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Updated about 15 years ago,
Should I send this deal to my buyers list?
So as some of you know I'm a newer wholesaler and I've been working hard to build a buyers list. At this point I have roughly 25 names and I've worked hard to screen out tire kickers. It's also important to me that I don't harass my buyers with useless deals. I hear that complaint from them all the time and I'm looking to send them prime deals where all the numbers hit perfect every single time. With all that being said...
Today I got a call from a fellow wholesaler who sounded really motivated to unload his property. It's in Lawrence, MA, an area I'm not particularly familiar with. It's a two family, 4 bed / 2 bath, 1750 sq ft, built 1904. Apparently in need of $2.5K of repairs ("repairs not necessary" according to him) and each unit is estimated to rent at ~$900. He's pricing it at $125K with $1K gift card to home depot or lowe's. Below are some comps:
1)3/2 1,962 sqft 1925 sold07/30/09 dist.0.91 sold $238,400
2)3/2 1,802 sqft 1950 sold07/28/09 dist 0.79 sold $189,900
3)4/2 1,818 sqft 1910 sold08/31/09 dist 0.34 sold $160,000
4)4/2 1,930 sqft 1910 sold08/12/09 dist 1.72 sold $125,000
5)3/2 1,874 sqft 1915 sold10/01/09 dist 0.69 sold $85,000
6)4/2 1,866 sqft 1900 sold10/09/09 dist 0.22 sold $131,000
7)3/2 1,604 sqft 1900 sold08/12/09 dist 0.23 sold $59,900
8)4/1 1,596 sqft 1900 sold10/13/09 dist 0.42 sold $127,000
Clearly it isn't priced low enough. Do I go back to the wholesaler and give him a number I'd be willing to offer it at? If so, what number would you guys throw at him? I was thinking something around $85K. Or maybe I should just throw it away...