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I had a wholesaler come to me with a deal that looked like it needed work, but the price he locked in was too high (after figuring costs).

He brought the deal to another investor who wanted to just buy and flip it.

Well, according to the other investor, he said since it was listed for a certain price, regardless of whether the comps were 50K less, because it was listed you couldn't just up and flip it for more.

He thought the wholesaler was dealing with an unlisted/FSBO.

Is this right? If so, I'm assuming if you fix it up, you can reprice and make profit.

Thanks,
Al
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I had a wholesaler come to me with a deal that looked like it needed work, but the price he locked in was too high (after figuring costs).

He brought the deal to another investor who wanted to just buy and flip it.

Well, according to the other investor, he said since it was listed for a certain price, regardless of whether the comps were 50K less, because it was listed you couldn't just up and flip it for more.

He thought the wholesaler was dealing with an unlisted/FSBO.

Is this right? If so, I'm assuming if you fix it up, you can reprice and make profit.

Thanks,
Al

Thanks Ryan!

20% of what he invested. And yes, paid upon the close of home (post fixups)

20% too much? 10K = 12K.

What if we split all the fixup costs down the middle - is 20% still fair?

Hey all!

I'm talking to a buddy about possibly getting involved with a few of my projects by investing in the fixup costs. I've got a few deals that need 25+K in work and I'm sort of tight on cash.

What's a fair return? 20%? At the close of sale on property?

Thanks,
Al

I'm in escrow now. I'll keep y'all posted.

:lol:

I agree with everyone's responses.

Unless you've got spotless credit (730+), most banks won't even waste their time.

Reasons to go with a broker: access to multiple lenders (I could say 100s, but that'd be a tad over the top) to find the best rate, credit score doesn't have to be the best, specialization (most bankers do everything, and might not know how to tailor fit a loan to your needs).

Obviously my opinion is slightly biased :D
(see blog)

Yes, a website and little bit more would be nice.

Please email at [email protected]

Thanks!

Definitely do your research. Real estate is a great way to make some really good money, but you can also lose big money if you don't know what you're doing.

There are always deals out there to be had. One of the best pieces of advice I can give you is whatever market you decide to get into, study it inside and out. Understand market values and rents. This way you can spot a deal when presented to you.

Good luck!

Rich Dad, Poor Dad -Kiyosaki

Think and Grow Rich -Napoleon Hill

Awaken the Giant Within -ARobbins