My first offer!

[Chris Wyatt]

Wednesday (10/7) I'm going to make my first offer on property I found. An elderly man lives there and has been there 51 years. He's the original owner. I went through the house to estimate repairs. I really hope I'm estimating right. It's a 1300 sqft 3/2/2 house. Needs carpet, new windows, paint, and totally gutted kitchen and bathrooms plus a few other cosmetic things. I came up with $20K in repairs. The ARV is about $100K.

So I figure my offer should be $45,000. Does this sound ok? Should I get an attorney to help sign the contract? How long should I give myself to find an investment buyer? How does an investor see the house without bothering this owner too much as he still lives in it?

I'm trying to get past my fears, but I guess all first time investors get it. I'll never learn if I don't actually do it though.

Thanks!

[Christopher Um]

Try going through your neighborhood and start looking for rent sign, on going rehabs.

Call them and see if they are looking to buy more properties in this area, and ask their criteria(price, bed/bath mix, cash buyer or financing, wholesaler rehabber or landlord, etc..) get their contact information. Once you find that out, present your offers to them.

Also just because he doesn't accept your offer that day won't mean he won't accept it another day. I offered 95,000 on a property. He wanted 150,000. He didn't accept. I waited 3 weeks sent him the same offer, he dropped his counter down to 110. I am still working on this deal as we speak, I will probably contact him again 2 weeks later and ask him if he still sold the property, and tell him my offer is still good.

But in the meantime, Build up your buyers list, that is the key to being a successful wholesaler. It'll help you understand what type of deals people are looking for in that area. The type of financing(cash, convention, pm, hm, etc..), the price, the exit strategy. Because you already know what they want, and have them in mind. It is so much easier mentally to make offers, because you don't have to worry about finding a buyer. And you have a much better idea of what to offer, meaning you'll have a ton more confidence.