Cash Buyer telling me what I should make????

I have had this happen to me also. I simply told them that it is none of their business what I make, if the numbers are good for them at my price. I fully disclose to them what I am making and how they will make their money. If there is money in the deal for your buyer he will take it. Don't let the tail wag the dog! If you have a really good deal there will be other buyers. Then let this guy know how the other buyer bought, paid your fee and is quite happy.
The key to this is having a KILLER deal, if it is a marginal deal you might take the money and run.

Good luck!
Michael Mangham
MD Home Acquisitions LLC

micheal is right, aslong you keep getting killer deals, you will find buyers. never tell the buyer what you paid for it NEVER!!!!. let him find out at closing. also you might be cheating yourself selling it for 10k. list it for 15k and work down.
good luck

I recommend you sell. You are still making $2000. How quickly can you make that at your job? Also, that is the point of a wholesale, to make the money as quick as possible. Just learn from it and don't let the investor know what you are making on it next time. You can also look at it like this investor is going to be very likely to do business with you again since you are giving him a great deal.

Hello:
This is why you need to use transactional funding instead of assigning deals. When you assign a deal, you are getting an assignment fee and the buyer knows what your getting. Some buyers will try to nickle and dime a person because they feel that since they are the one with the money, that they are the boss.

They look at you as a employee earning a commission, a commission that they control or think that they can.

If you use transactional funding, you actually control the deal, because you are buying the property first, in your name through a stand alone transaction then selling it. This allows you to make more money overall. Instead of working for pennies, your selling for dollars, so to speak.

Now I am not saying to you that all cash buyers are going to be the same. There are some who actually remember starting as you are and understand that you want to make money and will pay you top dollar in assignement fees.

I would say to the cash buyer that your working with, that you need to remind them that when they started, they wanted to make money too and would never accept this being done to them, so why should you. This may wake them up. It may not, but it's a shot you can take.

I just had to respond to a couple of posts on the subject of assignment or marketing fee and how to let your buyer know what he is paying.
If I have an assignable contract I use a 2nd contract(assignment of contract)that I use to legally assign the original contract for my assignment fee.
Example of wording in assignment contract.
I am assigning this contract for the property located at 10 whatever street.
I purchased for $100,000 My existing contract with seller.
My assignment fee $10,000
Your total purchase price $110,000

NEVER wait until closing to fully disclose your deal NEVER. What do you have to hide, do you think its better to sneak around, didn't you offer a great deal that is win/win for everyone?

Next, I would NEVER use transactional funding if I have an assignable contract. Why in the world would I add the extra cost and the logistics involved? Just to hide the truth from my buyer? A lot of title companies that do double closing require full disclosure anyway. Why? They don't want the deal to go south at closing and they have there own ethics.

I WILL use transactional funding when doing a double close on an REO and most short sales. Why? That's the easiest way to get around a non assignable contract. For me anyway.

Develop your buyers list so that you can put your deal out to multiple buyers and be upfront with them from the start. This is how you will grow your business. Full disclosure on your killer deals, always handling them with good ethics!

Go make some offers!!
Michael Mangham
MD Home Acquisitions LLC

Michael thanks for the post. My assignment contract is exactly how yours is. My buyer just didn't like the fact that my partner and I were making $4k on the deal. So he wanted us to change the amount to $2k therefore dropping the total purchase price down to $8k instead of $10k.

He is getting like $30k worth of equity in this property that is rent ready and to penny pinch is just crazy. I mean he's not finding properties like we are sending him. If he was why does he continue to buy from us.

I guess I really have no issues with his needs. But it limits what I can make on these deals. He is one of our #1 buyers whom can close within 2days so I assume I must deal with it in order to keep him as a happy customer and do repeat business.

And of course $1k each for my partner and I is more than I make in 2 1/2 weeks at my job. We will see what happens tomorrow.

Thanks!

Jason B

He is not cutting his end price, right? Like you said he has 30k worth of equity. He's getting it for a bargain, you are not being greedy, and he needs to respect your deal. Would he cut his net in half? He's asking you to.

Jason, What Exactly Is Going On With The Deal? What Type Of Transaction Is This? How Much? Explain?

This is a wholesale deal.

Property is worth $40k, have it on contract for $6k, wholesaling to another investor for $10k, therefore we make a $4k profit. Everything is out in the open for everyone to see.

Cash buyer just doesn't like the fact that we are making $4k on the deal and wants us to only get $2k. Therefore he is actually getting the property for $8k instead of $10k

So my partner and I lose out on $2k and he gains it. He is nickeling and diming the whole deal. Either way it doesn't matter because he is one of my VIP buyers that closes quickly.

Hope this makes sense for those that are reading this.

Thanks for all the help.

Jason B.