I have been working on wholesaling properties for awhile.
I have some great deals, but I can’t seem to close the deal with new investors. Experienced investors no problem.
What do you do to help the newbies get into the game?
Thanks!
Alot of it comes down to confidence…
I like to tell my coaching students that you need to get to the point where you literally feel bad for the investors who aren’t working with you.
Like you see them drowning and know that you have the only life raft in town.
If you use shifty terms like “maybe, I think, I could, I thought about” they will pick up on your inexperience.
You know how in the forums when you read a post by someone who doesn’t have a clue what their talking about other than what they’ve read elsewhere…It’s that kind of language that sends B.S alarms off in investors heads.
So to answer your question, confidence is the place to start.
Thank you.
By the numbers you have posted it doesn’t appeal to me at all. Although I guess it depends on what the buyer is going to do with the property.
Just my .02, I’m a nOOb
Aces,
If the house is actually worth 150k, this still does not look like a good deal. Did you run comps yourself, or are you going by what the realtor told you? Assuming the house needs no repairs at all, you are still in at over 70% of market value. Maybe things are different where you’re at, but in my market, those numbers will not fly.
Do you plan on closing on the property if you can’t find a buyer?
Steph
I’m trying to understand the deal. Let me write this out and maybe I am off track please let me know. You are selling the contract for 117,000 dollars correct which you would walk away with 5,000 cash. The Realtor appraised it 169,000 after 11,000 dollars is done to get the price up to 169,000. The Seller owes 76,000
169,000 ARV (After Repair Value)
x.7 (I’m using 70%)
=118,300
-11,000 (Repair cost that Realtor stated)
=107,300 (Wholesale Price)
-5000 (wholesale profit)
102,300 (Top Offer)
Now if you want to buy it with out repairs do the same using:
149,000 (Retail “As IS”)
x .7
= 104,300 (Wholesale Price)
-5000 (Wholesale profit)
=99,300 (Top Offer)
I hope I am on the right track tell me if I am not. Thank you and God Bless all of you Tom
I’m sorry I typed it wrong I thought it was a 0 when I typed it. That is what I get for not proof reading it before posting it. just redue the ARV to 160,000 sorry. I need to re-read DUH! on my part. $101,000 Sale Price and $96,000 should be Top Offer.
thanks for the sharing.
I’m just throwing this out there from my experience. There use to be a guy that was an active member of my REIA here in Baltimore. He did nothing but wholesaling. He was making insane profits off the volume he was doing. I talked to him to pick his brain on how he was doing so well. He told me that 50% of his business was newbie buyers. I asked him how could that be. Newbies don’t know much if anything about rehabbing, selling or managing properties. He told me that it is easy to close deals with newbie buyers if you make the deal as “handsoff or turnkey” as possible. So I asked him what did he mean. He said that he had connections with Hard Money lenders to line up the financing for the newbie, he had mortgage brokers that could get them out of the hard money once the work was done, he had access to property managers that could manage the properties for them and he had access to real estate agents that could sell the property for them. Then he asked me did see what he meant. He made a believer out of me. :bobble
Would getting a BPO done help?
Xpandergt,
That makes sense about what that successful investor was doing. It looks like he eliminated the fears/worries of the newbie investors by giving them access to resources.
The only thing though I think is the liability that comes with it.
“You referred me to Joe Smith Property Manager…but he ruined me” blah blah
I wonder if he encountered any of that.
I see your point investorman. I have to ask him how he protects himself, because you are right. In a lawsuit society, whoever is in the path of a person being wronged is gong to get sued. Since the property manager, hard money lender or whoever doesn’t work for the wholesaler, I guess all he would have to do is have his buyer sign a disclaimer stating that the people the wholesaler advised him about in regards tot their services have no affiliation with the wholesaler’s operation and is not liable for their services or advice rendered. I would think that would be enough for the wholesaler to cover his or her bases.