How do I wholesale this out-of-state deal?

Question

Okay, story time:

I live in the LA area and know a fellow Angelino who has a property in Kansas City, MO. This gentleman's house isn't renting and he tells me how much of a burden it is. I check out the place on Google Maps and do a quick free Realquest search. Estimated ARV is $44,000.

Owner says it can be easily repaired for $2,500. I believe so too because the repairs he's describing are minimal. The windows are boarded up but still have in-tact windows throughout, place needs a new water heater, floors may need rebuffing. Really basic stuff.

It's kind of in a rough neighborhood so he agrees that he'd let it go for $27,300 (factors in repairs and my share). Great! Priced to fly, right? Well, trouble is, I'm in LA and so is he. I know where/how to market it but once someone accepts, how do him and I close with the buyer if we're not able to be present at escrow in Missouri? Also, what do you think of the numbers?

Sorry if this seems too basic of a question but I'm not familiar with the process and I'll continue to be ignorant if I never ask. I’m very curious how one deals with this situation. I’m eager to learn and I’d like to close this deal ASAP. What do you think?

Christopher Arias · Answer

Brady Hanna, would you be so kind as to message me your number? I'd love to get in touch and talk about this property.

Ray Orellano · Answer

@Christopher just a heads up I am very familiar with that area....I would say its a C- area. Good for Cash flow, not much of a market for resale or appreciation. As long as that's what your after then I would say do it. You also may want to look in setting up section 8 since that area has a lot of them.

Find a good property manager!

Good luck!
Ray

Find a good property manager!

Good luck! Ray

J Scott · Answer

I think I just responded to this question on Reddit about 30 seconds ago, but here it is again... :)

You don't need to be present to close on a real estate transaction. The title company (or closing attorney) can email/mail you the docs, you sign them in front of a notary and overnight them back. That's it.

Now, as for the rest of it -- finding buyers, getting them access to the property, etc. -- that's a bit tougher. But, it sounds like you're comfortable with that part of it.

Account Closed · Answer

Cool, good to hear your closing process shouldn't be too painful (being from out of state). Please keep us posted!

Christopher Arias · Answer

Hi Ray Orellano. The owner let me know that the area wasn't all that awesome which allowed me to negotiate a decent price for it.

Shelby Reed I intend to wholesale this property. The owner is very tired of it. Dealing with the property from out-of-state makes it more painful for him.

ARV: $44,000 Repairs: $2,500 Price: $27,300

Account Closed · Answer

I agree with what Ray mentioned above. Do you plan on renting for cash flow? Or are you intending to wholesale?

Christopher Arias · Answer

Hi Shelby Reed,

The property is in zip code 64130.

[b]ARV: $44,000 Repairs: $2,500 Price: $27,300[/b]

Pretty solid deal. Everyone has been telling me, including fellow Redditor J Scott, that I don't need to be present at the closing. Now, I feel confident to go ahead and market this to a buyer. It'll be a fun learning experience.

Account Closed · Answer

Hey Christopher - I live in KC, just curious what neighborhood is this in?

How do I wholesale this out-of-state deal?

How do I wholesale this out-of-state deal?

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