Scenario Question (first wholesale deal)

I’m attempting to put together a deal involving a new construction condo, valued at $245,000. Seller needs $204,000. Is a double close my best option, or just assigning it over for cash. This is all still very new to me. What should I be looking for as far as profit?

Thanks in advance.

A lot of people are stuck with new construction that they can’t sell, you should do your homework first and see just how many other units are owned by investors in that complex that need out. Think about this, why did this guy buy brand new construction and turn around and sell it right away for supposedly $41k under market value? If it was truly worth $245k and easy to sell he would sell for that. I don’t think it will sell for near that in a million years.

What area are you in?

This is being sold buy the developer. I have closed many loans concerning his condo projects and he has moved on to another project. He would like to clear house on the remaining 5 units in this particular development. I understand where your coming from and at first I had the same thought, I had my appraiser run comps on the property and she came back with 5 comps showing that the value of $245,000 is definetely there. Her feeling was that she could easily get more. This is a very sound appraiser who does not push the limit on values by any means. So does that help???

Definitely sounds good providing the appraiser isn’t using old data. If you can get it for $204k and have a fire sale for $230k you’ll move it fast and be moving onto the next deal. I wouldn’t price it all the way up at FMV or risk having to wait a while to move it.

You were thinking I should assign it over at $230,000? I was thinking $215,000. By the way I’m in in Minneapolis, Mn.

This thing is brand new right? You’re definitely not targeting rehabbers with this one, it needs nothing and is ready for a retail buyer. Why not put an ad in the paper and try to get a retail buyer into it?

CONDO $15k below value, must be sold this weekend!
Open house Sun 12-4 122 Main St Anytown
All offers considered!

Bring with you a copy of the appraisal and all the forms you need. Bring a notebook to take down buyer info in case you come across something else later on that may be of interest to them. If you fail to get it under contract at the open house start hitting your wholesale buyer list and offer it lower if need be.

Makes perfect sense. Yes it is brand new. I must admit that I am gun shy, but you are helping me quite a bit.

Thank you.