First Deal: How to Proceed

[Michael S.]

This is my first wholesaling deal, lead came from a probate letter.

2 properties, one in Ohio and one in Missouri.

Estimated value of OH property: $35,000
Estimated value of MO property: $110,000

Owes $42,000 on OH property, $81,000 on MO property. Asking for $45,000 and $100,000.

I know I can't offer what she wants but I know she is willing to deal. Would you leave the OH property alone and deal only with the MO property? I have a few interested buyers at around 100k. Signs were put up in OHIO, I'm not from MO. Any advice appreciated! Thanks.

[Jerry Puckett]

Ah, now you see, you didn't mention that you were a Realtor, which obviously opens up other options.

If you can find cash buyers @90% of value, you have it made my friend!! Me, I would get laughed out of the State if I were to bring a "deal" like that to any of my buyers. After holding and closing costs alone, where is the profit for an Investor?

And if you intend to reach a retail buyer, doesn't your license say that you need to get the best price possible for your seller? If she can get 98k retail, aren't you supposed to disclose that to her? Wont you be making a commission as well?

Just curious. Truly, I do not understand how such things go. I just know that 90% of value makes no sense to an investor, and that it's hard to find retail buyers with that kind of cash.