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Updated almost 10 years ago,
Wholesale Deal Structure
Good evening BP,
I have a question,
If I can get a seller to take 60% or less of the ARV and also subtract repairs, is it possible as an incentive to get the seller to accept the offer that I tell the seller after the home sells I will split the profits with him in exchange for him taking a low price?
Example, ARV is 100k, 10k in repairs, I offer $40,000 to close in two weeks. Fix up the property and I'm all in the deal for $55,000. Sell the house for $100,000. 45k in profit, give the seller $22,500 after I sell the property months later.
Is that possible? I'm thinking it is and just wondering how to structure it. I've never heard anyone mention this as a strategy to close more deals but it seems to be a great way to get sellers to take less on a wholesale deal.