Virginia Beach, VA · Member since 2013 · 14 posts · 8 votes
There is a great property that I want to sign a contract with but they have a realtor, how do I work this out? Do I contact the realtor? What do I say to them? I know they get a percentage. How do I factor that all in? It's a quick sale for a lot less than its worth? I want this deal!
Virginia Beach, VA · Member since 2013 · 14 posts · 8 votes
12y
William T. The house is being sold for $96k. It's a town house in a cul de sac. The house to the right is $136k, the house to the left is $146k. This particular house is worth $143k and has been on the market for 3 days.
Wholesaler · Saint Louis, MO · Member since 2013 · 336 posts · 54 votes
12y
So what will your asking price be? If it is on the MLS, you will more than likely have to take off 6% off the top for the agents involved. So from there... We will apply the 50% to see if it will cash flow properly, find out what the HOA fee's and the rest of your expenses. According to BP Nation, condos rarely cash flow because of the HOA fees so be very careful and know your numbers. Just based on the information provided using the 1% rule, can you rent this property at $1380.00. ($138,000 ARV)
Wholesaler · Saint Louis, MO · Member since 2013 · 336 posts · 54 votes
12y
@Lawana Anderson I happen to just see this was under wholesaling...don't waste your time. This is not a deal unless the property is being marketed below ARV. Here is a scenario based on the info provided...
ARV $138K - 70% $89,700 - Repairs $0 (make it easier) - Profit $5,000 = $84,700 would have to the the contract price. This is making it easy for you because there are always repairs.
Wholesaler · Saint Louis, MO · Member since 2013 · 336 posts · 54 votes
12y
@Lawana Anderson What will the investor gain by buying this property from you? The buyer has to be able to make a profit just like you. To wholesale a property the 65 to 70% under ARV must be applied for the buyer (investor). The only way to make a deal on the MLS is to be a distressed property and sometimes not even then. I would take a look at the Beginner's Guide to read up on this information.