Matched Buyer & Seller (Help!)

[Ricardo Acevedo]

Hello, I am a newbie wholesaler that has been studying for a few months and starting to make the beginning moves now. I have an all Cash buyer looking for a 3 bedroom and 2 bathroom home in need of rehab for a max allowable offer of 30K. They filled out my wholesale buyer pre-qualification form. I found a seller with a property that has 3 bedrooms and 2 bathrooms for 22K and in need of rehab. I am meeting the seller at the property on Monday. There is a spread of 8k. I can even have the buyer purchase everything for 28 or 29k. I would like to get a contractor's estimate on the repairs to give to the buyer because of my morals and there is potential for future deals with the buyer. I also do not know if I should disclose to the seller (a company) that I am only going to put down $100-$500 in earnest money because I plan to wholesale, or if I should use a transactional lender to do a double close to avoid trouble. I very recently found a real estate lawyer that I discussed over the phone and email what I plan to do in terms of wholesaling. The buyer knows I am an investor and they filled out a "wholesale" buyer pre-qualification form, so they should understand this will be a wholesale. The seller only knows I am interested in buying the property. My lawyer advised me to make an exclusive contract with the buyer if I don't have the property under contract before I give the address and show the buyer the home to avoid the buyer from purchasing the property right under me. The buyer does not know about the seller, or vice versa. I found both the buyer and seller yesterday. Any advice would be greatly appreciated!!

P.S. This will literally be my first wholesale and I am doing everything for the first time. I am somewhat nervous, but trying my best to ignore that and get the correct information to make this transaction occur as smooth as possible.

[Stephen Chatto]

@Devan Mcclish - I need to respectfully disagree about the MAO Formula. I have debunked that rule on many occasions. ARV and Repairs are both subjective. Stick them into a formula to get a Max Allowable offer. That makes no sense. You need to know your market. You need to know your Buyers. I just recently got a deal over the competition because my offer was based on logic and knowledge not a formula. My offer was 185k My competition came in at 135k-165k. Who do you think got the deal?

Yes the deal is sold to an end use cash buyer and we are doing well on it.