Possible Wholesale deal in Md.

[Brian(MD)]

Hi,
I just got a hot lead from one of my bandit signs. Here's the details, this is a 2370 sq ft. house on a 1.30 acre lot, I haven't been out to see the house yet (I did drive by the house) but the owners description it seems the house only needs about 8-12k in repairs. This is an older well kept house in a great country area. So far I have the "Fair Market Value" at about 220K, it could be more. The house is gonna foreclosure at the end of December, so this is her motivation.

What she needs to make the deal work is her 53K mortgage paid off, 16K in bills paid off and $$$ to buy a trailer to move into, which she believes is anywhere from 25K to 49K, so her asking price is from 94K to 118K depending on how much extra she can get out of the deal to get a trailer.

I'm still a newbie so I'd like to get the opinions from the experienced wholesalers and how would you proceed? Thanks for any info!

[Gold River]

Hi,

    You have a couple of different options: Either option I would offer the $119k if you verify condition (Repairs) and property value!

First if you have $27k you can get hard money for a new 1st and buy the property outright to resell provided you can carry the $1,425 monthly payment plus expenses and overhead until you find a buyer!

The other option is contract it and give your self 60 days for close of escrow prior by at least 7 days from the actual foreclosure date and see if you can advertise and find an owner occupied end buyer who would buy it for say $179k for quick sale! (Priced 15% below your estimated FMV plus repairs)

You would need to come down with a qualified buyer in about 15 to 20 days or your end buyer won't have enough time to complete inspections and their lenders underwriter have time to fund and close!

Either way don't get greedy and just give her what she wants at $119k, there's still plenty of room to walk away with an estimated $50k!

Good luck,


                 GR

[Brian(MD)]

GoldRiver,
              Thanks for responding. I'm trying to meet with the seller ASAP to get the contract signed, hopefully this Saturday. I did have a realtor pull MLS comps, with this being in a country area, not a city area, this house is down a quiet country road it was a little harder to comp out this house. My realtor did give me a legit comp where a similar house, same age, size, same lot size but in great condition that sold earlier this month 5 miles away, 10/11/11 to be exact sold for 327K, so I'm gonna give the ARV a little higher than 220K.

I love how you listed my other options, however, my goal is to get some quick cash and move on to the next deal... I'll keep this thread updated!

[nsu1997]

Hey Brian, what part of MD is it in? I live in PG and I've successfully done exactly what Gold River outlined (ie sell a fixer-upper to a retail buyer). I also have a pretty big buyers list (mostly PG & MoCo). I may be able to help depending on where it's located.

[Brian(MD)]

Nsu1997,
               I am in Carroll Co. If your familiar with Owings Mills, Reisterstown I'm just a few minutes from there. I'm meeting with the seller at 9 30 am today...I'm looking for any help I can get to get a buyer once I get the house under contract. Of course I will be putting out handwritten signs, craigslist, local paper and networking to get the work out but I wanna let the world know I have a great deal, when I get it under contract though. I'll let you know what happens later today. Thanks!

[uptowno]

how did this go sat brain ? keep us up to date

[idhomebuyer]

Yes, how did this deal turn out?

Nsu1997,
               I am in Carroll Co. If your familiar with Owings Mills, Reisterstown I'm just a few minutes from there. I'm meeting with the seller at 9 30 am today...I'm looking for any help I can get to get a buyer once I get the house under contract. Of course I will be putting out handwritten signs, craigslist, local paper and networking to get the work out but I wanna let the world know I have a great deal, when I get it under contract though. I'll let you know what happens later today. Thanks!