Real Estate Wholesaling by Stephani Davis | August 27, 2009One of the questions that I get asked most frequently from aspiring wholesalers is, “How do I know how much to offer on a property?”
Just use the magic Wholesaler Formula, right?
Most people are looking for a magic formula that you can just plug a few numbers into, and out will pop the correct answer..
While there are formulas that you can use as a guide to arrive at your offer amount, there is no cookie-cutter formula that will apply to all markets and all neighborhoods across the board. In some areas you might be able to get away with contracting deals at 65-70% of market value and wholesaling them for a profit, but in markets like mine (Tampa), you are going to need to be much lower.
Great Deals Differ from Market to Market
If you want to be a successful wholesaler, you need to hit the streets and find out what constitutes a good deal in YOUR market. This takes quite a bit of time and effort, but it is something that you need to do if you want to start contracting deals and getting them to the closing table.
Foreclosures by Stephani Davis | August 20, 2009
One of the best ways to get your feet wet if you are a beginning investor or wholesaler is to get out and start networking with other like-minded individuals in your market.
When I was first getting started in my wholesaling career, I was a networking Ninja. My first year I made it my mission to get out and meet as many players in my market as I possibly could, and to introduce myself and let everyone know who I was and what I was trying to do. Some weeks I was going to real estate investor meetings five days out of seven. I was there like clockwork, handing out my business cards and getting to know who the movers and shakers were.
Even though I was scared to death at first, I forced myself to get out of my comfort zone and start plugging myself into the investor pipeline. I took somewhat of a “fake it ’til you make it” approach, and even though I didn’t really have a lot of experience under my belt, I decided that I was going to jump in and rub elbows with the big boys anyway. I read in a book somewhere that you become who you hang around, and so I made the decision that I was going to start hanging around like-minded, successful individuals.
Joshua Dorkin
