1st Deal - Need Advice
I have a property that I can purchase for $35,000 - It's ARV is $42-45K . Would this be a better candidate for a wholesale deal to another investor and pocket the difference or a lease option? The property is in move in condition so no rehabbing would be needed. It would probably be flipped to a landlord.
I would not purchase a property that had only 7-10,000 in equity. You will not find an investor that will pay full value for the house either. As for the purchase price does it include all the fee's that go along with buying a house ie title insurance, taxes, court house stamps, insurance, ect. For a first time deal I would try to net atleast 20,000 off it so I could sit on it without being hurt if need be. But thats me.
Quote:
On 2004-09-30 08:46, handsomeprofit wrote:
I have a property that I can purchase for $35,000 - It's ARV is $42-45K . Would this be a better candidate for a wholesale deal to another investor and pocket the difference or a lease option? The property is in move in condition so no rehabbing would be needed. It would probably be flipped to a landlord.
Neither. If I were you I would buy a course or go to a seminar on wholesaling. If you put that property under contract for 30 days, you'll probably have nothing but an expired contract and lose whatever deposit you gave exactly 30 days later.
You dont even have to buy a course, find a wholesaler in your area, watch, take notes, and learn.
It's an easy business and it's fun. But when you put properties under contract with sellers, keep in mind they are putting all their faith in you that you will perform as you laid it out in writing. Sometimes whether or not a seller sells their property can have a huge effect on their lives.
Learn the basics, watch the pro's, learn some more, take action, and the next time you're putting a property under contract let it have a positive effect on both you and the seller.
JB
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