Investor · Flossmoor · Member since 2016 · 38 posts · 12 votes
Hey guys! Definitely need some brainstorming help with this deal. My partner and I locked up a property from a wholesaler and upon the initial walk through we anticipated a 60k reno. Now we're looking at the reno being closer to 75k and now the numbers are just way off. We got it under contract for 110k and the current value is 150k as is and it's rent ready.I'm curious to know if we should just walk away and forfeit the EMD or maybe try to find another end buyer. Any input is greatly appreciated. Thanks
Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes
4y
Under contract at $110k. Current value $150k. Take 10% for selling expenses and you are at $135k. A $25k gross profit without major efforts. Why not close, list, and sell for $150k? What am I missing?
What are the other terms/clauses of your contract? Are you still in the inspection period? There is nothing left for you to try to get out of the contract? Or, else just be honest...
Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes
4y
Under contract at $110k. Current value $150k. Take 10% for selling expenses and you are at $135k. A $25k gross profit without major efforts. Why not close, list, and sell for $150k? What am I missing?
Under contract at $110k. Current value $150k. Take 10% for selling expenses and you are at $135k. A $25k gross profit without major efforts. Why not close, list, and sell for $150k? What am I missing?
Investor · Flossmoor · Member since 2016 · 38 posts · 12 votes
4y
@Adah N. There's a tenant in the property and she kept it very well maintained. We were adding a bathroom to the basement which is more than we expected and updating the kitchen and bath. The expected ARV is 235k