Out of state owner

Bird Dogs, Wholesaling
1

I am in talks right now with an out of state owner (call from my direct mail marketing)
The property is in my city, but the owner is in NC. I want to wholesale the property.
Would I just email the contract to the seller?
Also how would I close if the seller is in another state?

I have access to the MLS and can get comps

the property is worth 75k - 85k fixed up but needs repairs
they owe 61k on it
Is this even a good deal?

Thanks in advance

2

Hi,

For out of state owners you can fax the contract offer as your signature is required to make a legal offer. Closing with out of state owners is easy as a title, escrow or attorney closing company can be sent closing documents and signed right in the sellers home town. Closing documents are overnighted back to title, escrow or attorney closing company in your town.

You should have checked the comps before you posted this as FMV - ARV is extremely important to give you accurate advice!

What is repair cost’s?

Normally your looking for an average 30% discount before you subtract repair cost’s, so $59.5k is 30% minus repair cost’s. Now if you have a owner occupied buyer on your buyers list who could handle repairs it might be worth taking for what they owe, $61k and assigning it over to someone for $2k - $3k profit, provided it will still meet lending standards.

But to strictly wholesale it to another investor the numbers don’t work as I would have to get it below $61k to repair and still turn it for a profit!

                 GR
3

Thanks for the reply GR
I passed up on that one and am currently making a lot of offers on MLS properties

Love this site.

4

the numbers are not good for a wholesale deal. I’d most likely offer to take the deal over subject to and owner finance it out.

5

If I were you before I make any more offers I’d learn to identify what a wholesale deal actually is. The fact that you had to ask whether that was a deal or not means you don’t know what you’re doing yet. I admire your action but yeah lol.

Wholesaling is very low risk so you won’t really lose any money if you screw up, but you don’t want to be the guy trying to market a wholesale deal at wayyy above what any rehabber would even consider paying. Don’t be that guy.

Check out the podcast at www.flip2freedom.com totally free podcast with excellent info…start from #1 and work your way up.