Buddy needs help

[Account Closed]

My buddy just put a house under contract and I think he really messed up, I don't want to tell him to get out of the contract though unless I know for sure.

Details on the house:

Market value: $68,990
Under contract for: $51,500
Mortgage: $30,000

Is this a bad deal or what?! I'm pretty sure if he gets the house for $51,500, add in a $30,000 mortgage, he's under contract for a total of $81,500 for a house at market value for $68,990?!?!

Even if the ARV value is $100,000, I just feel like the numbers are too close and it's too much of a risk. Any advice or comments? I don't want to tell him to get out of the contract because I am new to this, but I'm pretty confident that this is NOT a good deal, especially since he is just a wholesaler.

If it had been me, I would have tried to establish an ARV before anything. This person didn't seem motivated either. If he/she would've taken $40,000 or less for the house, that's when I would've jumped on it. But I just don't think this is a good deal. Am I wrong?

By the way, he wants to sell it fast for quick cash, not rent it out. Please keep that in mind when you answer. Thank you!

[PAUL ARNDT]

I don't know that this is enough information to determine whether it's a good deal or not, but the $51,500 should include the payoff of the $30k mortgage, shouldn't it?  So he should still only be the $51.5k into it.