Wholesaling question

[Greg Ward]

Hey guys I am becoming increasingly interested in the topic of wholesaling. I think it will be my way into real estate, something I have always wanted to pursue. I have one question about wholesaling properties that as of yet no one has addressed. What happens if you get a property under contract but can not sell it? Thanks!

[Hattie Dizmond]

@Greg Ward 

That has been addressed in tons of forum threads.  But...short version...

You lose your earnest money, unless you have included what is referred to around here as "weasel clauses".

Look, if your deal is good enough, you will have no trouble selling it.  If your deals are good enough, people will be coming to you asking if you have new deals available.

It doesn't sound like you will have the ability to actually close on a property yourself.  Therefore, it is crucial that you are super conservative on your analysis.  Remember, if you put a property under contract and can't close on it, you have hurt the seller.  You have tied up their property and wasted their time.  If you do that often enough, no one will work with you.  Reputation is everything.

Wholesaling is hard.  It's work.  You have to be an expert on the market you're working in, on marketing, deal analysis, estimating rehab costs, etc.  It's hard.  It's also not without cost.  Yes, you can drive for dollars and put up bandit signs with very little money.  But, to really get your lead pipeline cranked up, you're going to need a marketing budget.

Spend some time getting educated. Pick one or two zip codes and learn everything there is to know about the market within those zip codes. Become an expert on deal analysis...creating comps, determining ARV, estimating rehab, etc. Get educated. Get involved with your local REIA. Listen to the podcasts. Read the Ultimate Beginner's Guide. Take action, but make sure you know what action to take first.