Excessive Profits. How much is too much?

[Daniel A.]

I am starting this topic to open a dialogue regarding acceptable investor returns. What I mean by acceptable investor returns is as follows:

THE TOPIC:

At what point is the investor being greedy?

I will use the example of a $250k dollar After Repair Value sale price, for the sake of simplicity.

$250k ARV
-$40k Rehab
-$20k Closing Cost (8%Total CCt, including commission).
________
$190k Available Gross Profit

Bellow $150k Purchase Price (PP) = $40k+ Net profits
$150k PP= $40k net profits
$160k PP=$30k
$170k PP=$20k
$180k PP=$10k

THE CONFLICT:

Many REO brokers are incentivized by their inventory source (the Banks) to sell at the highest and best price. Investors want to buy at the lowest possible price.

An agent told me "..I don't want to represent greedy investors who try to put in low ball offers" "I don't want them as clients"

THE DIALOGUE:

Whatever your background, please feel free to weigh in on this topic. Please be as open, and as detailed as possible with your reply.

[Dan Koch]

We as investors are taking all of the risk. It is not greedy to want enough profit in the deal to cover unforseeable expenses with a property.

It is easy for the agent to say that about you when they are not the ones with their necks on the line.

He/she just doesn't want to write a bunch of offers so I would call them LAZY.

Just my 2 cents.