1st wholesale deal....

[Ryan Johnson]

I've been working really hard to get my first wholesale deal done. I got to use spare time, because of a 65+ hour work week at a job and family. But hey! A guy can only do what he can do right!? My phone rang yesterday with a guy that wants to sell a 5,000sqrft. 4 plex. He asked if I was interested. Yep, so send me the deal. It's an old church built in 1900. Converted to the current state. He wants 69,000. I offer him 30,000k. Here's why..... A city assessment of 15,000k. Over 9k in back taxes. The taxable market value is 60k. He says no to my offer. I don't feel comfortable offering any more. So my question BP, did what I do make sense? Do I have cold feet? Or am I trying to screw the guy? I really don't think I am though. Thanks! 1 more thing! If all I take away from this, at least my phone rang with a lead!

[Ned Carey]

The back taxes are irrelevant. Most contract say something like "Seller to provide free and clear title" That means the seller is responsible for the back taxes and will come out of his or her proceeds. 

The tax assessment or tax value is also irrelevant. It could be way low or way high. 

What maters is what are the rents and what is the condition, and what are comparable properties selling for.

You are not trying to screw the guy. You just don't know how to evaluate a deal. You need to learn how to evaluate deals. There is a ton of information here on BP to help you do that. The free Beginners Guide under the learn tab above probably has some tips. Also do some searches here.