First time meeting a seller and making an offer, experience.

[Alejandro Flores]

I got a call yesterday (4/25/17) of an old lady saying she got my card that said "I buy houses" and that she would like to sell her house (absentee owner). I asked her questions about the house and then she went on telling me to go check on the house. I tried for her to tell me how much she would want the house for but she wouldn't tell me. So I was okay then, at least this will be a learning experience.

The next day comes which is today.  Went to meet her and made sure I came out as professional as possible, also I was able to make a really good report. I was really friendly told her that my business always try's to be as much transparent and honest as possible in everything. We had a good time before I made an offer. I checked the house out and was able to come up 20k of rehab. Before I gave my offer I explain how I came up with the 20k. Also, I told her the closing cost, realtor, holding costs of what I would pay, so she could see a reasonable offer.  

AVR; 170k

Rehab: 22k

Closing, holding, realtor: 22k (a lot but to be safe)

profit: 20%(15%- end buyer, 5% for to wholesale) 

Offer: 96k is the most but asked 75k to play around 

She then said the least she wants for the property is 125k. Then I explain to her. "okay the house in tip top shape is 170k, minus closing, holding, realtor, holding, it would be around 145k, minus repair it would be 123k. That's no profit for me." Then I gave the best options she would have, 1; selling with a realtor and hope to sell it (wait 6-12 months to sell), 2; keep it, 3; Fix it yourself and sell it at 170k or 4; sell it to me and I'll close quickly and get you cash quick and not worry about anything. 

I was seeing I wasn't going to get something. She then said she has other investor that will look in at her house, then I told her "well before you accept any other offer call me, I probably can beat their offer" left her my business card and some paper of my estimates and that was it. 

So this was an amazing learning experience, and I got to say I loved it! Even though I didn't get the house under contract it felt nice that finally after 2 moths I made an offer. A step closer to success on getting my first deal! Also, I got a question, should I keep in touch with the seller if so, how?