Last week I received an email blast from a wholesaler. The purchase price was stated as $60K, ARV $125. I looked at the property, estimated reno cost and verified ARV. It looked like a good opportunity. I called the wholesaler, he asked for my best offer. I told him $63K. He called me later and said another offer "significantly higher" than mine. I asked how much, but he didn't want to say.
I feel like there's something I'm missing, some unspoken rule or tactic. Anyone else have an experience like this? What do you think I can do better the next time an opportunity like this comes up?
what do you number say? Plain and simple, give him your best offer that you're comfortable with and move on. Do not get caught up in bidding war/ego match.
Give highest and best and let him know he has 24 hours, since you are looking at a few other projects.
You can not get mad because he wants to make more money. When you relist the property, you are going to do the same (highest and best).
In this case, if they ask for your best offer, you should know what you're willing to pay and offer it. You have to stick to what works for you. There are rehabbers out there that will work for less money, have their own crews, do a crappier job, use lower end finishes, etc. that will allow them to pay more for a property than you will. Set your purchase price and stick to it. If it doesn't work out, on to the next one.
Thanks everybody. We talked through that whole experience and we have adjusted our tools to give ourselves a bit more flexibility in what we can offer. There are a lot of variables in a purchase-fix-flip that go into the equations. Sharpening our saw...
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