Need Help ?

3 Replies

Hello every one, I did what read in Biggerpockets forums and now I'm getting lots of possible sellers emailing me and calling me. Now this is what one of the Sellers ask me and i would like to no how do i RESPOND to this question PLEASE someone help me so that I can reply to this Seller the right way and now loss him. Here it is,

{Seller: I received your (Assignment Contract), I have several questions. I can have each of the sellers execute a Contract but what does the ultimate buyer Get ?

For example; on on one property the seller gives you a 90 day option to buy the property  at $95,000 or you pay him $1,000 and get a 90 day option at $94,000

The ultimate buyer could buy the property today from the seller for $95,000. Why would they buy from you? All the Realtors in the area can sell the land and get paid 3% or $2,850. The seller has already turned down 2 offers at $90,000. Please give me some information as to how this works for the buyer. } What do you people think can anyone HELP.   

@Carlos Rivera Welcome to the forums!

To be a wholesaler, you have to find really good deals, which means under what a retail buyer or anyone shopping on the internet can find.

Originally posted by @Dawn Anastasi:

@Carlos Rivera Welcome to the forums!

To be a wholesaler, you have to find really good deals, which means under what a retail buyer or anyone shopping on the internet can find.

I agree with Dawn. If the price your offering the seller is that close to market value it doesn't really make sense to wholesale it; for either of you. At this point it would make more sense for the seller to use a traditional realtor. If your licensed you might as well offer to sell it so you can still make some money off this deal.

I think you are missing something in your understanding of what wholesaling is all about. First the end buyer is relying on you to negotiate a price to purchase the house at a significant discount plus also provide the end buyer with a reliable analysis of the property providing a reliable Market or ARV ( After repair value). They are also relying on you to produce accurate repair figures so they can judge if they can make a profit after purchase and repair. Maybe the seller would like it if they can pay someone, you or anyone else only $1,000.00 to find them a buyer. However the buyer will not want to buy the house at market prices. You cannot sell the house for 2 reasons.

1) you do not own the house or 

2) you are not licensed to act in the capacity of an agent for the seller.

What you are in essence doing is selling your right to purchase the property at your negotiated discount price but you are not selling the house just your right to buy it. 

For example: A house is worth $120,000.00 on the market in good condition but the house you have under contract is not in good condition so therefore not worth $120K but could be if repaired. The end buyer or your cash buyer would like to take advantage of buying the house and doing the repairs so he or she can sell it at full market price if they can do that at a lower purchase price that makes it worth their while especially if they will be paying cash.

If the house is in need of repairs the banks or the usual mortgage lenders may not qualify the house as acceptable collateral for a loan. Even those that sell turn key properties will usually need to offer their houses at some discount in order to get a cash buyer.

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