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!
Investor · VT · Member since 2015 · 12 posts · 2 votes
11y
Hi Ryan,
Congrats on your success. I've really enjoyed reading this thread and everyone's input & especially following your stories. A quick few questions:
Do you offer earnest money & how did you come up with your contract that you use to give to the seller?
What did you do to get comfortable estimating renovation costs and ARV?
Do you have other outside team members such as a RE attorney, RE agent, title company, lenders, etc.
How are things going now that you're working full time? What's currently in the pipeline & any other tips off the top of your head that's come up between now & April.
Look forward to hearing about your continued successes!
We do not offer earnest money. If the seller asks, we explain we are paying cash and will be wiring the entire amount to the title company. Usually seller is happy with that. We used the 'contract for the purchase and sale of real estate' found in the BP FilePlace under the Resources tab at the top of the page. Now we are going to start using the forms provided by my realtor association because I am now a licensed realtor.
Estimating rehab cost comes from practice. At first we had a contractor provide us with a simple spread sheet that was used to check off items that each house needed and it provided a rough estimate of rehab cost. The more homes you walk through, the more you will get comfortable with estimating rehabs. When we walk through properties we take pictures of everything we can and I also write everything I see down when I get back to my car so I do not forget when I get home to estimate the rehab cost. Once we put a property under contract I will have a scope of work and a budget in mind and I will get bids from a couple contractors we work with.
The best way to know the ARV of a property is by using the local MLS to check recent sales and properties currently for sale that are nearby and match your property in question. If you do not have access to the MLS I would recommend networking with realtors until you find one that is willing to work with you on running comps. This really is the most accurate way. Unfortunately the ARV is what the market will bare.
We have many people we have met through networking that we work with and keep in touch with. We have a CPA that helps with taxes, other realtors that help with moving properties or finding properties, an attorney when needed for legal questions, a bank for portfolio lending, private money lenders to fund deals, and a title company we have closed all our deals at. As time goes on, you have more and more people in your corner to help you. Investors love to help each other.
We currently are closing a wholesale transaction next week, we have a flip under contruction that will be finished and ready to list in 2 weeks and we have many properties we are negotiating on. We have a triplex we have under contract we are wholesaling. We recently tweaked our marketing to target more expensive properties that offer larger profit margins to flip. To supplement my income now that I am managing REI full time I have been working as a realtor. I am assisting a buyer with closing on a property. We will close that deal at the end of August.