Wholesaling Distressed SFR Help!

I am in contact with an asset manager that is trying to unload a SFR in my area. This property was listed on the MLS a year ago and never did move @ the asking price at the time. Now the asset manager is asking for below the original listing price and or best offer. Sounds pretty desperate. Here the question that I have for this forum. A little dd has been made already and provided to me buy the seller, along with an appraisal dated 6/09. The current asking price is .32 from this appraisal in as is condition. Just wondering if there is anyone on this forum that could give me some good advice on if this is a good deal, and possibly how to structure it. Looking forward to hearing from you.

Good to meet you

I think a few of us could help you structure a deal worth doing…

Good Luck


Hey Michael,

Thanks for getting back to me. Here is the deal. As mentioned before asset manager looking to unload this SFR for about .30 on the dollar according to recent appraisal issued on 6/09. I am looking to wholesale this property to my end buyer, but just wondering if that appraisal is a good bargaining chip to use for my end buyer purchase criteria. Recent comps in this area are a little funny. Meaning there are some that supports the appraisal and others that suggest that the appraisal may be inflated. Walking into a property with such equity built in is a little unusual for me. Which bring me to the question whether the appraisal is a good indicator to the actual as is value of the property? Would appreciate any input.



The easiest way to find out what a property is worth is to call a hard money lender and ask them for an equity loan… They lend 65% of their appraised value and they rarely are off, if they are its on the low side.

Their appraisal is free and not a formal appraisal to suit a traditional lenders criteria. But in your case a great bench mark.

BTW if you’re in position, after their appraisal, to buy at 30 cents and they will loan 65 cents… Need I say more?

Great job


The appraisal fee is very unpredictable these days and it’s tough getting consistent data. However you can try a few get a few BPOs and make educated adjustments if need be.

Mike has a good point about HML, however most will require pre-approval etc before they waste time doing an appraisal for a deal that you may/may not use their money for. So be aware of that. An appraisal doesn’t cost too much money and if you are BUYING RIGHT that cost should be offset by your profit margin.

Happy investing.

I wouldn’t rely heavily on a BPO. In one of my modules I teach how to determine value, when to buy and when to fly… I suggested the HML approach as a very good indication of value, although on the low side.

Another nice thing about the HML who actually lend on an equity position is that they see the investor market place much clearer then most new investors do. So they instantly can give you reason to celebrate or tell you to punt…

Good luck.


Thanks Mike and Kamere for your advice. I’m not clear on your suggestions. This deal is a wholesale flip, I will not be needing a HM Lender for the purchase. I am just not sure on the true value of this particular property because the appraisal sent to me from the Asset Manager is dated on 6/09 and in my opion it is high for this particular area in my market. ARV…ARV…ARV? How is this determined as a flip tool to my end buyer(s). Comps are all over the map. Should I use the previous appraisal as a ball park figure for the ARV? As mentioned before the list price is about .33 cents of the appraisal done 6/09. Thanks again for all your help.


Mike and myself were sharing ideas on how to determine the value of the property accurately, so you can move forward. That should be your exercise, to determine the FMV so that you know that your numbers and projections are solid. Also in this market an appraisal dated 06/09 should be reanalyzed; at least i would.

Kamererealtygroup, LLC

Thanks again Desmond and Michael for your advice and wisdom!!!