Wholesale property not moving??

[Krystal Adeoye]

I have a house under contract in Canton, OH. My plan is to wholesale it. Comps range from $12,000- $50,000. Repairs estimated between $15,000-$20,000. The house is under contract for $14,000, and I am asking $18,800. I have placed ads on Craig's list and put up bandit signs. Nearly 20 people have called, but none have made an offer. I am concerned that the price is too high. What do you think?

I plan to send out letters to real estate investors in the area. Someone suggested I use this format below. 

***

I desperately need to sell my property I own at _______

I’ve had it listed with a realtor for sometime now and I can’t wait any 

Longer!! Take a drive by and call me and I will let you in.

The title is clear, taxes are paid, condition is good and I need it sold

A.S.A.P 

Drive by call me and make me a cash offer right now…

Thank you,

****

To me, it seems that the recipient may think it is a fake letter, and I also do not want to say I am the owner of the house, because I am not. How would you suggest I structure the letter to the cash buyers as a person who has a prop under contract looking to wholesale it?

-Krystal

[Account Closed]

From your comps.. I would guess the cash buyers are buying at the low end.. ~$12K. In the MLS, you can see who's buying and paying cash.. They buy at the low end and those are your cash buyers, and you know what they're paying for property in that area (sounds like about $12K). Further, you also can see who the selling agent (SA) was for the cash buyer. I would call the listing agents for the cash buyers and say you noticed they sold a property to a cash buyer near a property you have on the market, would they be interested? I have found buyers that way to wholesale my deals to.

As far as price.. If you take the top end.. $50K x 70% you get $35K. If you subtract out $20K repairs you get $15K. So, your price to the investor needs to be below that, assuming your comps are accurate.. And that's using the *top* end of your comps.. Thus, you should have it under contract for about $10K, if you expect to make money on it and move it. If need be, you could sell at the low end of your comps $12K and still make money.

If you can't move it, and you've talked to 20 buyers.. you're priced too high!

That's my 2 cents..