New Out Of State Investor

5 Replies

Hello all. Myself and a partner are planning to purchase a turnkey property out of state and have it run by a property manager. We've been looking in the Detroit area and have found numerous potential properties. However we are also working with a broker that is giving us listings in the price range that we are asking for, but the prices of his properties seem to be about 5-8k more than comps and estimates in the area. Also when I look these up on Zillow they are not on the market for sale but again the estimates are always lower. I'm guessing that he is wholesaling these properties to us? I'm not sure though. I don't mind paying for a service and the convenience of being able to finish this remotely. I just wanna make sure that's what it is though. Any thoughts? Thank you

@Brandon Simas

If broker is wholesaling to you, then purchase price should be less than MLS. The wholesaler gets a piece, the broker is getting a piece, and even paying both should be less than MLS. Otherwise, why go through wholesaler.

I was born and raised in Stockton. 

Terry

The broker should be pretty up front if they are sending you MLS listings or wholesale deals - ie: acting as a licensed broker or not. You should know, so ask about it.

Buying real estate is a negotiation, so offer what you think is fair, even if it is 5-10k (or more) less than asking price.  

Also, a legitimate broker should be sending you comp reports out of the MLS for properties you are interested in, and helping you to come up with an amount to offer the seller.

Thank you Terry and Caroline. Yes, I'm not quite sure why the pricing would be any different. I'm definitely going to ask a bunch of questions. Thank you.

@Brandon Simas
Whats the zip code? Good comps can be hard in some zip codes and others are appreciating very quickly during this spring buying season.

@Chris Silva The Zip is 48224. Thanks for the feedback.

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