This might be a great deal...help?! (Noobie)

[Jeremy Diaz]

Hey everyone this might be a very good deal that I got and it’s my first so I’m hoping I can get some input. Any useful information is greatly appreciated! So here’s my scenario.... I found two properties that aren’t finished being built. It’s about $120k to finish both properties and the gentleman emailed me the appraisal amount which is close to $1,000,000 also with the plans to finish the home and what not. Approval by the city and everything! It seems like this is a great opportunity! Forgot to mention they’re selling for 350k and 450k. But the fact that it’s not completely finished throws me off. The seller is a homebuilder I believe and these 2 properties were his own side projects....but he ran out of money. What do you do? Forgot to mention I plan on wholesaling it...

[Justin Purcell]

I'm new as well, but I have some questions that may help clarify things.

Is the appraisal $1m for each property, or for both together? If it's combined, which I suspect to be the case, you're looking at $920k including construction for something appraised at $1m. This could be an amazing deal or a terrible deal depending on other factors.

Who is estimating the remaining construction costs to be $120k? The person you're buying from or a third party?

How long do you expect construction to take after you make the purchase? i.e. for how long will the properties remain vacant?