Moving forward! But uh.....

[Shannon Webb]

Hi guys!

I thought I would tell y'all step by step what I am going through on a fairly consistent basis, to potentially get your input. So, I've think I have found the niche I want to go into as far as wholesaling is concerned, and that's Probate estates. I'm believing there may be a higher profit margin for someone in my position and to me, it is a little more personal.

I have begun compiling my list of investors and have talked to several really nice and warm people and really look forward to working with them. I have even talked to an investor who has allowed me to tag on an extra 1000 to a property he has in my area if I find a buyer for him. (YAY!) Things are starting to come together for me and I am excited about the steps I'm taking.

With that being said, I am contemplating what to say to the probate administrators and attorneys. Mind you, I understand they have been through a lot and don't want to come off as opportunistic. I really want them to understand that while I want to offer cash to them to take the property off their hands, I also need to win in this situation. 

So in these instances am I wrong for low balling offers? For instance a property I am looking at is 3bd 3ba, 2960 sqft, on a 3.92 acre lot in great condition. The property in my opinion is worth 200,000 plus but for what has been selling as of late we are looking more the lines of 170,000. and at 60% that brings the price to 102,000. WOULD I BE WRONG to offer 85,000??? Is this offer borderline offensive????

Honesty is the best policy!

[Mark Elliott]

so, basically you are looking to buy a house that is worth a potential $170,000 for $85,000. i think the seller would see that as insulting. i understand that if you quickly wholesale it, you stand to make a good amount of money with minimal effort, which is the name of the game, but you also have to look at it from the sellers stand point. they want to walk away from the table with money in their hand too. loosing 50% on the deal is not what they are looking to do. 

i would offer the $102,000. its a big drop in the amount the sellers would like to get, but lets face it, a " motivated" seller has to understand there is a price for a quick sale. offer the house to your buyer at a decent price to them as well as making a little cash yourself. if you offer it to your buyer for $122,000, you walk away with $20,000 and they still get a house at a $50,000 deduction. everyone walks away happy

don't be afraid to offer lower than asking price, but don't come across as greedy either