Getting a Deal.

[Tracey Little]

Hello BP family, I'm a newbie trying to figure out wholesaling.  I live in Baltimore, Maryland and my partner and I have started looking at properties and lots.  I've started placing prospects on a list and have been trying to track down who owns said properties/lots.  I have found some numbers.  I have some questions I hope others can help me with.

Questions:

1. If the owner is a LLC or Municipal, how do I contact them?

2.  If the lots has a cash value can I negotiate the price down, or do I have to pay that price?

3.  Shouldn't I have a buyer before I contact the owner to sell?

4.  How do I use the BP analyzer for vacant lots?

5.  How do you come up with the assignment fee for the deals?

Thank you for your help family!!!!

[Andrew Michael]

Hi @Tracey Little and welcome.

1- Look up the property info on the MD SDAT site and send them direct mail to the mailing address. If an LLC, look up the on the SDAT site and then get the owner and business mailing address. If all else fails, you can skip trace the number but you will likely need to subscribe to a service to do so.

2- Everything is negotiable 

3 - No necessarily.  I would have some sort of plan to market the property to prospective buyers but if you have a good deal the buyers will come.  A good place is always your local meetups or any real estate related networking event.  You can also place adds on places like BP and Craigslist.  

4- I wouldn't.  Vacant lots typically require more knowledge and planning.  You will need to check zoning, building codes, district boards, etc.  You will also need to have a decent idea of what the market demands, the costs of a ground up construction and of course a solid estimate of your out value.  In my opinion vacant lots are a little harder to start with.

5 - Work backwards. Figure out the ARV subtract the renovation costs subtract the flippers profits subtract your desired fee. That will leave you with your max offer.

((ARV - Rehab) x .75) - Assignment Fee = You max offer