How much should a wholesaler's margin be?
Hello all-
I am new to investing, so just wanted to see what you guys thought of this. I looked at this property couple of weeks ago. It's FSBO and the asking price was $18,500. I offered $15,000, the seller countered back with the asking price. I countered back with $16,000 and explained why my $16,000 was a reasonable offer.
I spoke with the seller yesterday and she said she is still considering my offer, but now she's using an agent to sell the property. And the agent told her to not consider my offer, because he will try to get her an offer for more than the asking price. This was all yesterday around 1.30.
So I meet this wholesaler, and he takes me to the exact same property and he's asking $24k for the house. I didn't tell him that I had looked at this house couple of weeks ago and was still negotiating. I wasn't very sure how to deal with this issue, so I stayed quiet. I asked him if he owned the property, and he said yes, the seller just accepted his offer, which I know is a lie. He's trying to do a double close and make quick $5-6k on the property, but that just seems too much.
So I wanted to ask you guys:
1) If you had ever dealt with the similar situation?
2) Should I talk to the wholesaler about it?
3) And is the margin of $5-6k on a $18k property reasonable? Seems too high to me.
Thanks!
