Is This A Deal
I hae a wholsealer who has contacted me about a property he wishes to sell.
Sale Price: $140
Good Condition: $5k for Carpet and to pretty it up
My Appraiser says it is worth 200K
So we have about 55K to play with. What should I be looking into. I have an experienced investor who wants to partner with me on this. He can get labor and the jobs done real cheap.
The market here in Tampa is pretty soft. I need to investigate more if $200K is what we will be able to get.
I am checking out Hard Money right now as well as instituitional lending as I am a mortgage broker and that could make it less costly.
What should I be looking out for? Is this to thin?
If you can actually get the $200k then, due to the fact that you will have to do very little to realize your profit, it looks like easy money.
But will you actually get that price? And how long will it take to sell?
Personally I always try to buy for less than is asked. Try offering $120k- all he can do is say no...
Chris
Joblo,
Some "wholesellers" get control of a property but are unable to close, due to lack of credit and many other reasons. Their business plan is to move the property quickly to an investor who has the time and money to close on the property, do the repairs, and hold it for extended periods looking for a retail buyer. In order to find the investors they need in the short time period they have available (often two weeks), the profit margin has to be substantial.
Of course others say the property will be worth $200k when in fact they are having trouble getting the $140k for it.
Chris
Gotcha! Thanks Chris, I knew this had to make sense somehow .