Saw my first property on Saturday - Making first offer today

[Todd C.]

So in retrospect I probably should've made an in-person offer on Saturday, but I somewhat chickened out and took a different approach.

Heading into the showing, I knew that he valued his property at around $120K, which is currently what comps are indicating.

After looking at the house, I asked him "If you were to get an offer from an ALL CASH buyer, what amount would you be looking for" and expected him to go down to $100K. He said $105K. Now I said okay, let me take this back to my partners and we will be in touch by end of day tomorrow (today). 

I plan on calling him and stating that with all the associated costs including agent fees, closing, appraisal and inspection, on top of all the rehab work, I would need it to be in the $67,500 ballpark. 

I'm estimating the kitchen will need about 7K in repair work and another 2-3K throughout the house. I'm looking to wholesale this property for about $85,500, which would give the flipper about a 26-30% upside (after renovations). 

Is this a good approach? Any input would be greatly appreciated as I want to give him a call sooner than later. 

[Brian Gibbons]

Be careful w sub2, the due on sale clause may be a problem, when doing a sub2 always have a strategy to refi in your name or get a jv partner.  Same with a wrap.  Not for broke people.

Lease option assignments are always safer.

Don't get me wrong, I love sub2, just not for illiquid folks.