I’m going to postpone Marketing Monday for another day because I’ve got an announcement to make…..
Deal #2 is under contract!
My partner did some great negotiating and as of yesterday (12/5/2011) we have a signed contract for purchase. As with the first deal I don’t want to divulge the details until it closes and we get paid. I will tell you that this deal will not be a home run by any stretch of the means, but it will be another notch in our belts and we will have another verified buyer on our list.
As of now, we’ve had one buyer through the place and they are interested. The offer is decent, but is contingent on him getting a plumber out to the house to look at the bathroom. It may need to be rearrange, but I get into more detail on that at another time.
One dilemma that always seems to rush through my body is, how much of an assignment fee should I be looking for? There seems to be too camps setup in my mind…
- Get as much as you can
- Get what you can
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My advice is keep your buyer/investor happy. You want them as repeat clients.
Squeezing them for a few bucks on this deal could cost you thousands in deals later.
Agreed Joe. I plan on keeping track of the property and see how much they sell it for. Will give me a good idea on what he could have paid and still made a good profit.
Just get it under your belt, you are really building momentum now! (on another note, are there anymore REI meetings?)
As far as I know the REI meetings with Jon Zorrer are not going to happen until at the earliest January. I’m guessing that they will slowly die because he’ll have less and less reasons to come back to NJ as he settles into Cincy.
On another note, keep an eye on your mail. I finally sent out the package to you.
I would try to push for as much as you can get. If the investors want to offer less, just say you will get back to them and take the highest one.
You are looking at things the wrong way, if you think it is being greedy. The investor needs to make money, but so do you.
Greedy might not have been the appropriate word to use there. We will be using the strategy you mentioned in the future when we build our trusted buyers list up.
I agree with Steve. The workman is worthy of his wages. You are providing a valuable service and deserve to be compensated. Of course, that compensation is tempered by the realities of what the market will bear, but remember, if you get a couple of “no”s, you can always reduce your price.
I can’t disagree with you Chan, but I can’t afford to hold a house while I look for a buyer. Also once I lower the price, I immediately lose some of my negotiating leverage and appear desperate.
The end buyer would like to make @ 30 percent depending on the deal IMO – so I would would try to get 5-10 percent and leave enuf skin in it for them. to be happy and come back for more!! This all depends on your aqusition costs and potential profit of the the deal of course.. otherwise just get what you can and move on.. something is better then nothing..
That is actually a really good rule of thumb. We usually take 30 %to 45% off ARV before taking out repair costs and our profit when making an offer.
I think you wait for the “Get as much as you can” once you have more buyers and can be more sure that one of them will buy the place. If you try that trick now, you could end up with no buyer for this home and someone irritated enough to not work with you again.
Couldn’t agree with your more Mike. I’m in your camp on this one. We actually just got clean title from the title company and the buyer has agreed to purchase the property. Now we just wait for closing!!
Definitely go with the practical approach and Get What You Can. What’s that old expression, a bird in hand is worth two in the bush. This is especially true in today’s housing market environment
I agree with this approach right now. When I get more experience and build up my buyers list I will definitely negotiate harder for more money.