Owner contacted me about buying his house, a 3bd/1.5th in a decent neighborhood for the South side. He claims it is paid off, inherited from his mother. Got a realtor to pull comps for me, house comps at about 45k. Owner claims house was remodeled last year and needs nothing. Im thinking of offering 70% Of ARV minus my assignment 7k minus about 5k for repairs=$19,500 or no more than 22k.
Does this sound reasonable? If I he won’t take that ammount is there any other way to make money on this?
Any help or advice is greatly appreciated…
What do you plan on doing with the house? Flip, wholesale, rental, etc? I would take a look at the property first Somebody’s idea of “remodeled” could be much different than yours.
I plan to wholesale it, Im going to soft pass him first and let him the range my offer will be in before I drive an hour out to him.
Deal is dead. Guy wanted to much, not motivated enough. Ah well, on to the next!
Ok, this may seem obvious to those that have been around a while, but let me just ask for the sake of asking. So if this guy had given you a price that fit your model, would you have executed a contract? Great, but then what would you do with the home?
DO you have a buyer already in hand?
Do you realize the number of available properties out there make it easy for the experience and CASH READY investor to snag them up without agreeing to pay out 7k assignment fees?
Here is the rub on Wholesaling… you get paid by the BUYER, not the seller, so might be wise to be sure you have BUYERS first.
And yes, I am in Chicago, and yes VERY experienced buyer.