Posted by JT-IN on October 03, 2003 at 22:10:13:
With some upside potential, even after the cost of repairs completed… A deal that you would jump in an instant if you had the capital…
What you should do is get the deal locked up and under contract, have the analysis complete the approximate costs roughed out for repairs, and show… (No don’t show, but DEMONSTRATE how the investor is going to make money, and lost of it). They will be impressed and buy the deal on the spot…
Here is what you ask yourself… objectively. If I were the investor, why would I not buy this deal…? If you are honest with yourself, and spot the reasons, and then show the investor ho whe overcomes those problems… and it is usually with a lower price… You simply present the investor a NO-Brainer Deal, and you will get paid.
One Caveat: This assumes you are dealing with credible investors, and are not in any jeopardy of having someone steal out from under you… Of course, credible investors don’t do so, but protect yourself contracturally, as all investors are not credible; unfortunately.
Just the way that I view things…
JT-IN
PS: Now make certain you are not committing the cardinal sin of most whanne-be wholesalers… you suggest a deal to the investor, that after they invest their rehab money, it is worth what they have invested… Also, don’t expect to make the same profit as the rehabber… These two sins eliminate me from taking most wholesalers serious…