I have a motivated seller who is listed on the MLS but very unhappy with his realtor. He has been listed for four months. He is listed at 140k, but the current value is probably closer to 130k. It is in a rental neighborhood, and in pretty good shape. With 5k in updates could ARV around 145k.
He called off of a direct mailing and let me know his property is 100% paid for, it is vacant, and he just wants to sell it and would be willing to give deep discount off of asking price if there was an all cash fast closing. Exact amount was not discussed. My bad. I did find out he had no interest in carrying and type of owner financing, though.
I know this does not fit the typical wholesale model, but I feel like a buy and hold guy with cash might be ok buying at 110,000 to 120,000, and if I can create a decent spread for myself than might work for everyone. Thoughts on this?
Second, I would like to buy outside of the realtor to avoid commissions since the margins are thin and to get purchase price as low as possible. What kind of contract can I buy with to circumvent the realtor without him cancelling the listing (in case I cannot flip it)? I am not familiar with the various types of option contracts.
I just would like to know if I can make this work, since he is super motivated, but somewhat awareof the hhouse value.
