angeles,
I got your pm and read it.
If youâve made up your mind to do wholesaling then just keep at this until youâre successful. Donât switch horses!!! I would use more exclamation points if I thought it would help.
Meantime, donât get married to a given deal. If youâre able/willing to maintain/increase your marketing you find more than a deal a month. I mean look at what you found already? Do you think thereâll be more like this? Of course there will. Which brings me to another pointâŚ
Real estate wholesaling is first a marketing business, before itâs anything else. Youâre actually in the marketing business in order to do real estate.
Meantime again, donât settle for mediocre deals at the beginning. You need classic âstealsâ right now. Then as you get your bearings, youâll âworryâ about making money on less perfect transactions. In no time, youâll be making very fine distinctions in your prospecting and negotiations. That is, youâll recognize more opportunities as you continue.
I guess what Iâm trying to say is, âJust because you can buy, doesnât mean you shouldâŚâ
Now I ask, âAre there any true comps?â What else has sold that is within 10% of the subject propertyâs sqft of living space and lot size that has the same number of bedrooms and baths? If you canât find at least three actual, genuine comps (sold within the last 90 days that fall within the parameters mentioned) than youâre gambling. Gambling is for investards, to be blunt.
If you canât find adequate comps, then move to a different farm, or niche, where there are comps by my definition. Good comps are probably your critical selling (and negotiating) tool, if not dictating how fast you will resell a given property. Of course you know that being able to justify your purchase (and sale) prices is completely dependent on you knowing your market.
This means getting out and looking at as much property as possible and taking pictures and notes about what you see âŚalong with sale prices and knowing how long itâs taking to sell conventionally in your niche. Notwithstanding, donât waste time looking at odd-ball properties such as farms, condos, mini-ranches, and manufactured homes on an acreâŚunless thatâs your niche. Just stick with whatâs selling fastest at first.
I keep referring friends to flippingjunkie.com. Iâve never seen anyone post the process of prospecting in real time like he does. You might have already read through it. I canât recommend it enough to any newbie (or struggling professional). Itâs an eye-opener Iâm sure.
Also, while Iâm at it, youâre only talking one property⌠Youâre putting yourself in a hangmanâs noose psychologically by not having alternative deals to look at. When weâve only got one deal, we tend to adopt a scarcity mentality and start to believe we âmustâ have that one deal. Forget thatâŚ! :banghead
To answer your question on how to handle the offer⌠This is an art. Short of that you need to ask the seller lots of questions about the sale. Why? Because you need to find out (elegantly speaking) why he wants to sell, what heâs going to do with his money, how much money he actually needs if any, and talk to him for at least a half hour in a way that whatever he says leads you to ask questions that you can use to tailor an offer that suits you, and will meet his needs (not his wants). When youâre done talking, youâll first have developed a rapport (if itâs possible) and subsequently know approximately how far you can go.
Anyway, thatâs all I got without writing a novella. :beer
