Deal or no deal?

6 Replies

I spoke to someone yesterday who is interested in selling her house. Initially, I contacted her about selling the house she lived in but she stated that she had another property in her name that she would like to sell to get it off her shoulders. It is a 2 storied, 4 bed, 2.5 bath in the suburbs of Atlanta, Georgia. The ARV is $115k based off the comps in the area. Before I throw out my wholesale 70% rule number to her, I would like to know is there any other methods that would be a backup to get the deal closed where I make a profit. She's owned the house for 5 years, the house is fairly new with little needed repairs (maybe new carpet and paint). Currently, she is renting the property out to tenants and she said their lease will soon end in a couple of months.

The reason I am asking, the seller has a $200k ask price. If I offer 70% minus repairs, I am sure she will not accept it. Do you think their is another method?

The ARV is 115k but the owner is asking 200k? Seems like her asking price is too high even without the 70% rule...?

@Keela C.  Yes, there is surely something wrong with your stated numbers? Before you respond, can you also make sure you mention the realistic Rent return? Thanks...

PS. No need to mention to the Seller how you formulate your Offer. If you ARE intending to immediately wholesale or assign it though, it would be proper to let her know, so that your Contract can reflect those possibilities. Cheers...

@Keela C.  since you're so far apart on your numbers, you'll need to convince her that her price is too high, and back it up with comps in the area. If she doesn't come down from her price, move on. There are a lot of deals out there. Good luck!

Its one of three things:

1. She did some major upgrading to the property

2. Your ARV is way off

3. She's adding personal value to the property.

I would see if I could go check out the property and the neighborhood.

She needs to come down on the price and allow you to do seller financing. She probably has a mortgage, try to do a wrap.

Whenever you ask a question here it is ALWAYS good to supply the following answers from sellers:

``````````````````````````````````````````````````

How much do you want for your house? Do you have a CMA or recent appraisal?

Do you have a mortgage balance? If so how much? Is it an ARM or fixed?

Is it current or behind?

What date do you want to leave?

What condition is the inside from excellent to fair?  The outside?

Is there an agent involved now?  Was it listed recently?

`````````````````````````````````````````````

This business is "cash or terms".  You can't talk about terms without the existing financing known and understood.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.