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Do
your own research: Remember, it’s your money, so when looking at purchasing a
property make the time invested worth your while. Verify what the value of the
house will be after completion of the needed renovations. Familiarize yourself
with estimating repairs and establish a rapport with a general contractor.
Reputable wholesalers do their best to provide accurate and realistic ARVs and
renovation estimates, however there are thousands of variables, so don’t go
solely on their word or on appearance alone. In short, educating yourself will
save you time and money.
Use
good timing: Wholesalers are like any sellers – timing is everything. Often the
best time to negotiate is when the property hits the market. Most times
however, it’s a waiting game. You have to keep your name – and price! – in the
sellers mind. Do this by determining a price that works for you and sticking
with it. If you can’t trade with the seller then simply walk away, but make
your interest known. Stay in contact and you’ll stay in the game. Over the long
haul, if the house still hasn’t sold, and your name is the one the seller keeps
seeing on his messages, you’re probably going to get your price.
Use
strong financing: Secure your finances first. If you have cash, show it to the
seller. If you are pre-approved, then have the documentation to prove it. Don’t
forget the bottom line, which is an exchange of currency for property. Once
this is out of the way it won’t be an issue and you can focus on your concerns
and the seller can focus on addressing those concerns.
Develop
a Relationship: Strong relationships are the heart of any business transaction.
So if you can’t get on the same page with a seller, don’t burn the bridge.
Simply state your reasons for not being able to comfortably purchase the house
and leave on a good note. Chances are the seller has other properties that will
come open in the future. Leave your meetings on a good note and you’ll be at
the top of the list when that seller begins to make calls trying to pitch their
properties. Think of it as getting on their “preferred customers” list.
Preview
and make an offer or give feedback: Use common and professional courtesy. If
you say you’re going to look at a property then go look at it. If it’s nowhere
near what you were looking for explain to the seller why. This lets them know
that you’re a serious investor and more importantly what kind of property you’re
looking for. Giving the seller pointed information as to why you’re not
interested will set the parameters of what you’re looking for. Thus maximizing
your time by not being shown every tarpaper, shotgun shack they may be trying
to sell but instead garnering your leads on the house you want to buy.
Article written by Chris Wall www.atlantainvesting.com
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