All Forum Posts by: Sage Jankowitz

Well the property is already under contract. The issue is simply a matter of getting inside. That's where her lack of motivate lies.

It just seems a little premature to totally abandoned this deal, no?

Welcome Don, you've just found the best place to educate yourself on all things REI. I'm a wholesaler based out of Newton, MA and I couldn't have started my own business with the help of the BP community!

Bill, I'll definitely bring that up to the wholesaler, but I have a feeling he doesn't want to go down that road with this angry owner. Are there any incentives one could offer the homeowner outside of money that has worked in the past for you?

So here's the situation:

A wholesaler recently came to me with a property he is trying to unload. I was able to find an end buyer who loves the property based on the numbers. Unfortunately the current home owner isn't willing to allow the property to be shown. Obviously she's going through a rough time right now. The wholesaler has offered her money and she still has said no. The end buyer has made it clear that if he can't get inside to estimate repairs he's not going to close on this property.

Beyond offering the homeowner money, does anyone have a creative solution to this problem?

I have to disagree with Jeremy about shooting for 10-15% list price on the MLS. The list price has NOTHING to do with your offer. If a property is LISTED at $50K and it's worth $130K, then you could offer $55K and you'd still be running away with a hot deal.

What you're concerned with is what your investors want, NOT list price. A seller can list their home at whatever they want. It might be close to FMV, it might be WAY underpriced and it might be WAY overpriced. Bottom line, do your own due diligence, and make offers that leave enough room for both your investors and yourself.

Pedro I can tell you right now, there are multiple wholesalers in EVERY state getting it done. It comes down to finding what investors in your area are looking for, and then undercutting that price.

If the investors in your area are looking for properties at 65% ARV - repairs, you need to find 65% ARV - repairs - your fee.

Thanks Guys,

I've forwarded all your thoughts onto my friend and I think I've done all I can do at this point. Now the choice is in his hands...

I should also mention this guy has ZERO experience in RE investing. He doesn't understand cash flow, he's looking for an investment where he won't have to spend a lot of time at the property, and in his eyes losing some cash every month might be worth it if he has low hassle tenants. I've tried breaking it down for him, but I'm not sure he's getting the message...

You would think Chris, but I'm still having a hard time convincing him. I'm not sure what else I can say, and I was hoping some of the old timers could chime in with their thoughts to explain why this deal isn't even close to making sense under ANY circumstance.

So I just went to dinner with an old friend of mine and he mentioned that he just got his first investment property under contract. It's a two family in a pretty nice area of town. He's having the inspection this week and I told him he NEEDS to get out of the contract. Here are the specifics, and please give your candid feedback so I can pass on to him!

$385,000 Purchase Price
$2,200 Gross Monthly Rent
$1,100 NOI
$385K Mortgage (30 years, 7%) = $2561
-$1,460 per month LOSS