First Wholesale Deal- So Close Yet so far

[Eshe Harvey]

Currently working on a wholesale deal where the seller is asking $289,000. She recently reduced her price by $10,000, but comps in the area suggest she is still about $50,000 overpriced compared to similar homes. Buyer is willing to pay $260,000. Ideally, I would have liked to negotiate the seller down closer to $250,000 to secure higher assignment fee. However, based on the seller's pricing expectations it may make more sense to adjust the assignment fee just to close the deal, secure the commission, and move on to next deal. 

I have been like a madman all day, working back and forth through emails between seller and buyer trying to lock it up. I may need to bring up the fact that the property has been on the market almost 60 days, and she has already reduced the price by 10k. That says a lot about the true demand. If she is serious about selling, it might be wise to come to an agreement now -before more days on market weaker her position further.

For seasoned wholesalers or anyone who has experience - is it common to adjust your assignment fee slightly to secure a close, or is it better to hold firm even if it means risking the deal? I personally may just lock it in and move on. A win is a win. 

Appreciate any insight (feel free to inbox me directly as well if you would like to share any insight) - will figure this out anyway.  

[Stephen Morales]

Quote from @Joe S.:

Quote from @Stephen Morales:

Quote from @Joe S.:

Quote from @Stephen Morales:

Quote from @Eshe Harvey:

Quote from @Stephen Morales:

Quote from @Eshe Harvey:

Currently working on a wholesale deal where the seller is asking $289,000. She recently reduced her price by $10,000, but comps in the area suggest she is still about $50,000 overpriced compared to similar homes. Buyer is willing to pay $260,000. Ideally, I would have liked to negotiate the seller down closer to $250,000 to secure higher assignment fee. However, based on the seller's pricing expectations it may make more sense to adjust the assignment fee just to close the deal, secure the commission, and move on to next deal. 

I have been like a madman all day, working back and forth through emails between seller and buyer trying to lock it up. I may need to bring up the fact that the property has been on the market almost 60 days, and she has already reduced the price by 10k. That says a lot about the true demand. If she is serious about selling, it might be wise to come to an agreement now -before more days on market weaker her position further.

For seasoned wholesalers or anyone who has experience - is it common to adjust your assignment fee slightly to secure a close, or is it better to hold firm even if it means risking the deal? I personally may just lock it in and move on. A win is a win. 

Appreciate any insight (feel free to inbox me directly as well if you would like to share any insight) - will figure this out anyway.  

 This business is all about speed. Spreading yourself and bandwidth on deals that you're going back and forth on is hardly ever worth the extra effort. If you can secure a deal and you end up losing 10-20% on your original assignment, who cares. 

Take those funds and allocate capital on fueling your business further and keeping that pipeline operating like a well oiled machine. 

Because this is your first wholesale deal, I can see why you're really wanting to get as much as possible. Listen, take the money and reinvest. Time IS MONEY. You are wasting time if this deal falls through or takes an extra week to negotiate to make an extra grand or two. 

Thank you! I agree it is better to close the deal and keep my momentum going. Appreciate your advice! 

Anytime @Eshe Harvey

I'm super stoked that you're about to get your first deal! Congrats on the success. Keep working hard!

 Steven, did you actually read her post and the numbers that she put in her post? 

Yes, and my message is the same.

Seller listed at $289k 

Buyer will pay $260k

$29k difference 

She wants to get it at $250k to make $10k assignment. My advice answered her question which was essentially if you can negotiate it and you can get seller to a price where you can assign it at and have the buyer meet half way, take the money. Don’t fixate on this number you want to make on the deal IF there is money to be made if you lower you assignment fee.  
 

Make sense?

 I didn’t see anything about her getting it for 250k, but if she can get it for 250 and sell it for 260 that sounds ✅.. 

I’ll let her post and let you cheer and I am done here. 😂

 Lol you are correct, I was just answering a hypothetical and being enthusiastic about potential success.