I Missed Out On Killer Wholesale Deal

8 Replies

Hey BP, I think I might of missed out on a nice wholesale deal because I was to slow on estimating the repair costs. I went to see the property, took notes and pictures of the property and my intentions were to go home and estimate the repair costs. By the time I got home the seller texted me and said "we accepted another buyers offer".  I wasn't knowledgable and confident enough to give a offer on the spot and I lost out. The other buyer offered her $451,000, this is what she says. I think I missed out on at least a $15k assignment fee. I think it would need new kitchens, new bathrooms, central air installed, rewire electric, new plumbing for the bathrooms. Its Oil baseboard heat probably needs to switched over to gas. New windows there are 27 of them, new garage door and new exterior on the garage and of course painting the inside and new appliances. 

What do you think the repair cost would be? Here's the numbers:

4 Beds 2/1 Baths

2900 Sq/ft In Brywn PA

ARV: $887,000

Purchase Price: $451,000

Est Repair Value: ???

Bedroom 1

Master Bedroom

Master Bathroom 

Bedroom 3

Full Bath 

Living Room

Dining Room 

Kitchen 

Living Area

Bedroom 4

Half Bath

Basement

Basement

I would do a rough estimate and get the deal under contract contingent upon inspection. At that time, then you bring in your contractor/inspector/buyer and let them give a better estimate. If you need to revise your offer just be up front and honest and let the sellers know as soon as possible so they can make adjustments or decisions for themselves. Don't assume they will be mad.

If your revised price does not work out for them then both parties know it before getting further invested in money and time.

Good luck

Originally posted by @Walter Roby jr :

I would do a rough estimate and get the deal under contract contingent upon inspection. At that time, then you bring in your contractor/inspector/buyer and let them give a better estimate. If you need to revise your offer just be up front and honest and let the sellers know as soon as possible so they can make adjustments or decisions for themselves. Don't assume they will be mad.

If your revised price does not work out for them then both parties know it before getting further invested in money and time.

Good luck

 Thanks Walter! Thats what I'm having trouble with, the estimates, I want to use the price per sq/ft formula like $40 per sq/ft but a lot of flipper and contractors I talk to say thats not an accurate way of doing it. How else would I know without being a contractor or having a contractor visit every property that I get under contract that I'm not going to give him the work for?

Hey so when we first started out this was the hard part. What I would do is a few things. If I knew that they were super motivated and going to sell that day I would call my main buyer (I would only work with one or two) and say hey what would you roughly pay for this. Since he buys over 150 homes a year at the auctions he would have a good idea. Then I would tie it up for as much below that price as possible. I would have an inspection period and go from there. This worked out great. My advice with new people is to find 1-2 buyers that you trust. Walk the property and take photos, then send to that buyer and say hey what would you pay (need to have trust that he won't go behind you but I trust first) then get it under contract for less than that! Also you can hire an inspector to do a visual walk through which is usually $200 so you can start learning what to look for. 

Originally posted by @Elliot Smith :

Hey so when we first started out this was the hard part. What I would do is a few things. If I knew that they were super motivated and going to sell that day I would call my main buyer (I would only work with one or two) and say hey what would you roughly pay for this. Since he buys over 150 homes a year at the auctions he would have a good idea. Then I would tie it up for as much below that price as possible. I would have an inspection period and go from there. This worked out great. My advice with new people is to find 1-2 buyers that you trust. Walk the property and take photos, then send to that buyer and say hey what would you pay (need to have trust that he won't go behind you but I trust first) then get it under contract for less than that! Also you can hire an inspector to do a visual walk through which is usually $200 so you can start learning what to look for. 

 Thanks Elliot! I like that idea, I'm going to call some investors up right now and see if they are willing to do that with me. I have a couple in mind that I trust. Thanks again!

Originally posted by @Justin Westmoreland :
Originally posted by @Elliot Smith:

Hey so when we first started out this was the hard part. What I would do is a few things. If I knew that they were super motivated and going to sell that day I would call my main buyer (I would only work with one or two) and say hey what would you roughly pay for this. Since he buys over 150 homes a year at the auctions he would have a good idea. Then I would tie it up for as much below that price as possible. I would have an inspection period and go from there. This worked out great. My advice with new people is to find 1-2 buyers that you trust. Walk the property and take photos, then send to that buyer and say hey what would you pay (need to have trust that he won't go behind you but I trust first) then get it under contract for less than that! Also you can hire an inspector to do a visual walk through which is usually $200 so you can start learning what to look for. 

