Investor/Realtor · Wentzville, MO · Member since 2014 · 846 posts · 431 votes
We have a property under contract that we are going to wholesale. We have 6-7 people interested in the deal already in two days. We are going to meet 3 possibly 4 people at the property tonight to show it. How many people is to many for a showing?? We normally have one buyer at a time come through a property in the past.
Is having 3-7 people come see it at the same time a bad idea??
@Chad Clanton@Chaz Reid@Mark Brogan Just got home. 3 people showed up and they all plan to submit a offer. All three looked very interested. The 3rd buyer came with an agent and tried to point out anything he could to build value in getting a lower cost then he hit us with.. "Whats the lowest you will take" line. We told him to submit a offer like the others via email and we will choose the highest bid!
I've heard that line in everything but real estate (still looking for my first deal) and my response is "What's the most you're willing to pay?" Most people don't have an answer, and those that ask the question have no idea how to negotiate. You answered PERFECTLY!
Great work, sounds like you found the right property! I personally have never shown to that many, but there are a number of "one time showings" done with multiple people here in SA. I would think that as long as you maintain the lead on the showing, it would do nothing but potentially build a sense of "urgency" for the buyers. Good luck, and let us know how it works out!
Ha, if they get outbid up there, feel free to send em down this way for a 5-plex looking for a home ;-) Awesome work bud, definitely let us know how it goes!
@Chad Clanton@Chaz Reid@Mark Brogan Just got home. 3 people showed up and they all plan to submit a offer. All three looked very interested. The 3rd buyer came with an agent and tried to point out anything he could to build value in getting a lower cost then he hit us with.. "Whats the lowest you will take" line. We told him to submit a offer like the others via email and we will choose the highest bid!
Hey newbie here question when you got the property under contract did you leave the price blank? The reason I ask is because I been reading and I see that once you find a seller you two agree on a price and then put it under contract.... @Ryan Billingsley
1st you negotiate a price with the seller and get property under contract. Then you find a buyer. In the eyes of the seller, you are agreeing to buy their property, so a price will need to be agreed upon first before you market it to the end buyer.
@Ryan Billingsley I think what @Roberto Lebron was asking is, do you have to come up with a NEW Contract for the actual Buyer to sign (or, does the Buyer know the amount on your Contract that you agreed to give the Seller)? Because if you are just Assigning your Contract, then all your Buyers already know what you got it for? It seems that might put a bit of a dampener on your hoped-for Bidding war, rather than if they didn't know what you 'paid' in the first place? Cheers...
@Brent Coombs@Roberto Lebron When negotiating a deal, you will always agree to a price with the seller first regardless of the next step. Now depending on how you feel about your fee, you can either assign the contract and let the end buyer see your profit on the deal, or have the end buyer submit a completely separate contract and not see the profit. If there are separate contracts you will do a double close at the title company.
@Brent Coombs We have never assigned a contract. We have made 10k+ on every wholesale deal we have closed so far and feel uncomfortable showing the end buyer our profits so we choose to do 2 contracts and a double close. Our title company prefers that because they get paid twice for 2 closings! haha. But it ends up costing us an extra couple hundred for closing cost which is not bad considering the profits we are making.
@Brent Coombs We have never assigned a contract. We have made 10k+ on every wholesale deal we have closed so far and feel uncomfortable showing the end buyer our profits so we choose to do 2 contracts and a double close. Our title company prefers that because they get paid twice for 2 closings! haha. But it ends up costing us an extra couple hundred for closing cost which is not bad considering the profits we are making.
Hey there! Ryan, does this mean you are getting prequalified to fund the first contract or are you off to the races to get the second contract signed same day? I believe there is a lender who will do the double close as long ad it happens the same day, but that's tough.
@Annette D. When we make offers they are cash only. There is no qualification for funds. Our title company funds the A-B transaction which is the seller-wholesaler transaction with the buyers funds (C). All parties sign the paperwork at the title company and then the checks are cut. When dealing with investors, most deals are cash deals.
So far out of the three people who came through we have 1 offer submitted and 1 email from another potential buyer stating they are interested and asked for a contract they can use to submit an offer.
The offer submitted is lower than we hoped but the first offer is usually a low ball offer.
I am meeting another interested buyer at the house tonight!
@Chad Clanton@Chaz Reid@Mark Brogan Just got home. 3 people showed up and they all plan to submit a offer. All three looked very interested. The 3rd buyer came with an agent and tried to point out anything he could to build value in getting a lower cost then he hit us with.. "Whats the lowest you will take" line. We told him to submit a offer like the others via email and we will choose the highest bid!
I've heard that line in everything but real estate (still looking for my first deal) and my response is "What's the most you're willing to pay?" Most people don't have an answer, and those that ask the question have no idea how to negotiate. You answered PERFECTLY!