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All Forum Posts by: Stevie Dickson

Stevie Dickson has started 1 posts and replied 4 times.

Quote from @Nick C.:

If the house is going on the market tomorrow, it's extremely unlikely that the seller hasn't already signed a listing agreement with the realtor. If this is the case, and you're tacking on a 20k wholesale fee, this means the property should sell for 20k more than you're offering when it goes on the open market. Why would the realtor advise the seller to take 20k less than the property should sell for?

Generally speaking if a seller signs up with a realtor it's too late to turn it into a wholesale deal. You need to find sellers that don't know what their house is worth, and that aren't represented by someone who knows what the house should sell for. 


 Thats super logical. I will remember that. I originally was dealing with just the owner without any realtor in the picture. I guess I got caught up and didn't even consider the change of who I was dealing with. Maybe I will try to make an offer that will work with me keeping the property as a rental IF they list it a price where that would still work. 

THANKS for your comment.

Quote from @Dwayne Poster:

Sounds like the Realtor may not have a signed listing. Drive your offer straight to the owner. He’s got a comm sitting in front of him to weigh. I get this often. Your numbers need to make sense to you.

 Thanks! That actually makes sense. 

Hello,

Im looking at a property that has been vacant for many years. I finally got in contact with the owner, that said they wanted to sell but had to take care of some things first. But before getting a realtor they would contact me, giving me a chance to make them an offer... Well, its months later and I see a guy at the house with it open. I stop and introduce myself. He said he was the realtor and it was for sale. I did a walk through, told him I was interested and ask him to get me a number. Days later I hadnt received a number. So, I went ahead and wrote up one and emailed him an offer, texted him and told him to check his email, that I has sent him an offer. He later texted me back and said he would present it to the owner. I still havent heard from him. An associate contacted him as if he were interested and buying. The guy told him that THEY were going to access the property tomorrow and have a price and that it would be going on the MLS.

Here is where I need advice.

The market here is hot. I DO NOT want it going on the public market or MLS where there may be competition and more of a challenge to get my offer accepted. So, I have less than 24 hours to make something happen. But I dont know what to do, or if there is even anything I can do. The guy doesnt talk to much. I have ask for a number. I have submitted an offer and Ive offered to buy "AS IS" and CASH with no contingencies except a short inspection contingency.

This is my first potential deal, but its not looking good. I offered $40,000 with the intentions of being willing to go up to $45000

Are my numbers wrong? Am I doing something else wrong?

My calculations:

Sqft of House1798
ARV Price Per Sqft$82
ARV Sale Price $147436
Rehab Cost$40,000
Estimated Closing Costs $13269 (9%)
Estimated Carrying Costs $8846 (6%)
Desired Profit $22115 (15%)
Desired Wholesale Fee$20000
Buy Price$43205