Seeking Some Guidance on an REO Condo Deal

[Nina Manns]

I'm a newbie wholesaler and I believe I've found a possible deal but before I sign the actual contract offer I want to know if I'm doing this deal correctly.

I'm working with a realtor to get an REO condo property under contract (it's bank owned by a local Credit Union), and they're asking $229K. I estimated the ARV to be $419K based on 4 other comps that have sold in the same community with the exact beds/bath/sq ft/yr built. According to my math based on the comps, I'm estimating repairs to be $50K; and I'm offering $5K less than the $229 asking price.

I've not physically seen the property (only virtual photos). But I talked with the realtor to ask why the property had been listed so long and what more he could tell me about the property. He advised that at one time the property had water leaks but now the entire roof has been replaced. The water leaks resulted in some flooring damage (bad beams) but they've been repaired. He mentioned the interior of the property is dark, not much natural lighting, and suggested flooring could be replaced with lighter wood, and more lighting added.

Also he mentioned there was some discoloration and warping on the floor in those areas where there had been water leaking damage before they replaced the roof but that there were boxes of flooring material in the garage that could be used to replace these damaged areas. I plan to physically look at property soon.

I'm really wondering if this is possibly a good deal? I mean could an End Buyer "flip/fix" this property? And if it is, do I have to have my company registered as an LLC in order to wholesale this deal?

Could anyone please provide some guidance and/or feedback on this for a newbie wholesaler who's taking action to undertake her first deal, but feels afraid.

Thank you.