Help with a wholesale deal

[Dave Becker]

Good Day Everyone,

I am looking for some advice on a wholesale deal. I have been learning all I can over the past couple months on here and elsewhere. I have gone to the local REIA meetings and met investors and decided to find a deal. I found one, got it under contract, and now I can't seem to find a buyer for the deal. Please let me know any info that would help. I understand you have far better knowledge than I and maybe this just isn't such a good deal. Or I am going about finding investors the wrong way.

Here is the home I have under contract:

2bed / 2 bath / 1 gar 1690 sq ft
List was $70,000
Contract is for $59,000
ARV $110,000 - I am a realtor and have pulled comps for the last 6 months in the area. This house could easily be sold for more than this, but I am putting it low for quick sale. The average sale price in the area is $120,000.

Rehab cost $25,000 - I personally have not rehabbed a property so I went to an investor who is mentoring me on wholesaling. He estimated the repair costs to be this price. He currently is setting up a new company and is not investing at this time.

I have sent out e-mails to all the investors I have met through the REIA meetings stating that I have an investment property opportunity under contract. I have also posted on CL but with no picture of the property or address ( maybe that is one mistake). I have only heard from one investor so far and he said that he could probably only make a $5,000 profit after holding costs and his costs for his line of credit, so it wasn't worth it for him.

Any help would be appreciated. I would really like to make my first attempt at wholesaling work, but it isn't looking too promising. I am in Omaha, NE for anyone in the area who may have more knowledge as well.

Thanks,
Dave

[Jerry Puckett]

Hi Dave,
You say your contract price is 59k, but what are you asking ? It's a marginal deal at best with the given numbers:

110,000 ARV X 70% = 77,000 - 25,000 rehab = $52,000 . Your contract price is higher than this, and then you'll have your fee on top of that, I'm guessing 5k?, So you're asking 64k?

That may explain a lack of traffic to your door to snap this up. But since it is what it is, try this:

Being a Realtor, you should be able to look this house up on your local MLS. Draw a 1 mile diameter circle around it, and run a custom search to identify those properties that have sold for cash in the last year. Look up and call down the list of these buyers and tell them what you have to offer. I would start with the ones who have bought multiple properties.

I've done this before when my buyer's list fails, and it works exceptionally well.