Posted by life-is-great on September 21, 2003 at 12:16:56:
"Look them dead in the eye when you say it. There is nothing to be ashamed of. "
Good idea! Thanks.
Buyer ask for my purchase price - Posted by life-is-great
Posted by life-is-great on September 20, 2003 at 21:43:16:
Hi,
I posted this on Financing forum, it was title"buyer asks for my purchase price" and would also like to have pointers from anybody on legal forum. I think they are common situations, but none of the course/book I read cover this.
Without getting into too much details. I ran into two situations in my recent potential all cash offer flipping deal–seller asks for evidence of my pre-approved financing before he is willing to sign contract, he wants me to show I am serious because the previous buyer tied up his property for 30 days. Should I walk away from this deal? FMv $250K, neogiated price $200K. Also, the potential buyer asked how much was my purchase price, how do you handle these?
Re: Buyer ask for my purchase price - Posted by Tony-VA/NC
Posted by Tony-VA/NC on September 21, 2003 at 10:12:28:
I am not an attorney but your question is not directed at a legal opinion. It is more a matter of negotiation.
You are making all cash offers. Quite often you will be dealing with banks as well as sellers who accept a lower cash offer but they require proof that you have access to the cash. This is routine in my business and in my opinion, such a letter lends strength to you and your offer.
If you walk away from such a request, they were right in asking as it appears that you cannot pay all cash (regardless if this is true or not).
As for you Buyer asking you about your purchase price. Chances are that such a buyer was not your target to begin with. Either they are an investor who is trying to cut you out of you profit (someone you don’t need to be working with), or they are a tire kicker. Either way just let them know that you are in this as a business. You do make a profit on homes in order to stay in business. You don’t discuss your purchase price. Look them dead in the eye when you say it. There is nothing to be ashamed of.
Chances are the tire kicker will fall through any way and if this is an investor, he can do some research and find out how much you paid if that is what his/her concern is.
Honestly, most investors that I know who buy flips from other investors simply look at the property and the price or terms they are receiving. If they can make money on it, then they go forward. They understand that you are making money and so long as you provide them the types of properties they like at a price or terms that make them money, you have a pipeline. They guy that tries to cut your throat on each deal is not a candidate for future business.
Tony