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Author Topic: Not Sure What I Should Say?  (Read 3505 times)

Offline wr1ght7

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Not Sure What I Should Say?
« on: October 31, 2004, 02:12:10 pm »
Hello Everyone,

I am about to do my first deal by wholesaling a property.  But a question came about from a friend of mine that I could not quite give a clear answer to.  My question is:  Say I'll have a property for $100,000 and the market value for it is $120,000.  When I try to sell it to another investor for say $105,000 and he knows the FMV is $120,000, if he asks me why I would want to sell him this property for a price under FMV with $15,000 equity in it, what should my reply be?  
Should I tell him because I don't have the credit to buy it outright?  I mean I would think that he would see if I don't close on the deal and try and pick it up himself for $100,000 instead of $105,000.  Or do I tell him what I do, which is wholesale properties?  I am just a little confused as to what I should say to this guy.

Thanks for you guy's help,
Richard


Offline Jeff Adam

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Re:Not Sure What I Should Say?
« Reply #1 on: October 31, 2004, 09:42:51 pm »
Wright:
You tell him you are a real-estate investor who buys 4-5 properties a month.  Tell him you don't  like to deal with contractors and real-estate agents and would rather 'wholesale'.  Also, when you present a wholesale deal, dont tell your wholesale buyers what you paid for it until they commit to buying it.  It should not matter.  If you offer me a property for $120k worth $180k and I can make some profit, who cares if you paid $20k for it!

ALso, you example the spread is too tight.  You need to 'wholesale' your properties to your wholesale buyers with at least $30k equity..  

Now stop asking what-if's what-if's get out there and do some deals!  

Best Riches,
Jeff Adam
« Last Edit: October 31, 2004, 09:47:33 pm by Jeff Adam »
www.ForeclosureProfitsUSA.com
"Take Your Real Estate Business To The Level"

Offline wr1ght7

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Re:Not Sure What I Should Say?
« Reply #2 on: October 31, 2004, 11:50:13 pm »
Thanks for the advice Jeff, it helped a lot.  You're right it is time to go take action and stop asking what-ifs, but I wanted to TRY and cover as many bases as I can before I venture out to conclude my first deal.  Again thank you for all the advice.  And I will be letting everyone how my first deal goes.  

God Bless,
Richard C. Wright

 




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