Sweet deal..Best way to maximize profit??

[Shane Schaetzel]

I have a great dillema on my hands.

Nice property in Wisconsin.

90% remodled 3br / 2 ba

Comps from several agents and websites in 95k-100k average range.

Property can be purchased for <30k.

My initial intent is to contract the property and repackage it to an investor (wholesale). I would price accordingly around 40-45k. The property needs only cosmetic work.

Is a 10-15k spread asking too much? I am still leaving quite a bit of value for the end buyer here. Thoughts??

The reason I ask of course is to maximize value..Any other suggestions on creative methods to accomplish this?? The owners are pretty much open to anything.

SFR in a nice neighborhood...Owners want to move out of state.

Thanks in advance

[Jon Holdman]

Lets assume you're $95K ARV is correct. You need to be absolutely sure, but lets go with that.

Lets assume it needs $10K in work. You say "cosmetic" but also say 90% remodeled.

You should be able to find a HML who will lend you 65% of ARV - that's $62K. You need $40K to buy and fix, plus another $6K for the hard money and maybe another $3-4K for closing and holding costs. So, you're into it for $50K.

Sell it retail for $90K with an agent. Pay some seller commissions. Net $80K after the commissions and costs. Pay back the $50K.

$30K profit.