Can I wholesale my current deal in San Diego??

Question

Hello! I am a newbie investor & currently have my first home under contract in Poway, (San Diego County) CA.  I am hoping for some advice on whether or not I can wholesale it.

Single Family home: 3br (optional 4br) 3ba, 1,638sqft, .43 acre lot (fenced), RV parking & zoned for horses. Built in 1959 with renovations made in 2007, including new electrical throughout. The interior is in really great shape, little to no work needed. The exterior is in decent shape, the only thing is, its a dirt lot, little landscaping & cement driveway needed, depending on buyer. Similar comps in the area are going anywhere from $550,000 - $580,000. I currently have it under contract for $527,500. If this is not a good wholesale deal, can anyone recommend what else I can do with the property, rather than throw it away. Seller is not open to a Lease Option.

Bruce May · Answer

I'd have to agree with @Tim G., this is not a deal. In fact it looks like it's the amount the seller would net if they listed with an agent. Let it go.

Tim G. · Answer

Not a deal, but using the 65% rule here won't work.

I wholesale deals here in the 80-84% range all day long.

You'd need the Poway deal around 400-420k is my guess.

Emma Chen · Answer

Agree with Tim Gordon $527 is retail price for decent house in Poway.

Briar Brazelton · Answer

Hi Danny,

They had purchased a larger home in the area, and were hoping to avoid having two mortgages. After I negotiated a price with them, based on their original listing price, I noticed they had dropped their asking price.

Danny Chan · Answer

What was their motivation?

Briar Brazelton · Answer

Thank you guys. I've definitely learned a lot from this, and appreciate all of the feedback. Can't learn from your mistakes with out making 'em :)

Thanks again, you've all been very helpful.

Jade Davis · Answer

Love to read these posts!

Briar Brazelton · Answer

Thank you all for the feedback, it's very much appreciated!

CK Hwang · Answer

Hi Briar, my opinion is that the deal is too thin to wholesale. I would recommend just selling to a retail buyer.

Briar Brazelton · Answer

Thank you very much for your reply Brian!

Can I wholesale my current deal in San Diego??

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