Cash Buyer asks what you got it for

[Sean Dezoysa]

How do you guys respond when a potential cash buyer asks what you picked up a deal for? He will see it eventually on the HUD1 (except when using a double close) but asking early in the process smells of negotiating tactic to me.

[Joe Villeneuve]

So what's the problem?  Of course it's a negotiating tactic.  So what.  Are you afraid that if you tell the buyer what you got it for they will somehow have leverage on you?  If that is the case, then you aren't very strong (or feel guilty) about your sale price and profit.  

Your Asking Price is what it is based on the value of the property...not what you got it for.  If your buyer questions your profit, that's not up to them to decide.  The issue should be "is the AP correctly set".  If it is, then stick to it.  If the buyer focuses on your profit, tell them they should have bought it before you did at the price you got it for...and, then did all the rehab themselves.

Bottom line is this.  Don't ever try to rationalize your profit...only the sale price.  The sale price is the ONLY thing that matters.