First Wholesale Deal

[Christopher Alexander]

Hello BP members,

I have my first of 2 call backs from my yellow letter campaign. I literally sent out 5 letters 3 days ago and have 2 call backs. Both are FSBO's and one owes a small loan amount and the other is free and clear. The free and clear is selling for $1.7mil and is worth $1.9mil. Yes I am the guy who aims for the stars in all that I do. So I'm going to look at it tomorrow. Its on the water with a dock pool 3.5 acres 4000sq ft etc. So my question is how in the world should I go about this one. Should I wholesale it to someone or should I attempt to do a lease option to a high end lessee who can afford to put 3-4% down and pay rent there instead of the traditional 20% down most banks are asking. Her house has been on the market for 2 years now. Oh added details, I have a very deep pocket investor who I've linked up with seriously an unbelievable blessing so I'm wondering should I wholesale it to him. Any feedback is welcomed! Thanks everyone

[Hattie Dizmond]

At $1.7 million, I wouldn't think you have enough margin for any investor. You're at 90% of ARV already, and you haven't said anything about whether any repairs or updates are needed.

A lease option with a Sub 2 is probably your only option.  Although, I don't know what the Lease Option market at that price point would look like, and I would think it would take some time to locate someone like that.  You might want to consider simply putting together an Option Contract, so that you actually have a beneficial interest to market, and then exploring some of the more creative options.

In my opinion.  :)