What Do You Think - Posted by Rtyson

Posted by Ronald * Starr(in No CA) on September 22, 2003 at 11:38:03:

R. Tyson-----------

Understand that a wholesaler does not own the property. The wholesaler has a purchase agreement with the owner for a certain price. You are not going to get the wholesaler to sell for less than the agreed upon price with the owner. So making an extremely low offer is probably a waste of time.

Just point out that you might not be able to make a profit at the asking price. Ask the wholesaler how low s/he can go. If the lowest price works for you, go ahead. Otherwise say “Thanks, I don’t think I can work this. Please bring me any other deals you might get.”

It is well known that beginners who try to wholesale properties agree to pay too much and their “deals” do not make sense to serious rehab people. This may well be a case in point.

You had better sharpen up your estimate of rehab costs also, so you don’t have a wide range. Then you can know whether to spend any more work on the offering or not.

Good InvestingRon Starr*

What Do You Think - Posted by Rtyson

Posted by Rtyson on September 21, 2003 at 20:16:09:


I’m in the process of presenting a wholsaler an offer
for a piece of property.

Property ARV: 70K
Wholesale Price: 40K
Estimate rehab cost: 30K WorstCase

I will make an offer of 12-20K to the wholesaler. This house has been on the market for at least a year. I believe that I can pay no more than 15-20K for this property
since I’m taking all the risk in the rehab and need a
decent money spread between (rehab + purchase) and ARV to
increase my chances of a successful deal.

I want to acquire the property for 15K, Rehab 30K and possibly sell for 75K with owner financing. Currently I have a perspective buyer I’m trying to get qualified. If I
can’t get her successfully qualified she may perhaps be a
potential renter for me as well.

Could anyone lend their experience to my situation, additional advice would be greatly appreciated.

R. Tyson