JUST GOT UNDER CONTRACT

[Kim Book]

Okay guys I need some help NOW! I was jsut notified by HUD that I am the winning bidder. I won the offer on a townhome 2 bed/2bath 2240 dartmouth Dr, Sumter, SC 29153 (you can see pic on Zillow.com) It is a steal of a deal. the market Price for the ones that have sold were 124,000, There are some lots still available for sale in the area and the lots sale for 34,000. I want to try and wholesale it for 70,000. It can rent for about $850 per month. I am quoting it low. Online rates show about 950/month for rental rates. My first wholesale deal.... I have been in real estate for over 11 years but as a broker not investor. Please I need some advice before I send my earnest money over on this deal. Ask me whatever questions you need, i will be so open, this is my first deal and I want to succeed in it. I dont have abuyers list or none of that fun stuff. I got the deal.

[Shaun Reilly]

If you can close on it and it sounds like it only needs a few thousand dollars in work why would you wholesale it rather than do that work yourself and sell it retail for $120K.

I mean you are a broker so retail sales are your bread and butter and much different than selling to investors.  Instead of making around $10K to wholesale you can look to make that and the rehabbers $30K+ by doing it yourself.

Now if we were talking a $100K full gut down to the studs rehab I would say take the $10K and run but if you are correct about what it needs you are talking $10K of easy stuff on the high side. If you even close on that ARV and Scope of Work, and list the resale yourself, you should be looking at making 3-4x what you would wholesaling if you rehabbed it (BTW I am assuming a 100% HML [good luck:)] at 3 points and 15% for 6 months and a 3% buyers agent commission in that estimate).