stopped to look. I explained that it was under contract and what my intentions are. He asked me if I would be willing to sell it to him as-is.

He offered (cash offer, no financing required) $68000; no agents to sell to him (it is a solid project for the area).

What do you all think about this? On one-hand, I think that it is a great project that would put me where I want to be. On the other; there is money to be made without having to swing a hammer…

Also, I have never done this before, and don’t understand the mechanics of how to set up a simulaneous closing…Obviously, I know my way around a purchase agreement, so writing the deal is easy. My closing is set up at a law office; maybe they can help?

Give me your opinions, folks. I need a sanity check on this.

Go ahead and put the deal together and if it falls apart for any reason, then go ahead with your initial plan to rehab and rent it out.

You haven’t done any work yet and he’ll pay you $10,500 more than you paid for it? Have you even closed yet? It doesn’t sound like it since you said you have it under contract. Just do a double close. That’s probably the easiest $10k you’ll ever make. You didn’t even have to look for a buyer to wholesale it to.

You didnt mention what the home will be worth after rehab, that is kind of important to know. If its only worth 100k then go with his deal for sure. Dont waste you money on a double closing though if you dont have to, there are other alternatives

What are you doing here talking to us? Go find the end buyer, assign the contract to him and get your money!

This is not a very good rental, with break even cash flow. I’d sell it for sure!


Thre seems to be a lot of activity. Make sure they don’t know something you should?? $10K is nice, but people don’t give away their money for a reason. How much will you have left after (all) closing costs?

He can assign it and not have to pay any closing costs.