Contract Negotiations

[Brian Feltz]

I just received a counter offer back for a duplex I plan to wholesale. The seller wants me to change responsibility of title insurance from "seller" to "buyer" (ok, sure). Include terms of financing I am seeking (I plan on wholesaling this to a yet determined buyer so I am not exactly sure) and asked me to come up another $10k. Asking was $55k, I offered $35k after doing a walk through and some due diligence on the property. The ARV is approx. $60k. The duplex is fully rented, bringing in a total rent of $1350/mo. Could use a deep cleaning and some minor repairs (new front door, fix soffit, paint, carpeting & damp in one corner of basement).
So, how should I counter? I personaly do not plan on purchasing this property, so what are my acceptable financing terms?
I will probably come up to $40k, but thats my max. I really wanted to present this property to my buyers as a $50k all in deal. But, the rents are there. Both tenants have been there for 2 years each.
Also, when wholesaling, what are you supposed to put for where title closing will take place? What if my buyer has their own company they use versus the one I want to use? Does it even matter??

Any suggestions, advise, ideas, comments are greatly appreciated!

[Brian Feltz]

Dale Black J Scott I just wanted to give you guys an update to my above situation. I took your advice and called up the seller and clarified my intentions on wholesaling the property and never taking posession myself. He said he heard horror stories of wholesalers tying up properties without even having any buyers in mind. I informed him that I have several specific buyers in mind whos criteria his property matches, BUT that it was not a gaurantee that they would buy... just stating I DO have buyers in mind. So, we are both on the same page, working together on this. I told him I was going to reject his counter without a counter and start over! I am taking out the financing clause and replacing it with a ""Finding End Buyer" clause. We agreed upon $40k, which is what he bought it for 3 years ago.
Im not 100% on the agreed price, BUT I feel much more confident knowing that everything is out in the open about my intentions! I really appreciate the advise!

Now, when marketing this property to my buyers... would you market it as assingment would be $XX amount for property and $XX amount for assignment fee OR $XX cash purchase price? Or pick one or the other option? Like Dale said above... I would really like to stay out of the clsoing if possible.

Again, thank you guys for your comments. I truly appreciate the fact you take the time to answer newbie questions and share your expertise!