Posted by Bob-Tx on February 28, 1999 at 21:56:09:
Carey
The title company will deal with the earnest money…you will get it back.
I generally set my asking price on the house. As an investor who buys flips as well as selling them I can tell you I do not choose to play he said/she said when it comes to evaluating flips. Decide what you need on the deal and set your asking price. Your buyer may take it at that price or offer whatever he feels is right.
I have a couple of guys that I have sold lots to and trust to come into the deal even before I make an offer to the seller and tell me what they will pay. Then I deduct whatever I want to make on the deal and write up the offer.
Key thing is to not get greedy. Remember what your position is in the overall picture…you found it and negotiated a buy but you have no risk. DON’T GET GREEDY!! I have had deals sit and get stale because I was asking too much…really tough to go back to your investors with hat in hand and lower the price.
JMHO
Bob
Posted by Carey_PA on February 28, 1999 at 13:45:46:
When doing a flip, and you put your earnest money down ($100), how does that work into the deal, with the seller and the investor?
When you assign your contract to your investor do you include the $100, so you get it back or how does this work?
Also, how do you deal with an investor in a situation period when you want to know how much they will pay you for the house you have under contract? or how much they will pay to have the contract assigned?
I was under the assumption that if you’re going to make a pretty big profit, that you do a double closing instead of assigning the contract, right? Well, how do you KNOW how much the investor will pay? Do you just ask? And if it’s a big profit then you do a double closing and if it’s not much then you assign it?
Also, WHAT IF the investor plays by the “whoever mentions a number first, loses rule?”
Posted by Bob-Tx on February 28, 1999 at 21:56:09:
Carey
The title company will deal with the earnest money…you will get it back.
I generally set my asking price on the house. As an investor who buys flips as well as selling them I can tell you I do not choose to play he said/she said when it comes to evaluating flips. Decide what you need on the deal and set your asking price. Your buyer may take it at that price or offer whatever he feels is right.
I have a couple of guys that I have sold lots to and trust to come into the deal even before I make an offer to the seller and tell me what they will pay. Then I deduct whatever I want to make on the deal and write up the offer.
Key thing is to not get greedy. Remember what your position is in the overall picture…you found it and negotiated a buy but you have no risk. DON’T GET GREEDY!! I have had deals sit and get stale because I was asking too much…really tough to go back to your investors with hat in hand and lower the price.
JMHO
Bob