Should I tackle on these 3 properties with Hard Money?

[Josephine S.]

Hello Bp community,

I would like to start off and say that we appreciate all feedback and advice regarding this post, that being said here is the lowdown of the situation. My husband and I are new to REI wholesaling is our exit strategy of preference. We have three properties that have been somewhat tough to find a buyer. We have had issues with zoning and a multifamily not being up to code, so we renegotiated the contracts to a lower price with the seller and adjusted the numbers. We have been networking every day at local REA'S and have blasted our marketing piece through local wholesaler websites and our social media outlets.

So, my question is should we tackle on this project based on having the properties under contract way below market value. Would a hard money loan be the way to go? We do understand the complexities of a hard money lender and know that they all vary. But I think this would be a great learning experience I just need advice from real estate investors out there that perhaps have come across this situation. Where they had properties under contract but not gained a lot of traction on wholesaling them and finding cash buyers. Let me know what your thoughts and opinions might be we have come too far to back out and every experience we have had through this business has been different in many aspects. We are here to learn just like everyone else has in this business.

Thank you all a Billion!!!  

[Jeff Rabinowitz]

If you have been "networking every day and have blasted" this deal over the wholesaler websites without finding a buyer, the market is telling you they do not want your "deal". If you borrow at a high interest rate to close on these properties and learn the market is correct, you will indeed be in store for a "learning experience"--it is likely to be expensive.

[Josephine S.]

@Jeff Rabinowitz, I completely understand where your coming from the market is not interested in these properties. Back to the drawing board to renegotiate the contracts to a lower offer. My main obsession is to get these properties of my plate. I plan to JV these deals as soon as I lower the contract price. Thank you for your advice.