Sure Need My BP members/friends (frustrated)

[Louise Whidby]

I am trying to wholesale my 1st property. I contracted for 35k + my fee. Investor went to look at it today. When I called her to get feedback she wouldn't answer phone, but later sent me an email offering me $15k. She gives a list of repairs and states the lady has been living in the house for over 40years and doubt she has done anything to it. I looked at the property prior to sending investors and the Son of the deceased owner gave me an appraisal report. I don't know. I am a little frustrated and I have other Investor who want to see the property. I didn't know about this cat and mouse negotiating!! I promised this man I would give him 35k for his property. Help me out BP!!!!!!

[Jon Holdman]

IMHO, if you're told the owner you're going to pay him $35K you should buy it for $35K. Realistically, though, if you can't, or if that's a bad deal, you're not going to. Wholesalers should be upfront in my opinion that they actually have no intention of buying the property and are going to try to find a buyer. Yes, the contract you use is a purchase and sale agreement rather than the listing agreement an agent would use. But you are doing the same job.

Its essentially that you know the values for the area. And have a pretty good idea of the repair cost. Otherwise, its hard to know if you have a good deal or not. In this case, an investor is offering you $15K. You asking (guessing about your fee) $37K or some such. So that investor is telling you its worth less than half of what you thought. Now, that may be the investor trying to get an especially good deal. Or, it may reflect the true value vs. what you through. Likely some of both. Now you need to reassess your figures and see what you can do.

When an agent lists a property, they put down some price. Potential buyers make offers. Usually, the two agents do some of the negotiation. You're filling the role of both, so, yes, you absolutely have to negotiate with both the buyer and seller.