All Forum Posts by: Chris Colvard

Right on Will,

The deal must still be a wholesale deal, even if there are 2 people getting fees.

The agent probably is getting paid on the flip listing. If he's acting as a buyers agent his agreement covers that with the buyer. No need to offer anything out of the wholesale fee to the agent.

You'll know when you submit the first deal. For me, I don't like surprises.

The realtor is probably working as a buyers agent for his buyers. To make sure just ask him a straight forward question, do your buyers pay you your fee or are you expecting part of the wholesale fee?

Get it all out in the open and ask how he has done other deals with wholesalers.

Always lock up your deals before showing them. If he doesn't follow through on a deal or tries to go around you, don't work with him.

Closing costs are what is paid to escrow, title policy if not paid by seller, insurance, transfer fees etc..

In general commissions are paid by the seller.

Holding costs are loan costs, points, interest, etc...

That or just do some kind of split with the wholesaler.

It's done all the time.

Good job! You can always go back to that seller and see if they changed there mind.

Who is the author of Power Negotiating?

I'm 100% for it!

Comps (recent solds) are your fair market value. ARV is the fair market value of a rehab after it is completed. They are equal ARV = FMV

When flipping you want to have it priced for a fast sale. So, you will at only use the comps that have sold within 60 days. This is days on market or market time.

Wholesale is ARV X 70%

ARV = Fair Market Value
Less Cost
Less Rehab Cost
Less Closing Cost
Less Holding Cost

What is left over is profit.

Seems from a sf stand point that you are still looking at ARV $50K.

Don't get to excited about this one.

Learn something on how to work a realtor in a situation like this. Tell her that this property needs so much work; how on earth did she come up with this value?

I'll offer $5K subject to my contractors having 10 days to tell me what's going on with this property. If I don't like the numbers, no deal, period, refund my earnest money.

Because this deal is so lame, I'm only going to put up $100 earnest money for the look. If you want me to close, show me the comps to make worth my time? I simply don't see it!

Also, what are stats on property next door?

What are the stats on subject property?

beds, baths & sf?