What is a win win strategy?

Question

What is a win win investing strategy for the investor and ANY motivated seller that will not put the investor in danger in the deal?  I like win win deals way better than low balling sellers in a wholesale deal.  If that method does not include buying the home on terms, what else is there that will work out better between the seller and investor without having to make low ball offers?

Jay Hinrichs · Answer

I reality in markets today you should also be able to close.. then resell.. that is bringing value..

Michael Guzik · Answer

I agree my friend there is a bad reputation and stigma when most people think of wholesalers. However there is a difference between a low ball offer and a calculated and thought through offer. You don't just throw out an offer you give an offer and an explanation for it. For example on a house worth 100k with an ARV of 140k with 30k in repairs,  you would probably offer around 70k. You would say "Mr/Mrs seller in order to get this place fixed up and in tip top shape I would need to invest at least 30k into it to fix the foundation, roof, repaint and put in new carpet, not to mention closing costs and fees which you won't have to worry about. I also need to make a reasonable profit for my time and effort in this investment. All things considered my offer would be 70k cash." This is just a hypothetical situation of course. I don't know where you got this mentality that wholesaling is a win/loss situation but you need to fix that if you want to have success in real estate. You are providing value and a solution to the seller. You also should know when you are or aren't a good fit for them. If they want tip top dollar then tell them they should consider looking at selling with an agent, they will just have to pay all the fees and commissions and wait for it to sell. You should show and tell them that your value and service is fast and stress free. Of course like in many areas and jobs there are unethical and immoral people who do take advantage of situations and do low ball sellers. Don't be like them. You also need to get change your view on your offer being a low ball offer. Your offer is your offer because that's what the numbers come out to. Take the emotion out of that side of the transaction. You should work on learning to present your offer and less on the actual offer. That would be the easiest part because it's just plugging numbers in a formula. I wish you the best of luck my friend and don't let things like this discourage you. If you are working hard and doing the right thing like I think you are, you should have nothing to worry about!