First conversation with potential seller

[Erica Kirkland]

Hello everyone! So I am a newbie and I have located a property I may want to wholesale and will be calling the owner today. However, I am slightly confused on how this convo should go. I will ask if he is even interested in selling but if he says yes...do I setup a time to see the place? If he says yes than what?!...due diligence on ARV and comps and have the paperwork ready for when we meet to make an offer and get it under contract? or do I wait until I see it? I feel like I should be prepared before hand so I am not wasting time on getting it under contract to flip it but I also realize building rapport is as important. Just need a little guidance. Also, anyone have a good legal wholesaling contract they care to swing my way?...I do have one but really do not know if its sufficient Thanks ahead of time! :)

[Andrea Weule]

Congratulations for taking Action!

When on the phone I try to find out as much information as possible.  This allows me to be almost ready to make an offer when I arrive at the home later.  Also, it saves me a trip to the property if they are not motivated at all.  So he's how my conversation goes:

Tell me about your home (get them talking)

Why are you selling? (how motivated are they)

How quickly do you need to sell? (how urgent is this motivation)

Try to feel out repairs: What updates have you made?  Are they any updates you wish you had?  

From there I can look up comps online for the ARV and take a 25% discount from that minus repairs

ie $200k x.75% = $150k - $25k repairs = $125k Wholesale Price (price buyer would pay)

then subtract $5k - $10K for yourself  $115k - $120k is your offer

This allows me to have a solid idea when I look at the house so I just now have to do a condition inspection.  Is it in rougher shape then it sounded on the phone - then take more off for repairs (ie an additional $10k so offer $105k initially)

Yes, have the contract paperwork with you.  If they say yes to your price, then don't miss your window to get it locked up!

Best of Success!