Try and wholesale it for $85,000 to a cash buyer. I don't think if you try and retail it that it would APPRAISE for what you need. I don't think a lender would lend on a house in that condition.(no appliances) What home owner would want it??
Here are the numbers based on what you supplied. By the way, Zillow is meaningless. You need comps sold in the last 90 days, currently listed comps and under contract comps from a realtor to come up with true ARV. Zillow can vary $30,000!!
That would not be good on this one!
You also need to have a good estimate as far as rehab/remodel. Guesstimates don't work unless you know what you are doing.
Anyway, we will ASSUME your numbers are accurate. You know what assume means right?
ARV $138,000 x 65% = $89,700 minus repairs $30,000 = a $59,700 offer.
Even at 70% you are at a $66,600 offer price. This is max for a wholesale deal most of the time.
You offered 138,000 x 80% = $110,000 minus repairs $30,000 = $80,000.
Your buyer will be paying MORE that 80% of ARV minus repairs. That is pretty tight for a rehabber or land lord type cash buyer.
You never know until you try and sell it however, you might have a buyer that jumps right on it! If not you will have to give it back to the seller and on to the next with many lessons learned.
One lesson MAY be: You can not make a silk purse out of a pigs ear. Don't try, it is a waste of time.
However it turns out, you are TAKING ACTION!!! That is how you actually learn this business and meet REAL cash buyers. Way to go Shirley!! Now go make several more offers.
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
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Thank you so much for your professional and effective help.Remodeling Contract Template
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