Deal analysis / overcoming fear of project

[Bart White]

A friend and I stumbled upon a potential wholesale / flip deal in the San Francisco East Bay. I have been reading the forums for awhile but feel ill-prepared to analyze the deal (1900's SFR in need of repairs) properly. I have some savings for a potential down payment / earnest money but the house needs quite a bit of work... cosmetic and otherwise. The seller has an agent but the house is still being cleared out of the former owner's belongings over the next few days. We came to help clear some things out of the home and became friendly with the seller.

Truth is, I don't feel prepared. We stumbled upon this and the home has not been listed on the MLS. No reports have been drawn.

I have a good rapport with the seller and honestly believe the person may take our offer before their agent lists it on the MLS. She does not have a very high opinion of the house or neighborhood and lives in her own residence in a different city.

I can’t stop thinking that I would regret not pursuing this.

[Eric Johnson]

Bart,

Start with the after repair value, search sold remodeled homes in the area that are comparable. If you're not sure, ask an agent to help you. Can you partner with someone who's more experienced? This would be a great chance to allow them to bring their knowledge of deal execution, while you soak up the process & get a cut of the profits. 

Personally, if I were you, I would bring a partner to the deal who has verifiable experience doing at least a couple flips. You don't miss the opportunity & you will learn a lot. Start searching in your area and start making calls if you want to line something up.