Negotiating Purchase Price
I'm new to wholesaling, trying to get enough info to move forward. My questions are:
1. How to you approach a purchase price in negotiation if it is to be based upon the seller receiving a fixed amount (such as $1000) above payoff, when you don't know what they payoff is?
2. If you intend to short sell, again, how do you decide on a price to offer? In that case, what contingencies do you give the seller if it can't be met in a short sale?
3. I've wasted tons of money in educational courses that don't teach anything useful. Is the short sale primer available here worth the (electronic) paper it's written on?
Thanks!
Ted
Ted,
You are right, you wasted a bunch of money. I would recommend you research the forums here and combine the info you have and come up with some way to approach this. You seem to have some knowlege and with this site as an aid, you will be well on your way. You have to get the payoff from the lender first and then decide how to appproach the deal. You also have to know what is motivating the owner to sell...foreclosure, wanting to move near mom? Again, all your information is based on the nmbers you get from the lender. You will have to get with the current owner and get them to authorize you to get this information. Then you can think about a short sale if one is warranted. You have to prove to thelender that the property is not worth the price they are asking. Negotiation skills will help here. Not sure about the SS primer here, but I would say that if it's here, ther must be something to it. Hope this helped a bit. Good luck
Quote:
On 2004-02-11 15:16, 3sheets wrote:
I'm new to wholesaling, trying to get enough info to move forward. My questions are:
1. How to you approach a purchase price in negotiation if it is to be based upon the seller receiving a fixed amount (such as $1000) above payoff, when you don't know what they payoff is?
2. If you intend to short sell, again, how do you decide on a price to offer? In that case, what contingencies do you give the seller if it can't be met in a short sale?
3. I've wasted tons of money in educational courses that don't teach anything useful. Is the short sale primer available here worth the (electronic) paper it's written on?
Thanks!
Ted
So, if I understand correctly, you prequalify on the phone, if it seems worthwhile you get a release of information authorization, then base the contract offer on the payoff plus whatever you negotiate with the seller.
In the case of a short sell, you can't make the contract with the seller until you get commitments in writing from the lenders. Do you instead sign a letter of intent with the seller to tie up the property?
If this infromation is included in the SS primer, in a step by step fashion, I'll get it immediatly. I'm just tired of getting burned on real estate courses.
Thanks!
Ted
If you do a search on user "TheShortSalePro" he provides several primers to investors which are quite good actually.
HTH