Seeking Advice on Wholesaling or Fix-and-Flip Options for Bank-Owned Property

[Michael Belz]

I’ve been working with a bank’s agent over the past three months on a single-family home listing in my area. The property is a full rehab, possibly more, and originally had restrictions from Freddie Mac requiring buyers to live in the home for at least a year, so I initially passed on it. However, about a week ago, I followed up, and the agent mentioned the price had dropped with no activity, and that the occupancy restriction would be lifted after 30 days on the market.

I made a low offer, and after some back and forth, they declined but then listed the property on the MLS for less than their lowest counteroffer to me. This price drop attracted attention, with three offers at asking price and six showings in just three days. However, since I was already negotiating with them, they allowed me to accept the newly posted price within 24 hours, which I did.

Now, I have two options: I could fix and flip it with an estimated $200K rehab for an ARV (After Repair Value) of $825K, having purchased it for $465K. But since I'm not an experienced fix-and-flipper, this would require hard money, additional out-of-pocket expenses, and a 3-6 month turnaround before selling. Alternatively, I'm considering wholesaling it for a quick $20K, but I'm not sure how to find local investors who can move quickly and close within the bank's timeframe.

I’d appreciate any tips or guidance on whether I’m approaching this the right way, ways I could improve, or how to effectively connect with local investors who could allow me to wholesale this property and make some immediate cash. Your advice and insights would be invaluable. Thank you!