Considering Deal with iffy comps need advice PLEASE

in the absence of legitimate comps, if you have a buyers list, get the property under contract for the best price you can and let your buyers worry about the ARV. If you don't have any buyers who can make make money on the property, don't close escrow on it.

get it under contract, like trsd said it really all depends on your buyers list. I am in the middle of getting speculative buyers finally so I will be able to send them deals like yours. if you dont have buyers like that and you know your buyers wont get it then as they say sometimes the best deals you do are the ones you dont do.
if it is not a hot area to buy in then i perosnally would pass, thats just me thoough.

compare apples to apples

add extra for lot size/acreage, garage, pool, etc.

Take in consideration of condition and repairs needed.

follow above advice

Thanks for the suggestions. It's in a hot area, I'm going to go ahead and put it under contract, I have buyers who will figure it out. I'm only doing $1 for Earnest money so no big deal there. Thanks so much for your suggestions!

I see it all the time, investors get really excited about making a deal. But in the end they don't have a buyer. If you have a buyer that you think will buy this property, contact that buyer now. Tell them about the property, but not the address. Round numbers on square footage beds baths etc. to anonymize it more. It is really important that you let them know upfront and be honest that there are not many comps, but the one and only comp that there is is much smaller and more expensive. Do you know if the comp is a rehab the property, or if it is a retail turn key home? That is something you will want to find out. A lot of times you can look at the pictures to find an idea whether it's an ARv comp or another rehab.

Give them as much information about the property without giving them the address and see if it is something they would consider buying for the price plus your fee. But you must find out about the comp using the above information I gave you.

A lot of new investors will get involved and get deals and then not be able to wholesale and say this doesn't work. The sad fact is that many people will fail only twice and give up saying it doesn't work so don't fall into that trap. Make sure you have the buyer first!

Sorry couldn't be of any more help I wish you all the best in your endeavors and that you are able to make this into a deal or create a deal. Have you considered doing owner financing? Would they be happy with a monthly income? There are so many avenues you can take other than just a simple cash offer. Make sure to have alternative offers available in case you have no buyers.

With no legitimate comps, what do you base it being a hot area on?

Supply - Listed houses
Demand - Pending deals
Price - Sold properties

I agree Tammy I would have buyers for it first just take the time to have them right it makes your life so much easier and especially speculative buyers. TRSD you are absolutely right, why arent there any comps?

are you comping it out right? is your criteria too strict, we do commp out with sold comps within a half mile, but if not enough comps go out .75 miles and still not at least 3 sold comps go out a mile.

Also if not similar # of bed-bth then go ahead and use comps with an extra bed-bth or less but adjust y our ARV like say anywhere from 10k to 20k per bedroom for example. also use comps that are newer then but again adjust your arv, if your hm was built in 1925 and the comps are fromm 1960s and above then I would prob subtract about 50k-100k from the ARV depending on the area like san diego 100k kc 50k. thats what i do and it seems to be working so hope that helps.

Tammy love to see you here! missed you a big bunch!

Taking all the "as is" Solds and the "rehabbed" Solds and determining the cost/Sq ft might give you a ball park number. At the very least, put it under contract. If your buyers don't want it, put it on Craigs list and maybe find some new buyers. Call all the "we buy houses" ads in your area. Maybe you can co-wholesale it or expand your network with new buyers or other wholesalers you might work with in the future.

I recently had a seller call me and his property was something similar. In the middle of the city, this was a 1 acre horse property and nothing like it anywhere else. There were 8 houses in that little area and only one of them sold, but my seller had a barn, a guest house and a huge RV shed on his property which made it more valuable.

What I did was really widen my area and use larger properties which had similar acreage, similar square footage and then also a guest house. These were somewhat varied in price per square foot, but I could come up with something that made sense. I told my seller I thought it was worth something in the neighborhood of $300K and he was at $325K, so I felt I did good with the value.

Some of these properties are very difficult to comp. For this guy, I made it really clear that I would probably need some time before I closed escrow because I had to look for "a joint venture partner" because of the size of the property. I thought it might be hard to wholesale because it's not your standard fix n flip or rental. I gave him a week to sign the contract and think about it, and in the end he said he was going to get an appraiser. Probably the best for him. All he had to do finish was the interior paint. Somebody who wants a horse property will fall in LOVE with it, but for me it would be hard to wholesale.

It's all good.

thx

Thanks for all the info, it's very helpful. It's in a hot area of the city. The neighborhood across the street from it is hopping with investors but this neighborhood is just very small. I tried to get it under contract but I think the home owner is talking with a Realtor (or someone) because he's selling as fsbo but now he's asking for proof of funds. I gave him one from one of the transactional companies I use online that works fine for my REO's I make offers on but he's now saying he wants it coming from my bank account and he wants to talk to someone to verify. Beginning to think this house isn't worth my time.

PS - just cashed my first wholesale check this morning so not only do I know it works, I'm cranking up to full-time

Doesn't sound like your seller is very motivated.