I was just thinking about a deal that I recently put together this past Friday and thought it may be good advice for you when wholesaling houses. A seller called on a bandit sign that one of my guys put out and my new acquisitions manager answered the phone and sent the details to me through Google docs…
Quick tip: If you are using Virtual Assistants to answer your calls then you gotta use Google docs or something similar to stay up to date on your phone records and call details. It’s works like a charm.
Anyway, after Kathy input the information in Google docs I received the information and called the seller back in order to set up an appointment to see the house. On the Google doc Kathy mentioned the property was a $60,000 property if it was in perfect condition, so I knew what type of area this property was in. She also mentioned that the property needed a lot of work.
So I ended up contacting the seller and asking him a few more questions. Turns out, he inherited the property after his father died and he just wanted to dump it. I asked him what his best price was and he told me $12,000. I immediately knew I had a deal.
Being a seasoned investor I wanted to see how far down he was willing to go on price and so I asked him if the $12,000 was the best he could do on price, and he said no. He told me that if I offered him $8000 he would take the deal. So I set up the appointment.
While at the property I noticed that it needed more work than I had anticipated so I offered him $3000 for the house and he took it. I literally paid $3000 for a $60,000 house. Not bad. Granted, it needs $20,000 in work, but it is still a great deal.
Quick note: I used the same strategies to pick up 3 free properties this year so far as well.
The moral of the story is, the asking price doesn’t matter. If the seller is truly motivated, whether it is a bank or just a plain ol’ motivated seller they will take your offer if they really want to sell. You determine the price and if the offer is good for them they will take your offer.
In the example above the seller dropped the price by $9000 without blinking an eye. This was because he was motivated. I honestly think he would have taken less. But I didn’t want to push it.
Remember, when you are looking for deals on the MLS or through marketing, keep in mind that the price doesn’t matter. If you make an offer and the seller doesn’t accept it.. Fine! Just move on. If the seller does accept it then that’s great for you.
Leave a comment below and let me know what you’re thinking.
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