Wholesaling: Sometimes being flexible is a good thing
Recently I closed a deal that required me to be flexible. One of the students that I'm training brought me a deal. They worked really hard on structuring this deal, but it had foundation issues and the seller was a little unrealistic. We were finally able to get them to a realistic price of $95K and the ARV of the property was close to $160K.
I brought a buyer to the table that was okay with the foundation issues, but a few more issues popped up i.e., electrical. This cash buyer that I have done business with previously asked if I would be a little flexible on the price. I told him that I would have to speak with my partner on the deal and I would get back to him. I then explained to my student that we may have to be a little more flexible with our fee and what price could we agree on. After having to explain this for a few minutes, because this was their first deal, they were very hesitant. Once we agreed on a price that we would be flexible on, I went back to the cash buyer and I let him know that we would be flexible, but not contortionist and we talked price. In the end, we gave a little and he gave a little which allowed me and my associate to split $4,000.00 on their very first Wholesale deal. Their very first wholesale deal on a property with foundation issues and a difficult seller, we were still able to make $2,000 each. Not bad for a 2 week escrow.
As a bonus, the seller of the property not only was happy with the quick close, but he is now looking to sell us another property that we are currently in negotiations on. Sometimes you shouldn’t be hung up on numbers. We are here to provide a service and sometimes you have to bend and flex a bit to make deals happen.