Virginia Beach, VA · Member since 2017 · 18 posts · 2 votes
I know a lot of wholesaling deals are mostly in cash, and I have been hearing a lot of "paying 70% of the houses value" or some other percentage. So lets say I have a potential seller and he is asking for 100,000 dollars for his property, and is willing to be paid in cash.I would bring up to the seller that most cash deals are going to be 70%(or whatever percentage) of the houses value, correct?Therefore, the final cost of the house would be 70,000 dollars, right? (Not including my assignment fee with the buyer.)
Investor · Miami, FL · Member since 2015 · 379 posts · 330 votes
9y
Not really sure what you're asking hear but just going to clear things up as you seemed confused.
The 70% has nothing to do with what the seller is asking. The seller could see their Zestimate is 180k but if the comps show the property is worth 100k then you know investors will want to pay 70k for the property.
If investors want to pay 70k you have to get it at price even lower to make your assignment fee. So you go and offer 65k to the seller (one third of what they are asking).
Does this make more sense now?