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Updated almost 17 years ago,
Help needed for my first apartment wholesaling deal
Hi I'm a newbie investor,
My business partners and I got a 100% occupied 30-unit apartment complex under contract in Nebraska for about $650,000. During negotiation, we were able to add value to the property, and now we want to wholesale it out. Our selling price still gives the new owner 10.5% CAP with over 50% Cash-on-Cash Return. We got some potential buyers interested already.
Since it's our first time wholesaling, just got a couple questions for the pros.
1. I want to do a double-closing on this property since our potential profit will be more than $40,000, correct?
2. Should I be up front with the seller and selling agent that I'm selling the project off right away? because the potential buyers are from California and might want to fly out there to do due diligence on it.
Thanks!