Is my first deal gonna be safe for me?

[Jordan Stevens]

Hi BiggerPockets. This is my first post. I am also a newbie in real estate, but I've been studying it for about a year now. I've decided to get my feet wet and go for my first deal.

Currently I'm in contact with someone who has a home under contract. They're asking about $60k for the home. It needs $20-$40k in rehab, and can be resold for about $120-$150k. Make no mistake, I like the house and I want to buy it. But there's just a little something I need to ask you guys. It has to do with the closing.

The contract holder is going to quit-claim deed the property to a new LLC with a name of my choice, and then sell the LLC for the wholesale fee. Could someone please explain how this particular closing process would work? I've googled quit-claim deeds and they seem sketchy, but I still don't understand them clearly. An explanation of quit-claim deeds and how they work, and how this one would work in this particular deal would be phenomenal.

Let me know!

-Jordan

[Josh Burnett]

Hey jordan I agree that seems sketchy. I'd also like to touch on your numbers.
If your going to be using hard money, I would definitely get a more solid number for the ARV. Always think of the worst case scenario to keep you safe
Ie: ARV-120k
Rehab-45k