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