First Time Wholesaling (Newbie)

[Ridge Rees]

Hey everyone! Im from Utah and have been around bigger pockets for a few years and have always been into real estate but just recently bought my first deal a few months ago that I am currently house hacking. I recently became aware of another deal from someone I work with. Its a 3 bed 1 bath house. Definitely needs some fixing up. Im familiar with the house because I actually tried to buy it a few years ago but backed out because he upped the price. Me and the owner are on pretty good terms with each other and Ive mentioned buying the house off of him because he wants to get out of it. He doesn't want to list it, use an agent, or spend anytime at all selling it. He owes 123k on the house and he says he would like at least 160k out of it. The ARV on it 2 years was 155k. Does this seem like a good potential wholesale deal? I've never even considered wholesaling until I became aware he wasn't wanting to sell. I would buy to fix and flip but dont have the time or the capital to do so at the moment. Sorry for my ignorance but is there anyone that can point me in the right direction of what I can do with this house? How does someone judge the value of the house if you're not getting an appraisal? Can you get an appraisal without the landowners knowing what it is appraised at or is that shady? I really dont know much about this. Thanks again.

[Cody Steck]

@Ridge Rees congrats on the house hack! I have done this 4 times now, and it has absolutely changed my life. Best decision somebody could make, so you are on the right path.

As for the other home mentioned, It sounds like you probably need an updated ARV on the home. Whatever that ARV was 2 years ago is going to be significantly different today. If it truly was 155k two years ago, it could be 180k, or it could be 225k, depending on the area, condition, etc. I'd recommend doing some research on that stuff first (use an agent if necessary) and get an idea of:

1) What you can buy it for
2) Repairs needed and the cost associated (including things like hard money costs for somebody to flip it)
3) What the actual ARV is.

This will help you know whether or not there is room in the deal to wholesale it. You could also try to purchase it subject to, or on a seller finance or lease option. There are potentially a lot of things to do with it.

Hope this helps! Best of luck!