What info to give buyer? Need help urgently...

Im gonna throw my 2 cents in here. First of all, he does not need to know what price you are offering the owner and DO NOT give him the address until after you have it tied up. There are wheeler dealer jerks out there, and if he is one of them, forget him.

If your deal is a good one there will be others knocking at your door. So be sure to court your other buyers and put it on CL list w/o giving the location.

Btw, if you could post some of the numbers, Im sure some of the "old hats" (ladies excluded) will be on a little later and it will help them evaluate your deal and advise you exactly what to do.

Good luck with it M, let me know how it goes.

"We aint no Santa Clause". They need us as much as we need them.

Marion I misread and thought you were waiting to close with the owner, but if you have closed, your prospective buyer will have to see the property before they buy it. No way from preventing them from waiting you out, but if that is all they have to do, I wouldnt worry about them. IT WILL SELL, and I gurantee they will not wait on your plant to mature in order to steal your fruit. MARKET, MARKET, MARKET!!!

I will jump right on the CL. At first, I thought I was missing something and it makes you kinda second guess yourself. I have asked this buyer for his criteria, but he has yet to send it to me, so that should be a flag that something is not quite right. Property city assess $206K, BPO: 190-220K, est. rehab 16K(w/o the misc 25% added it w/b 12k), offered at 175k. Rental range $900-1200, I also have potential L/O if needed. The property is move in ready, the repaint is only necessary if the owner does not like color schemes in the home; which would decrease the rehab under 9k. The profit 25-45K.

Tell him that you'd like to meet to see his paperwork that he actually has the funds to view the property. Truthfully he might be in the same position as you.

If you at least look prepared and stand firm, less chance of him trying to get over on you. If he won't budge, then simply say "no problem there are other buyers take care" and hang up. He might call back. He might not. But throughout any convo you have to be in control.

Good luck to you

Marion, sometimes BPO's jump all over the place and are done by a Broker via long distance and pics. Also, tax appraisals should never be taken too seriously. The best thing you can do to be safe is get current comps from your agent, preferrable within 60 days old.

Go getem M., and best of luck!

What I can't understand is what smart investor/buyer wouldn't want to know the location of the property when you're trying to sell it to him/her? And then there's a chance that he or she talks to the owner.

advertising property until you have it locked up under contract. Once you have it under contract then you can meet the end buyer at the property and show it to them. However, I wouldn't waste my time showing property until the end buyer shows you proof of funds. You should also be asking for a $2500 non-refundable deposit to make sure the end buyer is going to close on the property. This way if the buyer walks, at least you have your earnest money back and a little extra for your time.

I have some investor/buyers that dont care where-as long as its a deal. They just look at the numbers/profit. Most of these I've delt with for years, so they know my numbers are real.

Some are very picky. ONLY wants storage bldg,brick & hardwood floors,multi family,certain areas,etc...

Mike

Keep marketing for more buyers..

is correct on this one. It is fine for your end buyer to ask what you are paying; but it doesn't mean you have to tell him. We all try to gather as much info as we can. But when you have control of a property for an assignment, ask YOUR end buyer to toe the line and prove to you that he can buy it. POF and EMD.

That's what a lot of my buyers tell me when I have numbers similar to yours. Maybe I'm missing something - but here's what I figure.
You're selling it for 175, let's assume only 9 for rehab and ARV of 200. That leaves 16K (200-175-9). If it is resold by putting it on the market with a realtor, considering all costs (commission, closing, etc) that costs 10% or 20K in this example, meaning your buyer is losing 4K.
Most wholesale buyers want to purchase at 60-70% of ARV less repairs. So 70% of 200 minus 9 in repairs is 131 (that is called your Maximum Allowable Offer or MAO). Then you have to figure what you want to make, at least 5, so you would have to lock up this property at 126 to wholesale it.
Gena

When I mentioned waiting me out, I have an out clause so after a period of time the contract is void and that was what I was referring too.

So if the buyer is interested and wants to see the property, I should first have him show POF and how soon do you request the EMD?

The Comps range is around the same range believe or not and they encompass the last 6 months. I was kind of surprised because I thought either the comps would be much higher. By using the last 6 months and not 60 days that could make my numbers too high. I will go back and compare the 6 months to 60 days, but from this point on I will use the last 60 days. Originally, I was going to use 12 months.

Thanks and if you think of anything else please let me know.

Elix,Steve, Mike and Bill are all correct. Let me add something to the mix.

Present your deal as a professional. You have it under contract and have multiple buyers. You are just letting this buyer have a look also, you don't care if he takes it or not, you have people that will take it. Meet him at the property and walk him through it. This prevents him from thinking he can wait you out! All in your professional presentation.

By the way, if you assign a contract the end buyer WILL know what you paid and how much money you are making at closing. Fully disclose all your information up front, don't wait till closing, this can blow a deal at the last moment. If your deal is strong enough a real investor will not care what you make. Its all about a professional presentation. YOU CONTROL THE DEAL, NOT THE BUYER!! If he does not like it, on to the next buyer! That is the image the buyer needs when dealing with you. Professional presentation, this is my price, this is what it will take to fix it up, this is the NET profit you should expect to make based on my numbers, this is what I am making. Full disclosure, up front, take it or leave it. Why would you be ashamed of or scared to tell your buyer what you are making?
Build your buyers list by advertising this property EVERYWHERE!
This is all based on you having a signed contract with the seller. Do you?

Good Luck, remember you are in control!
Michael Mangham
MD Home Acquisitions LLC

In this kind of market you DO NOT use comps from 6 months ago unless you can't find any comps for the last 90 days. This market is way to shakey to be using 6 months worth of comps. You should only be looking at the last 90 days.

What Kimmy says about comps is SO true these days. Going back 6 months will show trends, downward trends mostly! In this market you need to know what your property will sell for today, not 6 months ago! Also, I hear it all the time, I ran comps .5 of a mile from the property! Price ranges can change 10 times in .5 of a mile. Get comps that are actual comps to the property you are looking at. What if a comp. has the same Sq ft, bedrooms, baths, etc sold for X amount, however it was a total new remodel, is this a comp to your property that needs work 2 doors away? What happens if there are 3 foreclosures or short sales on your street?

Michael Mangham
MD Home Acquisitions LLC

When you do Option Contracts with sellers you ALWAYS record them so that you put the world on notice that you have interest in the property. This clouds title. That means the seller can't sell behind your back and an investor can't snatch the deal up behind your back. If you don't exercise the Option then you give the owner a release copy and file the original at the recorder's office to remove the cloud on title. Hope this helps.

Yes, I do have contract and I guess I am a little shakey because when this deal is finished(thinking positive!!) I will have closed my first urgent sale because the sellers really need to sale it as quickly as possible. I could just be over thinking and by trying to prevent any potential issues giving myself a headache for no reason. But getting everyone's input has helped me tremendously and the knowledge is invaluable. I am going to do my best and market everywhere and not just my buyers' list. I understand my mistake: send your info to your buyers'list, but market everywhere at the same time. DUHA!!! I appreciate you guys patients. I will also add the Memo Technique to my game plan.

I will start using the comps for 60-90days. Would up to 5-10 miles be good for the comps? But would expand if I can not find any close comps for a property or just use the closest in that specific area?

In a densely populated area you stay with 1/4 mi, if nothing then 1/2 mile, if nothing 3/4, mile, etc. If rural, you will have to expand further, but hopefully not more than a mile.
Did you review the numbers as I suggested?