I never intended to be a “wholesaler”. My goal is to buy any house that makes sense, big or small, ugly or pretty, wood or block, 3/2 or 2/1, multi or single family home – any property that can make a profit of course. I don’t want to limit myself and only buy houses in certain areas that meet certain criteria only one way.
When I first got into real estate I was so worried that I wouldn’t find a buyer or the money to buy a house and it held me back. As soon as I realized if it is a good deal buyers and money won’t be an issue.
My confidence dealing with sellers immediately increased. They started excepting more offers like magic, simply because I was more comfortable making them.
The first week or two I typically try to wholesale most properties (especially those that my cash offer was accepted), I think that a fast nickel and no further investment above my typical $100 Earnest deposit is always better than a slow dime. If you could make $5,000 in less than 30 days versus you could make up to $25,000 but it could take 6-9 months or sometimes even more which makes more sense? The answer is probably different for everyone and for me it is different at different times of the year and any number of factors including what else I have going on, projects on budget or rentals all filled!
I typically try to make around $10,000 on a wholesale deal, I have made as little as $7,000 and as much as $38,000 but it all depends on what the property can support and it is extremely important to leave room for the next rehabber or landlord to make money or you wont be wholesaling for long.
You should only put a property under contract that you truly intend to buy. That being said a properly written contract gives us multiple opportunities to back out if needed. You should have an inspection period that doesn’t mean it has to show something wrong, it could be you budgeted $5,000 for renovation and your contractor is quoting $15,000.
I am very open with sellers, I typically let them know there are a few options and I may keep the property as a rental or I may fix the property up and or may sell it. I always want make sure they understand I may have a partner – even if I don’t know who that partner is I don’t want them surprised when I need to show someone else the property. I want to put a lockbox on the property if it is vacant, if I am meeting the seller at the property I bring it with the contract.
So, while wholesaling isn’t my primary business, it is a great tool in my tool kit. It is an exit strategy that can bring me quick cash with minimal effort…
You can learn how to Wholesale too on February 11th at Bird Dogging for Big Bucks! You’ll be on the path to mastering the simple steps to entering the real estate game and playing to win! The best part is that you’ll be doing it in a way that won’t make you risk losing money or your future.
You will learn how to generate leads and negotiate agreements to bring to guaranteed, ready and waiting cash buyers who want to put money in your pocket! You never have to own the property, put your cash into the deal or handle any muss or fuss with the closing. It’s as simple as putting 1 and 2 together and generating real cash in the middle.
I hope to see you there!
To your success,
My husband and I started out less than a year ago after a TV Show “free” seminar and we made no progress with realtors and the MLS in the first 3 months. Then Creating Wealth’s QuickStart Program changed everything! In the last 12 months with Creating Wealth’s support, we’ve closed more than one deal a month (creatively financed too) and we are constantly increasing our goals to the highest level! Creating Wealth’s programs jumpstarted our real estate goals faster than we could have imagined.