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Updated about 5 years ago on . Most recent reply
Help With Wholesaling a House!
I have a unique situation that I need some help! I am under contract to buy a 3 bedroom house for 65K in June. I know Zillow isn't the best but ] Zillow states the value is 106K at the moment. This is a house that I am familiar with and has tenants in it currently. It is not a distressed home it is a decent rental. I would like to wholesale the house, because I want to buy another rental in a different city that I currently have one rental at. Let me know if my numbers are crazy, but I would like to make 25K off the assignment of contract. Where do I start to find a buyer? I appreciate the help!
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@Jared Mann There is a lot of information missing from your post. 1. Will the house still be occupied by the tenants in June? Are they paying market rent? 2. What repairs are needed? What is the cost for these repairs? 3. If you have until June thats more than enough time to get some real comps, dont rely on Zillows zestimate. 4. You say this isnt a distressed sale but why would the owner sell the property for 65k if its worth 105k-ish?
I dont think you will make a 25k wholesale fee on this house. Investors want to buy at a discount. If they want to pay market value for a property they can just buy off MLS. I think you need to analyze this deal properly and then determine if its wholesalable and what kind of fee you can charge. Dont just pull a number out of your butt or say hmmm it would be nice to make 25K. I would love to make 100K on all my deals but the numbers dont support that. You have more than enough time, run the numbers.