I'm still trying to get my first wholesale deal. I now have a potential deal. The seller that I have been talking to gave me a verbal confirmation (I know that a contract is better) that they agreed with a 70,000 sells price. Property is a 3/2 1,916 sqft property with a 600sft 2/2 apartment with private access attached to the back of the house. The ARV on this property is 129,000 with about 18k in repairs (is this even a deal?).
I'm apprehensive about sending the seller the contract (I guess 1st deal nerves) because a realtor is involved. The seller is out of state and I have to coordinate with the Realtor to have access to the property. The seller wants the 70k all at closing with me left to pay the realtors commission out of my profit. I could use some advice with this one.
Emmanuel great job on your 1st deal! I have done 51 deals now, & tons that didn't happen :) that is totally a deal! lock it up right away, tell the agent you will take care of him & get him his fee out of closing, standard is 2%-3% so that would only be $1,400-$2,100 just make sure your wholesale fee is more than that, I would do say 5k-7k, if not 10k, and you would just assign it to a buyer, hopefull you have some,
If you are going to wholesale this deal, you have more obstacles. Many agents will not allow the house to be assigned
The agent is going to realize you’re not actually a buyer.....it makes no sense for an agent to advise their seller to tie up a property with someone who can’t buy and is Hoping to find a buyer for a higher price.
If your numbers were accurate, it would have sold by now.
If you like the realtor you can hint you will use him again to list.
@Tony Escobedo I don't have a buyer trying to get one now. Do you have any info on how to get cash buyers?
@Roland Paicely will that matter if I send my contract to the seller. I have not sign anything with the Realtor. Will I have to?
If the house is listed you have no choice but to go through the realtor
@Wayne Brooks they were asking 91k originally for the property. I'm in a rural area so their were not a lot of com is to go off of. I was thinking the ARV would be that much because I comp it with other 3/2 properties in the area. I did not included the fact that it has and additional 2/2 apartment on to it (no like 5/4 properties in area).
@John Thedford so when do I send the contract to the seller or the realtor? Once the contract is signed how am I legally obliged to the realtor. I don't have no problem paying the realtor 3% of my profit. I just want to make sure I do it right.
The seller of the property is legally obligated to the listing agent