Hello from Chicago we need help

[Ryan Driver]

We are in a bit of a situation in our 1st wholesale deal and wanted to reach out for some guidance. If you require some compensation for your help and time, We currently have a beautiful single family home in Elmwood Park under contract with our seller, they have been very helpful with working with us, the property is a turnkey so we thought we had a good price for it, however we realized it is retail price and investors do not want to pay that much for it. Despite our seller being very negotiable they have not agreed to drop the price on our deal, it stands at $500,000 and a close date of 1/20/24

We’re reaching out for help to move this deal, we know it is possible but not sure how we can get this sold to a buyer if the price is stuck, any help on this is greatly appreciated, we can send more information over as well! Let us know what you think!

[Mike Fingleton]

Hey Ryan, sounds like you’re in the thick of figuring out your first wholesale deal.. that can be both exciting and nerve wracking. If I were in your shoes, I’d start by breaking down the numbesr on that Elmwood Park home as if I were an investor about to buy and hold or fix and flip. Even if the property is turnkey and looks good on paper, a $500k list for a rental might be too hefty to attract the typical investor in Chicago right now.. especially if they can’t get the cash flow to justify the mortgage.
You mentioned the seller is negotiable but not dropping below the current contract price. One of my budddies in Phoenix once had a similar issue.. he took a swing on a property that was really priced for retail, but he ended up working with an agent who showed him a better approach by analyzing monthly rents, typical ROI, and pointing him to an out of state buyer who actually loved the deal. It reminded me that sometimes the right buyer isn't always local.. but the numbers still have to make sense.
Now, you might consider broadening your buyer pool.. maybe there’s a homeowner looking to move into a turnkey home with minimal repairs. Driving for dollars can actually help because you might find local folks around Elmwood Park who’d pay retail for a near move-in-ready property. But for most investors, a full $500k can be tough unless it’s in one of those prime markets like Austin.. San Diego.. or even Phoenix. (from what I read in The Economist, that’s where a lot of growth is popping up).
Since your goal is to move this deal before 1/20, time is crucial. Don’t just rely on typical marketing blasts.. try to figure out, “Who’d see the most value in this property right now?” If you can show them the math works for their situation... then that $500k might not feel out of bounds. You could also explore tapping your local realtors who specialize in investor relations. A good realtor can analyze the property’s cash flow potential, double check comps in real time, and connect you with real prospects, from what I’ve heard.
Where do you see the biggest hiccup.. seller expectations, or buyer hesitaion?