Wilmington, NC · Member since 2011 · 160 posts · 1 vote
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!!!!!!
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y
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.
Landlord and Rehabber · Newton, MA · Member since 2010 · 2k+ posts · 877 votes
13y
Going the same way as the last several comments that it sure sounds like your rehab budget is WAY to low. I would have guessed it was off by about a factor of 10, which would get the price right about what the investor offered you.
Good news is that given the numbers working that way it looks like you did a good job running comps! That is the other half of the job so at least you only have to work on the repair side.
Developer · Philadelphia, PA · Member since 2013 · 1k+ posts · 902 votes
13y
Louise Whidby I'm impressed with your perseverance and the guts it takes to come on here and lay it all out like this to better yourself, very impressive! Are you able to go back to the seller and renegotiate the purchase price? Let us know how you make out, I'm rooting for you!!!
Wilmington, NC · Member since 2011 · 160 posts · 1 vote
13y
Thanks @ Troy Sheets- The seller actually backed out because he didn't want to go through the process of transferring "probate" deed. The entire process was a learning lesson for me and I will keep moving forward. Today I am a lil frustrated, but it won't stop me from pushing forward and reaching my goal.
Contractor · Potomac, MD · Member since 2013 · 64 posts · 3 votes
13y
Louise Whidby
Louise, no one was born knowing anything but it seems you have the elements central to success: patience, intelligence, determination, curiosity, and ambition.
In a couple weeks, you'll be able to look at a home and know it needs windows, doors, and two bathrooms and exactly how much time & money is needed to get it all done... keep up the good work