First Time Wholesaling

[Thomasina Singleton]

I am Newbie and getting different information on how to do this deal...please advise, before I commit tonight.

I have a property I just looked at with the realtor. There is no mortgage on this property, clean title. The property needs to be sold very quickly before it goes into probate.

List price is $79,000.00.
ARV $173-194,000.00
No Mortgage
Cost of Repairs $35-40,000.00
My Suggested Contract Offer: $27,000.00 to the seller
My Suggested Contract offer to the rehabber - $112,450.00 (65% of the retail value)

Which is the best way to go with this contract?
Assignment and/or Double Closing?

[Jon Holdman]

Its worth about $72K to a rehabber:

70% of $173K ARV = $121K
$121K less $40K rehab = $71K

If its listed at $79K and is worth $133K as is ($173K-$40) what makes you think the seller will accept $27K?

Trying to pull down $85K (less costs) on this one deal seem pretty outrageous to me. See if you can get it for $60-65K, sell for about $70K and make a decent profit.