Took first appointment today! Do I have a deal?

[Ralph Garcia]

So I went on my first appointment today which came from a post card off my pre-foreclosure list. Still not sure exactly what I’m doing, but I’m comitted to taking imperfect action as I learn the ropes. Here are the details. Would appreciate any feedback or thoughts on your analysis. Deal or no deal? 

Property details: 4 bedroom, 2 bath, 1,440 square foot, SFR on a 6,700 sqft lot in Madera, Ca. Built in 2004. Home still has all builder grade materials from original build. Needs cosmetics updates only.

Rehab budget: 20K 

Amount owed (including foreclosure fees/penalties) : 165 K

ARV: $220K

Homeowners are looking to cash out as mush as possible to help them get back on their feet. 

Thank you for your feedback, I truly appreciate it.

Best regards - A grateful wholesaling rookie! 

[Charlie MacPherson]

@Ralph Garcia  That deal sounds thin.  Are you certain of your rehab numbers?  

Also, don't forget to include carry costs and a safety margin for things you missed in your walk-through.

Carry costs are another line item you need to account for - lending costs, taxes, insurance and utilities.

Normally pre-foreclosures don't have enough equity to make a deal out of. If they did, they'd list it on MLS and maximize their sale price.