1st actual strong wholesale deal.

[Sean DuPre]

So I have my very first STRONG lead on a wholesale deal. I spoke to the seller and it was an solid call. They are interested in selling for the right price but for starters the home is in a trust and secondly needs al of the work possible. It’s boarded up, front yard needs to be re-leveled, back yard had about 5 tree stumps that need to be moved, drywall is still intact but cabinets were stolen from kitchen. Looking for some idea of a ball park number comps around the same bed/ba/sqft sold for 245-265. Any help would be greatly appreciated. This is the sacramento market. Definitely would like to know how to handle the home being in a trust situation.

[Jacob Sampson]

Well if comps are around $245k then you need to estimate how much the remodel work will cost, add 25% to that number and subtract it from $245k.  Then decide the acceptable profit margin (your buyer will want) and subtract that from the number you got in the first line.  Then figure out how much you want to make on the transaction and subtract that from the second line.  What is left is the maximum you can pay for the property.