PLEASE HELP ME CLOSE MY FIRST DEAL!

[Camillia W.]

Hi there BP community!

 I have a pressing issue that I could really use you guys' as insight on. I have a childhood friend whose mother has a house that she is willing to sell me I'm not sure  which direction  I should approach the situation.  I want to make sure that I present the deal as best as possible:

1200 square foot  

3 bed 1 bath  

located  in up-and-coming West Philadelphia  near the train .  

Built in 1925  

Property Value is around 70Kim

Comps have sold from 120,000K-- 1.5 Mills.

I also work with a Contracting Company and I'm wondering should I get it under contract and put together an exit strategy myself to secure hard money or JV the opportunity. Please help point me in the right direction!

[Natalie Kolodij]

Comps have sold from 120,000K-- 1.5 Mills.

This is so far off. Accurate comps wont have 1.3 million dollars in price difference. 

You need to pull very similar houses, within a mile, similar condition, size, bedrooms, same neighborhood that have sold within 6 months preferably. A realtor should be able to help you pull these. 

Then you need to figure out how much work it will take to get the house to the same condition as those comps. 

Then make an offer based on that. 

So if accurate comps end up being $200k for the house fixed up

but it needs $50k of work

And she wont take any thing under $140k for it

There's no deal there. You need to back into what you can offer for the property to have it be a deal. 

You can also run cash flow analysis to consider if it would be a good option as a rental as well.