[Curtis Frieden]

Curtis Frieden

Hey,

Got a call from another investor about a property that they are trying to wholesale. They are selling for 55K with an ARV of 92-97K. Seller says he’s flexible if we can close fast. The property is 1300 square feet and the average price in that area is 75 per square foot ($97,500).

The kicker on this property is that it is not by me so I can’t see the property myself. It’s located in Bakersfield (I’m in Orange County, about 2.5-3 hours away) but I DO have a buyer that buys a lot of homes in Bakersfield. According to the wholesaler, the property doesn’t have any real repairs that need to be done, it just looks and feels old and needs to be updated. You can see the pictures and a video below:

https://www.dropbox.com/sh/hckboj4sl4vacbp/sjvhrP2ZVA

So, is this a deal that would make sense to work? If so, what kind of contract should I put in place with the wholesaler before I approach my buyer on the deal?

Any help is appreciated.

Thanks!

[Jackie Lange]

Jackie Lange

Obviously, the wholesaler got the house for less than $55k.

You need to write an Option agreement with the wholesaler that if you bring the buyer to the table, you will be paid $___ (or write it for 50% of the proceeds) Both sign and get it notarized. Find out which escrow company the wholesaler is using to make sure they get a copy of the Option. Call the escrow company to verify that the wholesaler has opened escrow there

[Jackie Lange]

Jackie Lange

Wholesaling someone else’s deal is not the ideal situation.