@Jonathan Greene
OP states that
1. For the last 6 months he’s watch every YouTube video and read every article on wholesaling
2. He has no ideal what to offer
3. He wants a $200,000 fee in his first post, and a $120,000 fee in his second post
4. The rehab budget is $600,000 in his first post and $500,000 in his second post
5. He has heard of the “70% rule” but has no idea how to calculate it
Obviously someone very new to the real estate field in general, and to flipping contracts in particular.
In something that we’ve seen a million times before, an inexperienced person asks advice in his first post, and when he doesn’t like the responses he grows argumentative, hostile, attacking and begins embellishing. We who have been “in the trenches” for years know that one or more of the following is “wrong” with the deal
1. The rehab is FAR in excess of $500,000 or $600,000.
2. The property has structural, foundation, or flood damage that makes it a tear down.
3. The property has an incurable defect, such as is in a flood way, which renders the property worth substantially less than it may appear to the inexperienced
4. The property is in a “war zone” and hence worth 25% of what it would be worth in a decent location
5. The comps used to reach a FMV are not comparable.
6. The property is a “white elephant” with a layout so undesirable that nobody is interested
7. The building is in such bad shape that it’s “highest and best” use would be to tear down and rebuild.
8. The property is very large tract home and the comps being used are large high end custom homes.
9. The property is being marketed using the strategy of asking a low initial bid price expecting this will draw many bidders and result in a bidding war with the final price being far in excess of the initial “bid” floor price
10. There is a title issue that will be hard, time consuming and costly to resolve
11. The person listing the property doesn’t have full ownership rights, and needs the signature of a co owner or spouse to sell, who knows nothing about the listing and wouldn’t sell it at anywhere near the list price
It then again what would I know? I haven’t watched every YouTube video or read every book on wholesaling.
