I FINALLY DID IT!!!
I put out an offer on a SFR…IT WAS ACCEPTED!!!
The numbers are as follows:
Agreed Purchase price: 53.2K
Okay This Person wants 1k deposit for this deal(It goes toward purchase price). My plan is to shop the deal and tell the investors what I want a 1K deposit then give it to the seller and then assign the contract to the other investor. I have 15 days to close. I stand to make about 2.7K on this deal. I have not signed the contract yet, due to me not having the 1K deposit. Should I wait to sign the contract and then shop the deal or go ahead so I can get a deposit?
UPDATE: I just recieved the pappers by FAX. Turns out, the “seller” is another wholesaler and wants to assign the contract to me…What Should I do??
Can the deal still be done?
That’s great, Congrats!!!
Your numbers look OK you are at about .66 on the dollar, which is good. And you have your exit strategy, that’s good too.
Now it sounds like you don’t have the grand to loose if you can’t get this pig closed in 15 days, right.
First thing I would do is go back to the seller and renegotiate the deal. You need more time to market this thing. Get at least 30 days and try to get the EM way down (when I buy junkers I never give anymore than $50). That 15 days to find a buyer and 15 days for them to close.
Now if you can get 30 day you have to figure out how are you gonna find a buyer. What is your marketing plan?
A few suggestions:
- Ad in the paper (not my favorite but works)
- Bandit signs that say something like “HANDYMAN SPECIAL MUST SELL FAST CASH” (every time I buy a wholesale property I put out 50-100 signs per week until it’s sold) it’s also a great to build you Buyers List. Get name, # and email
- Get down to your local REI club and start flapping you lips you have to let people know what you have.
- Craigslist is also a great way to sell your property (post your property with a pic 3-4 times a day everyday until it’s sold.
You will need a cash or hard money buyer, when you are talking to potential buyers you must find out how are they gonna fund the deal. If they are not cash or hard money buyers just get rid of them and find some one that is. Have it written in your contract with the buyer that they must provide you with proof of funds or a letter from their hard money lender stating that they will fund the deal within 4 days of signing the contract. If they can’t they are not your buyer and move on to the next.
NOW THIS IS VERY VERY IMPORTANT NEVER EVER STOP MARKETING THE PROPERTY UNTIL IT HAS CLOSED. And dont be afraid to take back up contracts
Here’s a little free advice that I wish some one had told me when I first started. This bussiness lives and dies by marketing. If you don’t want to spend money on marketing you are not buying houses and you are not selling property.
Good luck, now get off the computer and get that house sold!!!
I think you should punt.
Unless you already have the property pre-sold, I would not get involved in this daisy chain. There’s really not enough fat in the deal to get excited about it, anyway.
Moreover, you don’t have the thousand dollars.
If I were you, I’d be candid with the wholesaler. Tell him you’re a wholesaler, too, and you’d like to help him market the property for a piece of the action.
I told him that I was another wholesaler and he said that it’s TOTALLY OKAY!! He has no problem with it. He says I can tell my buyers about it and if I’m worried about them screwing me out of the deal after I tell them about it to just to tell him their names in case they call him, no numbers needed.