Wholesale/Flip Hybrid? Doing repairs before wholesaling..

[Kevin Gibson]

I have flipped 10 houses in the past couple years, and I have 4 projects going on right now so my funds are tight, but I came across a weird deal that I can’t seem to find any 100% clear research or guidance on. I’m a regular flipper and have never wholesaled a deal before but......  

I have a friend who wants to sell me their house for 100,000. (It’s as is value is 140,000)

I also have a couple realtor friends with clients with budgets of 130,000 that want to buy the house but can’t because the floors are not complete and a few other things that won’t qualify the property for the type of loan the buyers are getting.

The idea is for me to sign an agreement with seller for $100,000, make all the repairs needed, and then assign my rights to the new buyer with an assignment fee of $30,000 minus all the closing costs.

What happens if the new buyer poops on the deal and I lose all my repair costs I put in?  And earnest money? And can I even wholesale like this to a real estate agent? 

It seems riskier but I trust the seller enough to give it a shot!

Any advice on how this could possibly be done would be much appreciated!

Thank you,

Kevin Gibson