Real Estate Agent · Denton, TX · Member since 2012 · 34 posts · 0 votes
I got a call today about a tri-plex in Ft. Worth. These are the numbers the "finder" is giving me:
Investor price: $105K
Repairs: $30,000
ARV: $165K
4/2 rents: $900/mo
two 2/1's rents: $600/mo each
What seems fishy to me, the finder is asking for 1% of the final sales price I make with the seller. The seller is a wholesaler and is in the process of purchasing the property.
It seems to me there is one extra person in the this equation....
I would think if I'm paying for a lead that leads me to a deal I close, that lead should be with the actual seller and not another wholesaler if I'm doing all my own negotiations??? What am I missing?
Real Estate Investor · Riverside, CA · Member since 2013 · 42 posts · 8 votes
13y
Niki,
I have SFRs in Fort Worth and the numbers look good to me, but I would ask more questions: Is there an inspection report? Are there foundation problems? I have had foundation repairs on my properties that cause plumbing issues that cause structural issues, etc. I would say that the finder's fee may not be the biggest cost- but if your going to have a middle man, make him work for it. Have him get a foundation repair estimate and take enough picture that will leave no doubt about the condition before you go any farther. MBR foundation repair- Lance Boyer, is the best foundation guy in FW, IMHO. Rents look good (not great)to me but I wouldn't budge until you see an inspection report and a foundation bid.
Real Estate Agent · Denton, TX · Member since 2012 · 34 posts · 0 votes
13y
Thank you so much John for the input. I agree with you about the middle man. I'll get back to them and see if they can get me pictures and foundation repair estimate.