Wholesaling Deal Falling Apart >>> Alternative

[DSkrove]

Hey All,

Got a wholesale deal under contract for 60K with FSBO. The property probably should wholesale for 40K tops from what my investors are telling me. I have receive 4 offers ranging from 52K to 55K and cant get them to come up. So I am wondering if I could wholesale a C4D to a investor. I have 1 investor who is interested at 68K. I told him it would cost more for a C4D, he said OK. It would be a purchase price of 68K, down payment of 8K, interest payments of $700/mo, and I can get him a 30K rehab loan. He is interested cause he and his friend want to rehab a place and dont have the upfront capital. They are interested in a 6month or 12month term. Comps within .5 mile same bed/bath, within last 3 months are ranging from 130K to 150K. So since this is my first time let me know if I am seeing this wrong. I would get the 6K of the down payment 2K to the owner of the 8K, the owner only wants $400/mo payments, so $300/mo income for me, and nothing obviously at the back end when the buyer sells. But am I seeing this right? I think with these numbers the rehabber will still make 25K to 40K if it goes good or bad. Right?

Thanks

[hassansr]

Hey All,

Got a wholesale deal under contract for 60K with FSBO. The property probably should wholesale for 40K tops from what my investors are telling me.

your purchase price is too high, re negotiate to a reasonable amount

[DSkrove]

Thats my fault I forgot to mention that the property is under contract for 60K because that is what they owe on the property.

[hassansr]

you need to do the math to ensure that you'll get what ya want.

on at 68k sale there will be closing costs, taxes and other fees to consider. that said you wont be netting much.

[DSkrove]

I didnt know there was any closing costs associated with a Sandwich Option. There will be I am sure at the end of the term when the balloon payment becomes due. How much is usually incurred in transfer tax and such on a 60K closing