Have a property under contract.. Now What? Los Gatos, CA

[Chris Lindmark]

Hi my name is Chris,

I am a newer real estate investor/wholesaler in the San Jose/Santa Cruz areas.  I have a property in contract in Los Gatos, CA.. It is a heavy fixer. I was wondering if this deal would make sense..? The property address is 21404 Madrone Dr Los Gatos, CA.  If anyone is interested in giving me more detailed advice on this property please feel free to contact me. I am always looking to expand my network, please feel free to e-mail me with your information as well.

Thanks for the consideration,

Chris Lindmark

[Hattie Dizmond]

@Chris Lindmark

Here's some advice...

1. 1.  You should be asking these types of questions BEFORE you tie up a seller's property.  You have a contract to purchase a property and clearly have no ability to or intention of purchasing it, nor do you know for sure whether the contract you have written is even something you can sell to another investor to ensure your seller has not lost anything.
2. 2. You have asked people to provide feedback on whether the deal makes sense. (Again, ask for a review of a deal BEFORE you do the deal.) However, you have provided nothing other than the address, which is best not posted in an open forum, particularly if the property is occupied, and a reference to the property being a "heavy fixer. This leads me to believe you have absolutely no clue what a rough cost of the rehab will be and only know the place is semi-falling down. You didn't mention what you have it under contract at or what the ARV on the property is. No one can possibly give you any kind of reasonable assessment of this deal without a bare minimum of information.

For someone to properly evaluate a deal they need to know:

Property configuration (i.e. bedrooms, bathrooms, etc.)

After Repair Value (ARV)

Rehab estimate

That's it. Three simple pieces of information. However, it assumes you know how to evaluate the ARV and come up with a reasonable repair estimate. My advice is go to the Learn tab in the blue bar and read the Ultimate Beginner's Guide to REI. Then buy J Scott's book(s) the Book on Flipping Houses & the Book on Estimating Rehab costs.