Possible First Deal...need Some Advice
This would be my first deal . It was brought to me via a RE agent. Builder wants $7500 "down" and will sell one half of yet to be finished townhouse for $230K. The agent says I can then flip it for $250k. He can also get the financiing set up for me with 20% down. Is there any money in this deal after all the costs involved? And just what is this "$7500 down" anyway. The construction will be complete in about 3 months time. I have the cash I need to do this deal. Can somebody think out loud and walk this newbie through this thing?
Figure if you list it back with him maybe he may take the listing for 5% on 250K this totals 12,500 dollars just to sell it. 250-12,5= 237 a possible profit of 7000 but then if not paying cash figure closing cost+ time on market meaning interest on your loan. Min 3 months til you said is finish plus other costs that come up . Looks like a looser to me unless you plan to live in it. He looks to be making the profit from the sale not you.
If that is the way you see it as well, run, do not walk from this "deal". From what you have described, this is not a deal.