First Deal Need Help

[Lashinda Winters]

Hello All, I have had my first wholesale deal under contract for a couple of weeks. I know my mistake was not getting it under contract lower but with the pay off amount for the homeowner and the lack of repairs needed I thought it would be a good deal for a buy and hold investor. Especially if they get 20% down on an owner finance. I don't know a whole lot about calculating cap rate and PITI yet but here is what I do know: ARV $105-$110K Repairs less than $2,500 non needed to rent out Rental Comps $1250-$1350 Asking $94K Property located in a suburb of Houston Any creative ways of getting this property sold to the right buyer? Thanks for the help.

[Tim G.]

Congrats on locking up your first deal.

Reverse engineer the process real quick. Who would want to buy this type of deal? Where would you find them?

1. Buy and holders

2. Craigslist for rent ads, call them all and ask if they want another rental.

3. Run a title report of that area and see if one name pops up multiple times, they buy in that area and would potentially like another rental in that area.

Now onto the deal itself, if its priced too high you can do two things.

1. Lower your wholesale fee (easiest)

2. Ask for a price reduction

You are essentially trying to sell a deal at darn near retail so it might very well not be a deal... BUT you are in a great situation where you can now learn the second step of wholesaling. Trying to move a deal, this is a great learning experience so do everything in your power to try and move it.

Even if it doesn't close, so long as you know in your heart you did EVERYTHING in your power to sell it then its okay and good for you for trying.

I would really try hard to get a reduction and also make sure your fee is realistic. I've been willing to close a deal for $1 just to get it done and keep my word to the seller. Crazy but the lessons learned in the process offer value more than that of the check in many cases.