Potential Deal in the making Help!

[MamaKaranja]

So if you want to use 70% like they were doing in the bubble (more like 65% in most areas today) than you have
80K - 30% = $56,000 - $15K = $41,000 minus your assignment fee.

When you post your numbers, do not put your assignment fee in the repairs. Using this mathematical formula, MAO is a number that the flipper buyer is concerned with. Figure that first, then subtract what you want out of the deal.

Hooch...are you saying that my post should read ...asking price is $45 K+ $15 K (repairs) only ?,for  a total of $60K ?.....then claim my assignment fee from buyer ?....where do I insert the my fee  not have I cause an upheavel with the private seller ?

[Hooch]

You are doing it right. What I was saying is in determining the value TO THE FLIPPER and when posting your numbers it should look like this.

If you thought the ARV was 80K and the repairs were 15K....
80K - 30% = $56,000 - $15K = $41,000 minus your assignment fee.

The $41,000 is what the Flipper is going to want to pay for it. Then you subtract your assignment fee. So if your assignment fee is 10K you would offer $31K for the house.

So your agreement is to pay the seller 31K, the flipper pays $41K and you get your 10K.

MAO is what the flipper will pay. It does not include your profit.

And I thought you said previously that the 15k that you told me was repairs, also included your profit.

That was my point.

[MamaKaranja]

So I did both a Voice blast/Email blast/Backpage/Kijiji/Craigslist /Rehablist.etc....got 2 callers to tel me that they price was too high... @ $55K MAO ..I don't think thats high...okay I asked for $58 K to make the max...I got believe in the power of  "...ask and believe..".
They are quoting $25 k- $35 K to make it worth their while....is that high way robbery or what?...It's only been a day since my campaign launched....I gotta hear from other folks....YOUR TAKE?

[Hooch]

You are right, you have got to hear from more people. Also every where you go you sell it to everyone you talk to. Tell the person in Burger King that you have an excellent wholesale house for sale. And that they will never find a deal as good as the one you're getting ready to give them. TELL EVERYONE! Tell all of the we buy houses people in your area. Many of them are wholesalers. Go to your local REI meeting and tell everyone. Every single person you run into.

Also, most wholesalers will start dropping their fees if there are no takers. $1,000 is better than $0! Am I right?

Then when all efforts are exhausted, if you don't sell it, we will talk more about what you need to buy for. This will be very good as it will teach you a valuable lesson. And EVERY SINGLE investor that you talk to that doesn't want it, ask them what their buying criteria is so you can find them a deal.

Wholesalers are always best off looking for specific property that they already know they will sell. Every investor has slightly different criteria that is "local" criteria. This neighborhood or that. Nicer houses or junkers. Rehab houses or ones that are already pretty much fixed up, etc.

okay I asked for $58 K to make the max...I got believe in the power of  "...ask and believe..".

This is definitely a good way to look at it. Just drop it if needed.

[MamaKaranja]

This s school alright....I'm asking valuable questions about what exactly they are asking for.I aso didn't want to hold steady  2 a price that may be too mhgh..so I emailed the owner with a complete justification for lowering her price...I  also unleashed Market value/Tax assesors info I got from the Phily Board of Revision of Tax/Phila.gov /GIS....for her revision.Told her that the investors went snifing  &  came back with   their need to buy at $25 k....because of partially fnished basement,no garage ect...told her I'll waqit another day to hear from more buyers....but just needed to give her a heads up of the feed back I'm getting.
Hope she gets backto me in good time with a good figure ..preferably $30 K...Your take?

[Hooch]

You're doing good. You can ALWAYS renegotiate deals. You have your thinking cap on! 

If she doesn't come back with a much better figure don't give up though. You will find buyers in strange places as long as you keep your mouth running and tell everyone you see about this incredible deal they should jump on. They don't HAVE to be investors. Just credit worthy.

[MamaKaranja]

Woah....she came back haaaaaaaaaaarddddd !!.she ain't selling for less than $45 K...she checked out the GIS doesn't thin two cents of it...she inteligently expressed her sentiments & that most of the homes currently on sale around her's ,occupied or not,all reflect the same amount in the GIS....advises that I look at these findings with a grain of salt....so I relented and held steady at her asking for now... she stated that a home  that was all boarded up and vacant for years sold for  $54 k ,in 2007...yeah I know ....I told her she can't compare a "robust market " in 2007 to the market today....never the less she ain't going down like that...so we are steady with one day of campaigning under the belt.

[Hooch]

I have had many sellers tell me of some property that sold during the peak of the bubble. Always call them on it! And then I tell them unfortunately the market isn't like that anymore and doesn't look like it will be for a very long time. But hopefully it will bounce back. The unfortunate thing is that there are many experts that say otherwise.

Give it some time. Continue to try to sell it. If you can't let her know why. I have also had many people come back to me after and say remember when you said you would give me __ for my property? And I tell them that I really needed one then and I am not in the same position now as I have found many but I am willing to talk to you about purchasing it. So now they are going to get spanked even harder because they wanted to play games before. 

Sometimes it takes a while of someone NOT selling their property until the get the point and they better take the offer that they got. I love it when they give it to some crappy realtor that doesn't want to spend any money on advertising it and the listing expires without it being sold. I will then approach them again with the same lowball offer and at this point they are much more receptive.

Now while your working on selling this one also work on getting some more locked up on a contract. You fill the funnel and deals trickle out the bottom. And once you have talked to many people you will find yourself going back to some old ones and making deals. etc.