[Larry Niskey]

Larry Niskey

Hi All,

I see a FSBO advertised online a 3/1 SFH seems to need very little work. Asking price is $139,900 and ARV is $200k.

I was thinking of offering an all cash option at $129,900. Then assigning to a wholesaler for $10k. Any thoughts? Thanks Nick

[Jackie Lange]

Jackie Lange

Hey Nick

NO DEAL the way you are planning to structure it.

A wholesale buyer is looking for wholesale prices. That means 30-40-50+ % below market.

Before you start making offers, yu need to determine WHY this seller is selling a $200k house for $140k. Maybe it is really not worth $200K. You need to determine that.

Would they do seller financing, with a low down then monthly payments?

What work needs to be done?

Is there an existing mortgage on the property? If so, what is the balance? are the payments current? What are the payments? Are taxes and insurance included in the payment.

Bottom line, you need to use the SELLER QUESTIONNAIRE which is in the File Vault to ask the seller a lot of questions. After you ask the questions, tell the seller that you need to do a little research then you can get back to them with an offer… tomorrow.

Let us know the answers to the questions.

Check the price of the home on zillow and other sites to see if it is really worth $200k

Once we know the REAL scoop on the property, then we can help you formulate several offers.

If you offer 2 or 3 ways you can solve the seller’s problem, you will increase the odds that the seller picks one of them. This is better than making one offer that you have a 50% chance the seller will reject.

This should be the order when you are dealing with any seller

1. ask questions, gather information, determine WHY they are selling ( level of motivation)
2. do research, comps, neighborhood, etc
3. formulate offers
4. make several offers which fit with the sellers needs and your needs.

This works much better than just making a blind offer.

[Jackie Lange]

Jackie Lange

Also… do you have a buyer’s list? Who would you flip to if you got it at a good price?

Would you consider keeping the property if you could get in with low low down and low monthly payments OR a master lease?