Hey everyone ! I'm new to wholesaling I sent out my first direct mail letters to houses that I saw while D4D! I have a spreadsheet set up with address, owner info, notes etc.
This house in particular that called back had a FSBO in front of it...
I've seen on some of the forums that wholesalers will attempt to do these , but mostly it's the boarded up, vacant, absentee owners etc.
My question is can I try to get this under contract if it's a good deal and find a buyer ?
Do wholesalers typically shoot for the FSBO houses or pass? He sounded motivated b/c he said the house is too big for him and his wife and they already have another home. He was just making sure I wasn't a realtor b/c he wanted to avoid commissions etc. (his words). I scheduled an appointment for Tuesday at 1pm. I'm nervous as heck lol.
Any advise or tips would be helpful guys!
Thanks , Porsha
Yes get a contract signed that is set to do what you want, namely wholesale. Put in the contract 'This contract is contingent on my partners approval.'
Thank you I will def do that when I go to the appointment on Tuesday!
"Contingent upon partner approval" is a WEAK contingency clause. It's been debunked on here several times as pretty dang unethical. You can't technically enter into a contract if you don't have the authority to do so without a partner.
With a FSBO you're going to have to get it at a pretty substantial discount below what he has "listed" for. FSBO can be a GREAT source of leads/deals. But you have to be able to haggle efficiently. I prefer the FSBO's that aren't done "right". Ex: Not on Zillow/Trulia/Craigslist.
@Ryan Dossey then what is the best course to proceed in then? Check the appraisal site? Check with a realtor for recent solds?
I'd HIGHLY advocate reaching out to a member on here who is a Realtor in your area to "get some comps" pulled. My main concern for @LaPorsha Edmun is that I have several friends in Dallas. It is an extremely hot market right now. If a home is a properly listed FSBO and is still sitting there's probably a reason why... Price. I also know in her market people wholesale deals off of the MLS openly. So I don't think she'll have an issue with it being a FSBO. It's just (most likely) going to have to be at a substantially reduced priced.
@Ryan Dossey Thanks for the advice ! The seller hasn't listed it yet. I found it by just driving for Dollars and took a chance by sending a letter to them. His motivation for selling is that they need to downsize b/c it's just him and his wife and they already have another house. We ran "comps" last night for the area. He did tell me that he owes $80,000 on the mortgage. It's a child support lien on the house $5,000... but he looking for $170,000. I didn't make an offer yet but I did tell him as an investor I don't buy properties at retail price etc. and he said he was fine with that he just doesn't want to deal with a realtor. In the area the high comps and low comps numbers I think we can work with, but we will see what he says on a Tuesday. It's my first call back/ first appointment so I'm nervous, but at the same time I'm not going to go over the 70% ...I been reading a lot about making sure the math is right etc.
@LaPorsha Edmun Perfect. I have several cash buyers in Dallas. If you get it in the proper BallPark I'll make some intros. That's what I mean about a poorly marketed FSBO. Well done.
Good luck! LaPorsha.
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