Common issues when dealing with sellers

[Eugene Naroditskiy]

I don't have much fear of the actual negotiating but I'm a bit apprehensive about how much to reveal to my seller, as far as the intentions of what I'm doing. I absolutely want to be ethical in what I'm doing but I can't imagine many sellers being happy about me making $5,000 off of their house? Do I tell them exactly what I'm trying to accomplish, do I sugar-coat it? Any suggestions on this would be appreciated. Thanks!

[Jaremy Moritz]

As long as you're clear and transparent with the seller about your intentions, you should have nothing to worry about. If you are able to make more than $10K on a wholesale deal, or any amount the might be considered extreme, you might want to double close it. It all depends on how comfortable you think the seller, and buyer for that matter, will be in knowing how much you're making on the deal. Keep in mind that when assigning a contract, your fee will be right on the HUD for all parties to see.

The last thing you want to have happen is for the seller to think you are buying the house and then find out at closing that you assigned the contract for a crapload of money. I've had sellers that I felt wouldn't care about what I made flip out and try to back out completely when they saw my profit on the HUD. My rule of thumb is anything $10K - $15K or higher, depending on the situation, gets structured as a double closing, not an assignment. I'd rather have to spend a grand or two doing the double closing than lose the whole deal because someone got their feelings hurt about my profit.