How to market a potentially large project to a rehabber

[Markeilsha R.]

I asked this in another section, but it may be misplaced since it really is a marketing question:

I spoke to a homeowner today who has a small (900sqft) home for sale that needs about 15k-20k in repairs by my quick estimate ($20 per sqft). The property is in a great neighborhood where people rarely sale once they buy, maintain the property really well, and have a phenomenal schools district. Trouble is, the owners won't sale for less than $48k with an ARV $61. I was looking of ways to market this as a wholesaler because the home and it's placement has lots of potential. It is on a double lot. Homes that are 1100sqft 3/2 usually go for twice the amount (sold). Would it be feasible to market it to a rehabber on the potential? If they were to add onto the property 200-300sqft they could double what they'd pay from me on the deal, although I have no idea how much it would cost to do that in upstate NY.

Do you think I can market on this potential???

[Ben G.]

If you want to become a credible and reliable wholesaler that is taken seriously, then my first piece of advice to you is to not market properties based on their "potential."  

Buyers have specific criteria, and it sounds like you already know the criteria your buyers follow when purchasing houses in your area.  You don't want to become the wholesaler whose phone calls and messages get ignored when you think you have a deal.  Only market real deals to your buyers.  At this price, if your numbers are accurate, then this is not a deal.  However, don't give up just yet!

@Shera Gregory  makes a great point when she says that you need to put some effort in educating the homeowner on the reality of their house.  

If the ARV is $61k like you say, and if the homeowner wants $48k, and the house needs $20k in repairs, then it sounds like the homeowner needs to invest their own money into some repairs. If the homeowner is not willing to do that, then it is your job to educate them on why you are their next best option. If they disagree, that's alright. Follow up a few months later and if they still haven't sold, then they should be more motivated to sell.

Hope this helps!