Updated almost 13 years ago on . Most recent reply
Contract Negotiations
I just received a counter offer back for a duplex I plan to wholesale. The seller wants me to change responsibility of title insurance from "seller" to "buyer" (ok, sure). Include terms of financing I am seeking (I plan on wholesaling this to a yet determined buyer so I am not exactly sure) and asked me to come up another $10k. Asking was $55k, I offered $35k after doing a walk through and some due diligence on the property. The ARV is approx. $60k. The duplex is fully rented, bringing in a total rent of $1350/mo. Could use a deep cleaning and some minor repairs (new front door, fix soffit, paint, carpeting & damp in one corner of basement).
So, how should I counter? I personaly do not plan on purchasing this property, so what are my acceptable financing terms?
I will probably come up to $40k, but thats my max. I really wanted to present this property to my buyers as a $50k all in deal. But, the rents are there. Both tenants have been there for 2 years each.
Also, when wholesaling, what are you supposed to put for where title closing will take place? What if my buyer has their own company they use versus the one I want to use? Does it even matter??
Any suggestions, advise, ideas, comments are greatly appreciated!