Subject to on an expired listing

[Joshua Hove]

Hello BP community,

I recently came across an expired listing and after looking into the property and running some numbers on the BP calculators believe this could be a very profitable fix and flip. The property has been on the market since July 2019 (4 months) and last sold in June 2018 after being on the market for the previous 2 years (since June 2016). I wonder if current seller bought in 2018 with intent to flip but didn't have the money, knowledge, or resources to follow through.

Asking was about $180k and comps in the area are over $300k. The biggest question mark is the foundation issues which I'm thinking at worst case would be around $25k to fix and then another $50k in rehab and freshening up. All in around $255k and ARV of $300k.

How would you go about contacting this seller and what do I need to know and do to get a subject to put in place?

Thanks for the help! Love this community!

[James Wise]

Originally posted by @Joshua Hove:

@James Wise Subject to is a viable business strategy in the right circumstance. This house for example is not an asset as it sits. The seller is unable to rent it out, unable to live in it, and clearly unable to sell it. It appears this home is more of a liability to the seller as it sits draining his/her savings. Cash may be one of the options I propose but I would also like to give other options hence the reason for this post. The asking is about $35k above what they paid for it in 2018 so a subject to at asking price would still profit the seller and allow them to get out of a bad situation. Any other "help" would be appreciated

 The seller was unable to sell it at the price they listed it at but no house is unsellable. Being unable to sell it and unable to sell it for x amount are two totally different things.