hello my name is mike iam a novice investor with a potential wholesale deal on the table theres a property in my area a suburb outside Chicago nice neighborhood its FSBO. The owner is the daughter of the couple who past and they want 195,000 it has 2br,2bath full basement,fenced yard needs no work but kitchen and bath could definitely use upgrades but could definitely be a turn key or rental seems like a no a no brainer however comparables in the area are 149 to 173 and those have full remodels done and most have 3br there about 30% above price on zillow(i know thats just an estimate) the one thing that really stands out is that the house is directly behind the train tracks so location is whats causing the home to be not sold with that high price any advice to help me close this would be fantastic thank you
Where is the deal here? The daughter obviously isn't motivated to sell. She wants 20k more than the highest comp?
Quit wasting you time pushing bad deals. PERIOD!
how was i pushing a bad deal? there asking 195 however you and i know that she wont ever get that even if someone had a conventional loan thats why i asked for some advise. Iam goin to offer her a cash price in the next few days shes open to a cash price and motivated but i need some professional negotiating points
You could show her the comps, and ask her if that is her best price. If it is, you probably don't have a deal. If she realizes that she is way over market, then you might have something.
Thanks @dalewalvoord do you think that a 105 cash price offer to the seller is fair?
I notice a few things about this deal. Comps of rehabbed properties with more bedrooms are selling 173k on the high end and are 30% above zestimate? What this tells me is that the train tracks aren't the main reason it hasnt sold. 190k is unrealistic and thus why it's probably sat on the market.
You need to do a few things. find out their true motivation for listing. if it's "just to see what I can get?" or "I need to downsize" those typically are wastes of time. No amount of nuero linguistic programming can make it a deal if they have no motivation.
To find out what your max offer is, run comps on the subject and determine your AFTER Repair value. subtract all the closing costs , holding costs, and rehab costs then add your necessary profit. Being a strong rental property is only deemed a NO BRAINER if you are over 12%cap in an nice area.
Hope this helps you make your offer.
yes it does thank you for the help Jai
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