Wholesaler · Syracuse, NY · Member since 2014 · 120 posts · 8 votes
A wholesaler contacted me today regarding a property that he presumably has under contract. I let him know that I could pass along the deal to my buyers for a fee, and her agreed to 5% of the sale price ($1250). I started preparing the "flyer" to send to my list, and upon confirming the number found myself on the property listed on Trulia. It is listed FSBO, for $18k, and he wants $25K. Now my question is this, if I pass this along to by buyers and an another investor sees this (which they undoubtedly will) will it effect the deal?
Should I continue to help him, or would it make me lose face in the eyes if my buyers?
If its still a deal at 25k no investor should care what he got it for, all they care about is if the numbers work for THEM at that price. Every investor buyer who buys from a wholesaler knows there is a mark up, otherwise noone would wholesale, there has to be meat left on the table for the end buyer, if there is, I dont see a problem at all. You might lose face trying to wholesale it at 25k if its only worth that or less though. Check out the numbers yourself..
@Stephen Gailey Thanks. I did a prelim check on the numbers and they are pretty consistent. The value of the home after repairs is a little more than twice the asking price.
Good, like I said, if theres meat left for the end buyer I wouldnt worry about what its bought for. Im currently flipping a home that I negotiated down to $4500 and Im selling for $9000, end buyer is ecstatic because theres still alot of meat after repairs for him, he doesnt care one bit that Ill end up with more than the seller after closing