All Forum Posts by: John Walston

Just submitted my first offer in a property listed for $100k. 1,300sqft, 3 beds 1 bath. Roof and slab condition unknown. I found the ARV to be around $180k+ for my area, so it made sense to put in an offer at $73,000. We negotiated a 2% earnest fee and 1% option with 30 days.

Is this a strong offer, and do I have enough room to raise the price for my wholesaling fee later? if they make a counter offer, the highest I will go is $75k.

Finally, what should I be looking to sell this house for to my cash buyer later? I am hoping to set my wholesale fee at $10-20k. Is this feasible?

0 Votes

I have laid out the possible sequence of events that I will follow in order to obtain the purchase and sale agreement:

"Is this the correct sequence to follow?

- Call the owner, check up on the property and ask questions

- Followup a few days later with the offer

- If offer accepted, pass along the purchase and sale agreement"

Obviously after you make a cash offer the seller will be expecting cash, but you offer them a contract to purchase and sell their home instead. Doesn't this take some explaining? Won't an FSBO seller be confused as to why he's not getting his cash upfront?

A helpful answer may read, 'after getting the offer accepted, you simply explain to the owner that you need him to sign a purchase and sale agreement because XYZ...

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Houston, Texas

Quote from @John T.:

@John Walston A real estate wholesaler is a person or company that buys properties at a discounted price and then resells them to other investors, usually at a higher price. The wholesaler acts as a middleman between the seller and the end buyer, and makes a profit by marking up the price of the property.

Real estate wholesaling is a fast-paced and high-risk business, as the wholesaler must be able to find properties at a steep discount and then sell them quickly to another investor before the market changes. It can be a lucrative way to make money in the real estate industry, but it requires a strong understanding of the market, good negotiation skills, and the ability to move quickly on opportunities.

See also Wholesaling in Texas Real Estate regarding Texas laws and regulations on wholesalers.

As mentioned above, I am totally familiar with the definition of wholesaling. I am asking about the process of putting a home under contract.

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Houston, Texas

Quote from @Bryant Brislin:

I'm really confused by "Finally, what is the most transparent way to get the owner to agree to the purchase and sale without causing confusion?". What does that mean? Are you actually an investor who would be buying the property yourself? Or are you trying to wholesale? Feel free to DM me, if you'd like.

Correct me if I am wrong, as a wholesaler you need to get the owner to agree to let you sell their home through the purchase and and sale agreement by signing the wholesale contracts?

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Houston, Texas

Quote from @Rob Gillespie:

Happy New Year!

Dont over complicate it. Your goal is to put a contract on the property and make sure it is for less than it is worth.

I would like to see the deal and the numbers in specifics so I could give you more guidance. This is very vague.

The RIGHT questions are important. it is more about the situation than it is the property.

give some more details and lets see if we can get ya a roadmap to making an offer that makes sense.

Hey Rob,

This place has been on the market for almost half a year. One bed One Bath, around $70k. Needs cosmetic repairs but overall appears to have a strong foundation.

I do understand that the goal is to get the property under contract, but I am wanting to know more about getting the owner to agree to that. Is it as simple as sending it to them and explaining that a 'partner' is making the purchase?

0 Votes

Houston, Texas

Happy New Year folks. I have a potential property that I would like to put under contract (first deal), and it's an FSBO home. I'm totally new to this and don't want to build rapport with the owner, without miscommunications during contractual process.

Is this the correct sequence to follow?

- Call the owner, check up on the property and ask questions

- Followup a few days later with the offer

- If offer accepted, pass along the purchase and sale agreement

Finally, what is the most transparent way to get the owner to agree to the purchase and sale without causing confusion?

1 Vote

Houston, Texas

All Forum Posts by: John Walston

John Walston has started 2 posts and replied 6 times.

Post: First offer submitted

Post: How to get FSBO under contract?

Post: How to get FSBO under contract?

Post: How to get FSBO under contract?

Post: How to get FSBO under contract?

Post: How to get FSBO under contract?