Wholesale – Offer from Investor (Buyer)

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  • Hi all,

    Quick question I have after reading the book Flip Deals:

    Let’s say you have an option with a Seller for $50,000 and you want to make $5,000. Your target price to your investor is $55,000. Do you mention this price or wait for their offer after visiting the house?

    I would assume it’s the latter, but I just want to be thorough. Obviously if you don’t mention it they could think it’s worth $60,000 and you make twice the profit. I don’t want to be greedy and definitely want to keep my relationships intact so please let me know any thoughts.

    Thanks in advance!


    If $60,000 works for your buyer, then ask for it. They can always offer less.
    Its up to you to decide if their offer works for you.

    You are correct, this is a relationship driven business.

    Sometimes, you may be able to go back to the seller and see if they will take less if that’s the only way for everyone to get paid.

    Your first few deals will teach you a lot about what works for your buyers.
    And your repeat buyers are the ones that fuel your business (and theirs).

    Keep us posted,


    Thanks for the reply Mike.

    To add to that scenario, let’s say I tell the Buyer $60,000 and he will only go as low as $55,000. I need to get the price lower from the seller in order to make profit. Do I have to write a new contract with the seller or do you alter the original contract? If you write a new contract I guess you would need to legally acknowledge the original is null and void?


    If I understand correctly, you mean the SELLER will only go as low as $55,000? If so, try to find a buyer that will enable you to make a profit.

    Or ask the seller to reconsider, its either pass or play. They get paid a little less or nothing.
    A truly motivated seller will normally take a little less rather than risk losing all the money.

    There are always other ways structure the deal, but for all cash, greed seems to pop up.

    As far as a new contract is concerned, if you’ve opened escrow, ask the title company what they require to ensure this works.

    If anyone else has other suggestions, please jump in.

    Hope I understood you,



    No I meant Buyer. Let me expand more and rephrase.

    Say I have a contract to buy from a Seller for $55,000. I find a Buyer and tell him $60,000 but he says the most he can pay is $55,000. Now I need to renegotiate with the Seller in order to make any money on this. What steps do I take to cancel the original contract to buy? Do I just modify the price and get everyone’s initials? Or does this require a new contract?


    Regarding the contract, it depends on the laws in your state and the requirements of your title company.
    If there is an experienced CFD member in your area who does wholesaling, they’d be the best source.

    Again, with the seller, go back and see if they’ll take $50,000.

    You’ll get better at negotiating these deals as you gain experience.

    Hope you close this soon,


    If this is your first time making offers you need to keep in mind the “hidden” costs that need to be addressed in your offer and your contract.
    Who pays for real estate taxes? Who pays for title work and title insurance? How pays for the latter day search? Who pays for document preparation?
    Who pays for attorney fees and or title company fees? Just things you want to address in your contract when you present your offer. The way I like to do it is put all of those costs to me the Buyer’s responsibility. This way the Seller is getting a net figure were there will be no surprise deductions at closing.
    I tell them this is the net figure you will receive in certified check or bank wired funds which is your choice. Do I do this each and every time, no, I try to tailor each deal.

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