Posted by Craig (IL) on March 18, 2006 at 22:04:36:
This is skinnier than you may think. If it is worth more, why is the seller asking $275K?
If you get a signed purchase contract, you can flip just the purchase contract. You wouldn’t have attorney’s fees even.
Do you have a buyer lined up? Experienced investors have a buyer’s list–something that you should start if you haven’t already. If you had a couple of buyers in your pocket, you could bargain with more confidence.
If you don’t have buyers in mind, why is this such a “good deal” that buyers will flock to it? What’s in it for your buyer? If you buyer is another investor, do you expect him or her to pay full price?
If you can’t bargain the price down any more, you would be fortunate to flip it and get 5K. So, of you potential prolfit were only 5K, how much risk (earnest money) is reasonable? . . .are you willing to take?
If you can do this deal and walk away with even 5K, thank yourself for putting together your first deal. Be happy. More can follow.