Got My First House Under Contract Today! Next Move? ...

[Wayne Brault]

Hello everyone. As you can see, I got my first one under contract today. I feel like I got it for a good price, and had a friend/realtor look at it with me. The issue is, it was left in horrible condition. Mostly appears cosmetically and junk items left both inside and outside of the property. Not like hoarder status, but just lots of 'junk'. I believe there is a good $60k-$80k of meat on the bone with the ARV. Maybe more if one can source good deals on materials and labor. But she's a big project and needs love. It has an RV area with septic on the property, which is nice. It's close to the freeway, is on a pretty big lot, nice big front and back yard! A very nice quiet country setting. Even potential to trim some medium sized trees for a valley view in the back!

My original idea was to wholesale out the contract to another investor. The market here in the Longview - Kelso WA area seems to be doing pretty good. But then I wondered if I should clean up the property, remove the unbelievable amounts of 'stuff' left behind, mow the property and give it all just a little 'sprucing', if this would;  1. Increase the potential of buyers to sell the contract to and quicker (more presentable) 2. Increase the value of the contract itself  3. Possibly say, hey, I can just do this project from A-Z with the right backing/funding behind me (Not really in the position to buy and invest in the materials, but may have access to the funds) and tackle my first official flip project? I do have quite a lot of experience being a General Contractor.

I'd love to hear some feedback. Thank you all.

[Max Keller]

@Wayne Brault

Great job Wayne! I remember my first deal, and I ended up wholesaling it. I am so glad I did, when I started, I did not have the background I have since developed. The cash conversion cycle is essential. The faster you can turn your money the better. What I do is I calculate the estimated profit I would make from a fix and flip. Let's say I would make $40K. If I can wholesale the house for $20K, I will do that all day. There will be other houses and the return on time invested is much much higher. You only get so much time. On my first wholesale deal, I did what you mentioned, and I spent a small amount $2K fixing the house up to make it more appealing. Sadly I think I wasted my money. It depends on who you are selling the home to. If you are wholesaling to someone with experience, you don't need to fix it up in my opinion. Good luck.