What did I do wrong.....

[Mike Landry]

I have an owner that called me from my letters I sent out last fall.  I checked out their property a couple of weeks ago and I determined there wasn't enough room to wholesale and I didn't personally want it because the area. Here where the numbers.

They where firm at $94,000

My ARV $115,000 to $125,000

Rent $1200

Rehab needed paint carpet some fascia and drywall repairs, refinish bath tubs. I'd say about 5 to 7k for rent ready. 

I would need to be closer to 80,000 and they where firm so I said I would follow up in a week or two. They said if I could find a buyer at 94 they are ok if I have a fee on top. I didn't put it under contract because of the numbers and they didn't want to sign a contract unless I would buy it.

A week later there is a fsbo on postlets/Zillow for the house. But it's listed by another local real estate investor / wholesaler (who is actually on this forum and a realtor). He has it listed at $125,000 and it's a little more fixed up. The owners said they where going to do a few things themselves...paint and clean. 

I don't think it will sell for 125 but he might get 110,000 in this market from an end user. 

Did I drop the ball not getting this property under contract?  Good for him. I'm trying to think what I would do next time with these slim margins. 

Thoughts?

[Devan Mcclish]

@Mike Landry sometimes it's best to let other people speculate. You were right. That number was too high. The only thing you could've maybe done is owner financed deal or a wrapped mortgage. But those are the people who end up with their pants down when the market corrects