Wholesale Deal Today

[Robert Burns]

I've been working on a wholesale deal for about 3 months. Initially the seller wanted too much for the house. I just talked with the seller and she said she needs to "unload" the house and will take a loss. She owes about $50k and the ARV is approximately $90K. Repairs are $10k-$15K. I want a $5K assignment fee. I already have a buyer lined up who is looking for a house similar to this and will be financing the sale with a mortgage.

This is my 1st solo deal, so what are the recommendations for my offer amount and what other things should I be sure do?

[Jon Holdman]

O/O is owner occupant. Is your buyer going to get a conventional loan and live in the place? If so, they may have to pay your fee out of their own pocket. Even if your price with the fee is fair and supported by comps, conventional lenders will sometimes look at the price you paid and use that as the maximum value.