Two real estate pros discuss wholesaling a $2.1 million property by offering around $1 million, using the 70% rule based on a projected $6 million after-repair value. They pitch converting the waterfront site into a wedding and event venue with a honeymoon suite and dock-side boat rides.
Are you in the deal room? Just looking to wholesale this property. What would we— what do you think we would offer as a wholesale price? So here's how— this is how this deal works without going into Deal Hunter right now on it. From my standpoint as an investor, it's $2.1 million, right? That's what they're asking price is. As an investor, just looking to wholesale this property, what would we— what do you think we would offer as a wholesale price? Well, we want it to be at least 70% under ARV. We're going to need to offer about $1 million and then sell it to somebody at 70% ARV so they can put money into it, fix it, and do whatever. Right. Okay. Now, if we go through the process of getting it all approved for all that stuff, it said that it'd be worth anywhere between $6 and $9 million, right?
Yeah.
Okay. So now what's the ARV of a $6 million property? That's, that's $4.2 million right there. So that place, I mean, again, it's kind of— you would, you'd be wanting to find somebody that's going to use it as like what I see here is in a wedding event venue.
Right, right.
Doing a wedding event thing, you got the water, you can put people on the boats, let them go out, and then this becomes what's called a honeymoon house where they actually— the family stays with these people, the couple, during the honeymoon. So they come here, they have the wedding, and then the couple goes off and does their little copulating thing, and then come back and they spend the rest of the week there. Happens all the time in Florida, literally.
But I mean, how pretty would that be?
Like, you could put— like, they have, they have this dock house out here. You could literally put what's called the honeymoon suite out here on the water. They go out, make grandbabies, come back.
But you could like, like right here, this whole— this would be beautiful with the arch and the chairs, and that would be really grandstand cheering section.
