I am a newbie and have found a house that will make a great wholesale OR at least i think so here is the scenario.
Vacant house GREAT CONDITION (just needs a little paint and cleaning)
Owner asking $28500
Property Value Aprox- $45000.00
Wholesale value - $38500.00
Small town USA No affordable houses in town (under $75000.00)
Plan to wholesale to Retail buyer
PROBLEM Owner wants all cash YESTERDAY
Have approached owner with the idea of my company actually doing the MINNOOR repairs while it is just under contract and then finding a retail buyer myself and doing a double close.
Owner rejected the offer saying just wants all money now doesnt care what i do to the property once it is mine.
Is this the right approach or should i have approached a different way? Should i move on to a more motivated seller.?
I’d probably move on to a more motivated seller. You need to pose the question to him… What is your underlying goal? “Either you can keep letting this house sit on the market, or you can let me help you get it sold fast. I understand your urgency in wanting to sell fast, but it needs to be done in a manner that makes sense for a cash buyer and and by someone (such as yourself) who is knowledgeable in this field and will do whatever it takes to sell your home fast. Heck, I’m even offering to repair your property, so it will be more attractive and open the gates to more buyers!!”
I’d say something to that effect. lol
If he still doesn’t want to move forward then…NEXT!!
Green acorn - if I understand you correctly, the owner wants to sell immediately and wants his money yesterday… And is willing to get less than market value for the house. This sounds like a motivated seller. If I apply what I have learned, you need to find what the seller wants. In this case it seems he wants cash now (not tomorrow). Is there a way for you to give him what he wants? If he is so desperate you can even offer less than he is asking. You would need to find the money somewhere - maybe a HML.
You could then turn around, fix the property and sell it.
I have approached the owner basically the same way that you have suggested and gotten the remark “When the property is yours I dont care what you do with it, but I do not want anything to do with having you in the property before we sign”
So i think that i will just move on. The property is actually not on the market so maybe ill wait a few months and see if the owner could be more motivated. It was just a house in my neighberhood that has been vacant for YEARS but is still in great condition.
I have been dealing with sellers and I will tell you that in this scenario finding a HIGHLY motivated seller would be worth your while. Highly meaning they really want to get rid of their properties!!
Your seller-----He wants $$ like yesterday however he is not willing to bend to facilitate this process of bailing him out/taking the house from his hands.
Motivated Seller = What do you need to get this done as soon as possible = Easier and faster for you the investor to get what you need to get done = Seller is happy and you are Making money!!!
NOT so Motivated Seller = I am desperate, I need cash now but I can’t do that or that…the this my way or the highway kind of attitude!!! = Headaches trying to convince them, they always get in the way and time is wasted = Besides you learning that they are not the best to work with and this is going nowhere… there is obviously…No Deal = No money!!!
Comestealmyhouse - (what an interesting name… I hope you don’t get what you are asking for… :O)
Anyway - thank you for the insight. I see your point about motivated seller and VERY motivated seller. I guess I would have spent a lot more time with this one, only to find out that he is not VERY motivated… I will keep your advice in mind.
I am a newbie to wholesaling. I have never done a deal. I was wondering what the easiest way is to get some legitimate training without spending upwards of $2000-$3000 on a course? Also any info on mentoring and/or partnering?
Tampa investor - I believe you came to the right place… You can read the forums and find a wealth of information. I learned a lot since I started coming here. There are a lot of people willing to share their experience/advice. You will need to do your own analysis and see if what they are saying make sense, though. Never take any information/advice for face value. Never forget that you don’t know any of the people here - actually you don’t even know if they are human beings or computers pretending to be human beings… :O)
The other thing that people here will tell you is to go to your local REIA meeting. I am going to my first this month. It is typically not very expensive. My expectation for my first meeting is to meet successful investors - I believe if you approach some of them you can get some “mentoring” without they even realizing that they are mentoring you… :O)
Comestealmyhouse - actually it did work… I went to your website to check it out… :O)
Interesting website - simple and direct… Do you get many leads? Have you thought about including some of the properties/deals that you have available, or have closed recently (like testimonials… I hear that testimonials is the name of the game… :O)
Hello Acorn, I’m a newbie myself but I have been to trainings on negotiating. One important thing is to have a max price you are willing to pay,of course, after looking at the numbers. You have to remember, if you can solve their problem and gain your profit then go for it. If not then you hand them your card and politely say, “If your situation changes please give me a call”. Another thing you should do is follow-up with the seller. Their situation sometimes change on a daily basis. So what they want today may change tomorrow or the next day. Jacque1