$525k Purchase, $700k+ ARV Louisiana Wholetail

[Travis Steinemann]

Hello BP! I have a website lead that I might need a money partner on. Here are the details: 

Seller Motivation: Need to sell quick for cash to cover family medical bills, and family comes before money so they are willing to take a significant loss.   

Purchase:$525,000

Repairs: 0/minimal. They said the only known defect is a crack in the driveway concrete. 

ARV: $700k+

Utilities (Annualy): $3,960

Taxes, insurance, HOA (annual): $4,865

Appraisal, inspection: $1250

Closing Costs: $5,000 per transaction $10,000 total

Realtor Fees ~$50k

This property is in Louisiana about 35 minutes north of Baton Rouge. It is a 4800 sf 4 bed 3 bath on 7.7 Acres with mature Cypress, Magnolia, and hardwood trees. There also are several cleared acres for horses. The house also includes a front covered porch and back covered kitchen/entertainment area. Also have a 600 s.f. building with new wiring, plumbing and insulation awaiting build out as apartment, office or workshop. There is a saltwater pool, tiki bar, stocked pond with a fountain and fish feeder, all 3 bathrooms were remodeled with 2 new tile walk in showers, and two new AC units. It does not require flood insurance and has never flooded. 

My experience is 8 wholesale deals, one fourplex successfully BRRRed and a single family also successfully BRRRed. I can buy right, but I have two other houses under contract right now so my cash is tied up (two more BRRRs!) I need a partner with cash to get this thing done, or potentially a hard money lender who can work fast. 

I already approached the listing agent from when it was listed in 2018, and she said she may have buyers ready now. I have a more detailed call with her tomorrow. I ran my numbers assuming it would take a year to sell, and we still make money at 3 points and 9% (my hard money guy is quoting me tomorrow too, but those are his usual terms). I would look for a different arrangement with my partner.