Wholesale Deal or No Deal?

[Darren Harper]

Hi - Mr. Newb here. I saw a property in my neighborhood that had a for sale by owner sign. I called and the owner said that he is selling the home for $375k. In my neighborhood, homes can easily sell for 410-430k. If the home is completely updated, homes can sell for 500k+. The owner did say that the home is move in ready and doesn’t require a Reno. He also mentioned that there is an unfinished basement which can possibly be updated add another room. Should I try to get a wholesale deal on this or are my numbers and criteria all off?

[Jaysen Medhurst]

I understand this is FSBO, @Darren Harper, but that is still "on market." Does the owner have it listed anywhere? Zillow, Trulia, etc. allow FSBOs to be listed on their site. If a wholesaler tried to pitch me a property that was just plucked of Zillow that would probably be the last conversation we had.

More importantly, have you verified the home's condition and level of updates? "Move-in Ready" is one thing. "At Market" is another. If the kitchen and 2 baths are functional but haven't been touched since the 60s those updates could easy hit $100k+ and there goes the margin for your buyer.