All Forum Posts by: Demetria Sanchez

Hi @Sierra Potts

Welcome to wholesaling. The information I can provide is based on my personal experience from the deals I have dealt with.

My first question is , what is your exit strategy? Where you assigning the contract or double closing?

If you’re double closing doing a A to B , B to C transaction the cash buyer won’t know anything about the original seller.

If you are assigning a contract , you’re assigning your equitable interest in the property. Really, the cash buyer doesn’t have to know much about the home seller as the transaction will be done through you. However, if you are assigning the contract you it would be best to inform the home seller so they are aware that you won’t be financing the deal. A good way of doing this is to make sure in your purchase agreement you include that your company and/or a financial partner will be purchasing the property.

Also, make sure to include contingencies.

I can understand your concern for not wanting to be cut out the deal , put as long as you strategize your game plan and exit strategy you should be fine.

Hope this information helped.

 You’re much welcome :)

@Damian Ramirez

Totally agree Damian. The homeowner stated he seen houses with the similar square footage and bedrooms at $160k. I explained to my partner that the homeowner has to understand also that those comps are rehabbed. Especially the one with the new roof.

I think the homeowner is just fishing for the best offer.

@Moises R Cosme

Thank you. My exact thoughts !

Hi BP community

So here’s the situation and before I start I would like to inform you all , i don’t think it’s a great deal but I would love others opinion.

My partner came across a homeowner who wants to sell his property. He is currently renting the property out to a tenant.

The house is technically a 2 bedroom 1 bath with a unfinished basement but the homeowner is adding the unfinished basement as a bedroom making this a 3/1.

The homeowner wants to sell no less than $140k but here's my issue the ARV of the property is $167,594 based on comps ( we still haven't estimated the rehab cost).

Now the comps are renovated and one sold for $150,000.

After doing my math and subtracting 70% the MAO was about $117k. He owes $115k on the house. I was willing to offer $120k but the homeowner is fixed on $140k as his number.

How would you handle this situation? I already decided that if he doesn’t accept the offer of $120k within 5 days I’ll rescind my offer. I just really don’t see it being profitable if we were to go in at $140k. My reputation means more to me than trying to wholesale a deal with not much room for profit.

@Jakayi Parker

Inboxed you.

@Jakayi Parker

For example “ this contract is contingent upon my partners approval “.

Another example is “ this contract is contingent upon a home inspection .” ( if you don’t complete the home inspection in a certain amount of days , it gives the owner the right to go to another buyer.

What contract did you use ? Since you are assigning the contract was the buyer aware that you are doing this deal as a assignment ? If so, you not be in such hot water. If this is your case I would just speak with the buyer , be honest and see if they’re ok with giving you more time to find your buyer.

If they do, I would suggest aggressively posting to ad sites to find a buyer.

Hey @Bobby Harris

And congrats on landing your potential first deal. Not sure what kind of investor you are but as a wholesaler, this is what I do with my clients.

I believe building rapport is key. People do deals with who they can trust and who has their best interest.

Given the homeowner’s situation, you already have a conversation builder. Although it’s a unfortunate situation, I would definitely point out that your end goal is to help them. Not only make a profit. It seems the homeowner is motivated to sale due to the spouses condition.

I would definitely center the conversation based on what your exit strategy will be. If you’re intending to wholesale the home than you would need to know your maximum allowable offer but I wouldn’t mention this to the spouse on the first meeting.

First see what condition the home is in, see what the owners are wanting out of it and see if the numbers make sense. Once again, build rapport with them because from experience I know for sure rapport will make or break the deal. This is what I emphasis to my team. Rapport is key.

Once again I wish you the best. You got this!

@Jakayi Parker

I agree with the post above , it could be the price is too high.

Usually if the deal is a great deal the buyers would come to you. I recommend though to work on a solid cash buyers list. Build your cash buyers list up and use probing questions to understand your buyers criteria that way , when you do find a good deal you’ll already have a buyer in place. Not saying getting a deal first than looking for a buyer doesn’t work too but then these situations may happen.

If I were you I would go down on my price. Although this may take a portion out of your profit , it would be worth it versus giving you a bad reputation or holding you liable to purchase the property.

Another thing I would consider as well is closing on the house yourself than reselling it. This would give you enough time to find the right cash buyer and it actually helps with increasing the amount of profit you can make.

In your contract did add any contingencies? If not, I would recommend making it a practice. It helps significantly by doing so.

I hope it works out for you.

Hi David and welcome to wholesaling. 

Just as yourself I too researched a lot before diving into wholesale and I’ll do my best to answer your questions based on my experience. 

1. I would suggest starting off slow.I train my reps to first build rapport with our clients because people buy from who they trust. The key is to not only focus on profit but to create win win scenarios. I would suggest knowing what your probing questions are going to be. Personally for me , I started off getting my cash buyers purchasing criteria before looking for deals. You can do it either way but for me it just works better. It would be great to know the ARV of the property ahead of time but I don't bother until I know my homeowner is interested. This just helps me avoid the unnecessary task of running numbers just to hear a no. I run my ARV by hand as well as other free resources just to make sure my numbers are right.

2. Are you wholesaling locally first? When It comes to viewings I usually either have my partner or financial partner go to see the property. The form I customized also allows my homeowners to upload pictures of the property to avoid having to go out to the property. Usually in the beginning stage I get a visual through pictures and once we are in the under contract stage, I use my due diligence period to go out to inspect the properties. Sometimes homeowners won’t tell you the truth about the property so it’s always good to inspect when you have the house under contract. 

3.My number 1 tip would be to find like minded people. When I first started off I was doing it all on my own and you can but I found it easier to find others with the same goal as me , to help tackle task. It’s also great for networking. 

4. The best way to find leads would be to get a bird dog. I use a number of methods to help with my leads. 

I hope this information will be useful to you. Feel free to message me if you have any questions.