 Thanks Elliot! I like that idea, I'm going to call some investors up right now and see if they are willing to do that with me. I have a couple in mind that I trust. Thanks again!

 Awesome! I did a few podcast on the real dealz podcast that I talk more about this. The first was before we went full time and the 2nd after we did. He also has a great podcast for this stuff. 

Originally posted by @Elliot Smith :
Originally posted by @Justin Westmoreland:
Originally posted by @Elliot Smith:

Hey so when we first started out this was the hard part. What I would do is a few things. If I knew that they were super motivated and going to sell that day I would call my main buyer (I would only work with one or two) and say hey what would you roughly pay for this. Since he buys over 150 homes a year at the auctions he would have a good idea. Then I would tie it up for as much below that price as possible. I would have an inspection period and go from there. This worked out great. My advice with new people is to find 1-2 buyers that you trust. Walk the property and take photos, then send to that buyer and say hey what would you pay (need to have trust that he won't go behind you but I trust first) then get it under contract for less than that! Also you can hire an inspector to do a visual walk through which is usually $200 so you can start learning what to look for. 

 Thanks Elliot! I like that idea, I'm going to call some investors up right now and see if they are willing to do that with me. I have a couple in mind that I trust. Thanks again!

 Awesome! I did a few podcast on the real dealz podcast that I talk more about this. The first was before we went full time and the 2nd after we did. He also has a great podcast for this stuff. 

 Great I’ll definitely check it out. What episodes? 

Originally posted by @Justin Westmoreland :
Originally posted by @Elliot Smith:
Originally posted by @Justin Westmoreland:
Originally posted by @Elliot Smith:

Hey so when we first started out this was the hard part. What I would do is a few things. If I knew that they were super motivated and going to sell that day I would call my main buyer (I would only work with one or two) and say hey what would you roughly pay for this. Since he buys over 150 homes a year at the auctions he would have a good idea. Then I would tie it up for as much below that price as possible. I would have an inspection period and go from there. This worked out great. My advice with new people is to find 1-2 buyers that you trust. Walk the property and take photos, then send to that buyer and say hey what would you pay (need to have trust that he won't go behind you but I trust first) then get it under contract for less than that! Also you can hire an inspector to do a visual walk through which is usually $200 so you can start learning what to look for. 

 Thanks Elliot! I like that idea, I'm going to call some investors up right now and see if they are willing to do that with me. I have a couple in mind that I trust. Thanks again!

 Awesome! I did a few podcast on the real dealz podcast that I talk more about this. The first was before we went full time and the 2nd after we did. He also has a great podcast for this stuff. 

 Great I’ll definitely check it out. What episodes? 

 Hey episode104 and 123. But I would listen to as many as you can they are all good.

Originally posted by @Elliot Smith :
Originally posted by @Justin Westmoreland:
Originally posted by @Elliot Smith:
Originally posted by @Justin Westmoreland:
Originally posted by @Elliot Smith:

Hey so when we first started out this was the hard part. What I would do is a few things. If I knew that they were super motivated and going to sell that day I would call my main buyer (I would only work with one or two) and say hey what would you roughly pay for this. Since he buys over 150 homes a year at the auctions he would have a good idea. Then I would tie it up for as much below that price as possible. I would have an inspection period and go from there. This worked out great. My advice with new people is to find 1-2 buyers that you trust. Walk the property and take photos, then send to that buyer and say hey what would you pay (need to have trust that he won't go behind you but I trust first) then get it under contract for less than that! Also you can hire an inspector to do a visual walk through which is usually $200 so you can start learning what to look for. 

 Thanks Elliot! I like that idea, I'm going to call some investors up right now and see if they are willing to do that with me. I have a couple in mind that I trust. Thanks again!

 Awesome! I did a few podcast on the real dealz podcast that I talk more about this. The first was before we went full time and the 2nd after we did. He also has a great podcast for this stuff. 

 Great I’ll definitely check it out. What episodes? 

 Hey episode104 and 123. But I would listen to as many as you can they are all good.

 Thanks will do! 

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