wholesale lead

8 Replies

Hey Biggerpockets! I recently got a lead from my direct mail campaign, and when we were speaking over the phone he said "you can walk away with it for $92,500". After that i did some research on the property, and i found out the property is valued at $175,000. My question is, Does it really matter if the motivation is there considering he's already giving it at a deep discount?

send him a contract for $90,000

@Joel Owens , At the moment I have not seen the property i only viewed it on google maps and from that perspective it looks like its in good condition from the outside. My guess was either it needed a ton of repairs, or he had  motivation behind the pricing.

Great you got a lead. More important: why is he selling? Where is the $175k value coming from? Turnkey comps? All closed past 6-months? One mile distance? If the answers are all yes. Can you ask if $92.5k is the best seller can do? Transition into needed repairs and note it down. The goal is to be able to have the seller himself determine that your number will be the $92.5k (or whatever best number he can do from your question above) minus the agreed repairs minus other costs (if any). If the net number looks attractive to you jump on your car and inspect the property. Take a contract with you (just in case). What is your plan for closing? Have a title co identified? He will demand clear answers. Dont be shady. Be ready!

@Brian G. thanks for all that info! i got the $175k from comps i pulled from zillow.com, findcompsnow.com, and other websites they were all within one mile distance. A cash buyer has also purchased a similar property within one mile distance from this property for $150k (it was a small difference between the sq ft). The seller was not really spelling the beans on why he was selling over the phone. I've set an appointment to meet with the seller this weekend, I will see what repairs need to be done etc. Again thank you for all the valuable info! 

Originally posted by @Umair Baig :

@Joel Owens , At the moment I have not seen the property i only viewed it on google maps and from that perspective it looks like its in good condition from the outside. 

You're new to this, right?

Cmon, let's get serious for a moment. You are posting this on a forum for comments, and you haven't even taken a drive by of the property, let alone viewed it? So all your initial enthusiasm is based on a Google photograph taken 4 years ago?

@Umair Baig Are you sure he is the actual owner? Any Liens on the property? Make sure your "due diligence" covers these sort of issues also, as well as ensuring any earnest money is not able to be scammed away from you. Cheers...

Originally posted by @Umair Baig :

Hey Biggerpockets! I recently got a lead from my direct mail campaign, and when we were speaking over the phone he said "you can walk away with it for $92,500". After that i did some research on the property, and i found out the property is valued at $175,000. My question is, Does it really matter if the motivation is there considering he's already giving it at a deep discount?

 I know i'm rather new, but red flags would go up if an owner immediately threw out a number like that so readily with no rhyme or reason (unless perhaps he was in a dire situation). Nevertheless, run the comps, visit the house, neighborhood , research the county listing, google the owners name, speak with the owner and perhaps the neighbors. Arm yourself with as much info as possible. Find out why he wants to sell so you'll have a general idea of what's going on. You may just learn it's a smoking hot deal. You may learn you've walked into your worst nightmare. Hope that helps.

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