Here the deal, in phila, had lunch with a friend, she wanted me to look over her agreement of sale she just executed. House is way (40k leass than others, this house is total rehab though no idea why so cheap)way underpriced, great deal but she just got job transfer overseas the day after the contract signed, she wants a way out. I have no cash to do the deal, how do I find a buyer? Contract is assignable, there is no financing contigients, and not even down payments are filled in on the contract, the buyer and seller are sort of friends.
Do the deal!!! I bought a $750K office warehouse for $165K that needed $250K rehab. Do the deal!!! I wrote a hot check for $500 earnest money and borrowed the money to cover the check and more to close the deal and do the rehab. It is expensive to borrow at high rates but when finished I will have $200K equity and $4K a month positive cash flow. Do the deal and write a book about it. If nothing else get friend to assign contract to you and then assign to someone with bigger check book. LOL
Hate to take a shot at a veteran, especially since he’s got 2000+ posts and I still haven’t hit triple digits----yet. But the only thing I saw about this deal is that this house is 40k less than any house in the area. That’s great if it’s a 80k house then you really would be in a great position. But if it’s a 600k house then that 40k discount can disappear as fast as you can say cracks in the foundation.
Also, there’s always a reason a house is less than anything else in the neighborhood. It could be something obvious (the roof blew off in a storm) or not so obvious (the house is built on a sink-hole). Look before you leap. Don’t paralyze yourself, but make sure you stand back and understand why it’s so cheap. If somebody is missing something on their end, more power (and cash) to you. But I don’t know too many people, friends or otherwise, who would leave 40k on the table.
It is all good. You are right, it would not be worth the trouble unless it were a good deal. I only pay 70% of ARV after repairs even on keepers unless it is in great shape and rented and even then why pay retail.