OBVIOUSLY a good deal............ right?

Question

Hey I'm new to this wholesaling thing, but I think I found a property out in Zebulon, NC that I really want to get.  The terms are looking like "an assignment with $5K earnest deposit, and possibly $63900 with 21 days to close".

Can someone else check this out and tell me what you think?

Here's a link to the property.

http://raleigh.craigslist.org/reo/4130963271.html

Aaron Mazzrillo · Answer

I have a hunch that Mike, from the ad, knows what he's doing. He's got some great pics of the property, but not the problems. I'd call that "selling the sizzle, and not the steak."

Jacob A. · Answer

Alexander,

I'd like to preface this with the fact that I've lived in Raleigh my whole life and I'm pretty familiar with the Zebulon area.  This seems like an ok deal.  The biggest problem you are going to have with it is the fact that it is out in the middle of nowhere.  #1 it's going to be extremely hard to pull comps on it and #2 whoever ends up with it is going to have an extremely hard time finding the right buyer.  For me, as a rehabber, to take on this kind of risk I'd want to see a larger spread in the deal.  That's just my two cents, but then again I tend to be on the more conservative side.  Best of luck!

Jessica S. · Answer

Hi Alexander,

I am new to Bigger Pockets but not to real estate.  I'm pretty sure that there is no way for you, or anyone probably, to know if that is a good deal just by looking at a Craiglist ad.

I read your other post and know that you are new to wholesaling.  Have you made connections with investors or anyone who might be interested in buying this property? If you have, that's a great first step.  If not, I hope you will think very carefully before trying to put this under contract.   If you tie it up and then are unable to find a buyer you could make life difficult for the seller.  I know you're eager to get started but you don't want to cause harm in the process, do you?

Thomas Quinn · Answer

You need to check comps and to find out how much work it needs before you know if its a good deal

OBVIOUSLY a good deal............ right?

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