I would like to know id i could do wholesaling allso with cars,
meaning i find a guy what want to sell a used car, and its a good deal,
2800 $so i offer him that i want to buy it and giving him a deposit for 100$ and i find a buyer and tell him that i am selling it for 3500$ and tehn he buy it and i getting the difrents between 2800 to 3500
thats means 700$ made-is that something what people do?
please someone let me know.
Happens every single day in our Country. Of course this happens and you can do it to.
Nate-WI
I was working towards becoming a car wholesale dealer prior to becoming a real estate wholesaler. It is a lot harder to become a car wholesaler then it is a RE wholesale. This are the major drawbacks to becoming a car wholesaler
1 You have to have money or a floor plan credit line in order to “purchase” the cars. In other words, you can’t assign a contract for a car like you can do with RE.
You will be regulated by your state. Which means that you will have to be licensed such as having to acquire a traders license, you will also have to be bonded
You will have to have a dedicated office space and it will have to pass inspection by the state’s Motor Vehicle Administration.
You will have to pay to have your vehicles transported to and from the dealer auctions.
The profit potential is no where near that of wholesaling houses. The average profit per car that is wholesaled to a dealer is between $100-$500. Also keep in mind that a car wholesaler can lose money. If you buy a car for $3000 and can’t sell it for what you paid or more, that is money out of your pocket. Remember you have to actually pay in order to get the cars.
I hope this helps. To me there are just way to many drawbacks to being a car wholesaler and way to many benefits to being a Real Estate wholesaler.
Disagree, I’ve optioned cars many times and then sold my option to the end buyer, just like real estate. I also used to go the the car auctions with a dealer friend of mine (he got $100 plus lunch) and buy luxury cars for my personal use and then sell them later at a profit.
Plus I have a friend that had a lot on a busy street and rents a space to car sellers. He doesn’t need a dealers license because he is not dealing. He maintains an office there but for another business.
Before that in his early years he had a car lot and only did consignments and didn’t have to pay for his inventory.