What would you do - Rural Property possible Wholesale

Bird Dogs, Wholesaling
1

I have been running TV commercials that are pulling leads from all around my core area (Charlotte, NC). I have a lead for a home that is about 1.5 hrs. away. Here are the numbers:

ARV: $60-$65k (Has appraised in Aug. '08 for $74.9K) but it’s difficult to find comps because it is in a rural area (not a neighborhood and about 5 miles outside of the city
Repairs: minimal; $5k (alot of updating took place in 2005)

I have negotiated this so far to $35k. It is listed with a realtor, so I will need to submit this through the realtor, but I have been negotiating directly with the seller, since she called from my commercial, she owns the home free and clear, as an inheritance this year.

I have talked to a couple of buyers around my core area, but no one really buys in that rural area. To make things more appealing, I have went back to the seller and let her know that because of the area, $25k - $28k is about the best I could do.

I am just curious how everyone here handles leads from very rural areas, where there are not great comps and there are not many buyers. Do you just stay away and try to buy where you have established buyers? If I can buy at $25k - $28k, I feel like there is a lot of potential.

Any thoughts are greatly appreciated.

Thanks,

Chris

2

I am having a similar issues… I live in a rural area. Have an REO property that could net 30k after basic repairs of about $7500. But, I am having a hard time finding a buyer. In fact I believe that there are several great deals in my area on a regular basis. I’d love to know how other people are doing in the rural markets.

3

I also have a rural house I found with 3 closest comps 5 miles away. All are in the 70,000 range. Arv is 70,000. repairs 10,000, I have offered excepted for 20,000. Brick house with 1 acre. This would be my first attempt at a wholesale.
How would you offer if I put an ad in the paper? Thanks for any suggestions you may have to market this house. I should have gotten investors or buyers already but have not. Will banks for reo’s take an offer that says {and or assigns?} :help

4

Anybody?