I'm fairly new to the investment game. As a wholesaler, I've learned to reach out to other wholesalers to attempt to close deals. I've been fortunate to find buyers, who actually depend on me to find them properties, like they would an agent. In finding properties, if a fellow investor has a property that I think will suit the needs of my buyer, I ask the owner/contract holder what amount they need to get in the deal? Ex. They want $30k on the deal, & I quote $37k to the buyer. What I'm finding is, once these owners find out my markup....all of a sudden, they start talking PERCENTAGES!!! Lol
Am I being naive to think, once we determine what you need & we agree on that number, that whatever I get over that number (minus closing costs) belongs to ME?? If I put $7k on top of your asking price.....it should be obvious I'm NOT looking for a $1500 fee, isn't it??!!
Confused & Amused in Virginia
hey guys...don't all jump in at once!!
Hi Scott, wholesaling from a wholesaler is definitely interesting, but what your mark up should have nothing to do with the owner/contract holder. I know its tough to kinda say it like that, but it shouldn't even be there question. The deal should simply be 'how much do you want'... and they get what they wanted, not shifting the posts later to suit them and take an extra piece of someone else's pie. That being said, wholesaling from a wholesaler would scare me as a buyer, but if you have them ready to buy, good on you. Don't be bullied out of what you made for you.
Do a non exclusive option for the amount of money they owe. Anything over that is yours, and your locked in. If you have the same buyers all the time they may eventually get wise to who your buyers are and cut out the middle man. Sometimes your buyers only trust you and your good.
I totally agree! Another thing I do is send emails & texts to establish a good ole paper trail, in case anyone gets amnesia. It's just humorous how some try to RATION to you, the money you're bringing to the table! Much success to you!
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