Help! Contract or not on this deal!!

[Manuel Alexander]

- Property is 3 bed 2.5 bath in Omaha,Ne in a good area

- 1636 sqft

- Built in 1969

- Subject property was foreclosed on and bought for cash for 114k

- Seller wanted 140 currently at 130k and seller would sign

- Repairs 40k to be safe depending on the buyers connections in my opinion could be less.

-ARV between 190-210k

- This would be my first wholesale deal. I’ve talked to a couple of local wholesalers but only have a couple deals themselves.

If you’re wondering it is a local investor who purchased property herself but is tied up with other flips going which I got in contact with and she is willing to turn around sell.

Just looking for my first deal. Weather it’s $100 profit or not.

I’m aware of the 70% rule in wholesaling but through other successful wholesalers I’ve heard that number can be tweaked.

Any feed back would be great. I have many pictures as well! Thanks

[Barry Pekin]

@Manuel Alexander,

This seems like a pretty skimpy deal to me. The original investor is looking to essentially make a wholesale assignment fee on a deal that she isn't able to complete. And then you come along and want to make a wholesale assignment fee as well (even if it's only $100). Then, when you look at the original deal ($200K ARV, $40K repairs), using the standard MAO = ARV * 0.7 - Repairs, the MAO should have been $100k, and this doesn't account for any assignment fees. I think the original investment of $114k was too high, and now trying to sell it for $130k puts it into the non-deal category.