Wholesalers, Stand by your offer: Don't enter into a bad due to seller wanting more money

[Timothy Rogers]

Hello,

I loss out to a wholesale deal on Monday. I work probate leads. I was called to come out to look and make an offer on a property. The executor of the probate property in North Dallas was trying to get the best offer for the property. My contractor and I met with the executor and I presented an offer Monday evening. I gave a very fair offer of $25K on a property that need $30K in rehab and value at $95K. My end buyer all in cost would have been little over $61K.

The executor told me they had received a much better offer than what I had given. I was not going to offer $30K or $35K just to please the seller and get stuck in a bad deal.

As a wholesaler we must know our numbers in order to sell the property quickly. It would have been a $5K assignment fee for me. If I would have offer $30K then I would have cheated myself out of money. Wholesalers stand by your offer no matter what. Be ready to walk.

[Michael Lauther]

Wholesalers perform a valuable function in the market place. Especially for properties that sell of 30k and need at least as much in rehab. Real estate agents are apparently not flocking to market these properties and retail buyers are scarce and don't have the cash to purchase. It is predominantly cash investors with resources that can make these properties marketable and
profitable.

This is why to be in business, a wholesaler without sufficient resources to buy property must understand the market and not overpay. To do so would dilute the value to the investors that are the lifeblood of the wholesaler's business.