I am meeting with an owner of a property that inherited a property from his mother.
He is not interested in the property and would like a quick sale.
Sq Ft: 940 sq ft
Lot: 5000 sq ft
Market Value: 950k – 1.2 M
My current thinking is to get the property under contract and wholesale the property to a rehabber and collect an assignment fee on close. I understand that there are many schools of thought on what to offer. I understand that often that you take 70% of the ARV. So without looking at the property, if I take 70% of 950k which is the low end of the range a reasonable offer could potentially be 665k – 700k.
In any case, I would be interested to understand from the community how best to structure the potential deal.
I am familiar with the market. It is a property that is need of TLC. Are you suggesting that after I get the property under contract that I turn around and sell it as a highest bidder sale? Or, work with the seller to agree to a highest bidder sale. If it is indeed the latter, how would I get compensated?
I agree with Mike. The information you will gain is priceless. No need to close on the house and then try to resell. You would have a negotiated price with the seller. Anything over that could be your profits. Allot of investors agree to split profit with owner over a negotiated strike price.