HELP NEEDED: Potential Wholesale Deal

[Michael Thomas]

I have a deal on the table and I really need some strong opinions and advice before pulling the trigger. A good friend has moved out of town and is a serious motivated seller. Her tenants left and she's just looking to get out. She agreed to work with me and wants whatever help I can offer. It is a tight deal but I'm wondering if I can pull it off. Its in a neighborhood with comps all over the place but there isn't a lot of supply. It is a good area. She owes 25k on the mortgage and is willing to sign a PA for that much to get out. The ARV is around 50k and it will cost around 10-15k to fix up for an investor to rent out. The rents in the area are from 650-750 per month so it will cash flow.

I know there is not a lot of meat in the deal but I really want to help my friend and get my first deal. Can anyone share their thoughts around this situation?

[Brian Gibbons]

don't do lease options on a rehab that needs work.

Buy it on sub2, rehab it, resell it.

Or do a jv with seller, get a spoa to sell the house, in the jv agreement she gets paid when it sells.  You get private money for the rehab.  Get a listing agreement before the work starts to sell it it at 95 per cent of comps as a listing price.