All Forum Posts by: Kevin C.

If you are using wholesaling as a strategy, this is definitely not a deal. You would usually use wholesaling as a means with distressed property, motivated sellers, or highly discounted property's. If he completely renovated it out, he would be selling a turnkey property (to a rental investor) or a dwelling home (to a retail buyer). 

Also since he renovated it out, it is already at ARV, so you can't really ask for him to be selling at a discount. The formula using .65 is showing the price at which (35%) equity would be taken out, in order for fixers/flippers to pull profit from.

If your end goal is to get the 10k difference from your projected ARV comps, I would go over the motion and figure out the COC return/ cash flow of the property. But even then if it profits enough, I would just keep the property for my portfolio.

Overall, there isn't a lot of profit to be made in this deal. He should just sell it retail value, which he seemingly is but that is just speculation. 

I wouldn't do it. They would be able to cut you out of the picture. Also to some degree it would be illegal depending on the state. Wholesailing is selling the ability to purchase a property (or the contract to a property). If you do not have a contract to sell, you would be selling the actual house. And if you do not have a license you could get into trouble.

It depends on the quality of the lawyer and their hourly wage. But I believe there are contracts on bigger pockets if you choose the pro feature. I also believe that those contracts were made and checked by attorneys who contribute to bigger pockets too.

I'm trying to find out the answer to an arrears question but I can't seem to use the search function within the sub-categories. So, If a property is worth 500k, has 30k in arrears and I put that under an assignment contract. 

How does the process pan out after that? What would crunching the numbers look like, with a fee of 10k for assigning that towards someone else? 

I believe what confuses me the most is how arrears come into the situation of messing up a good price for the buyer.

Thanks,