How many are wholesaling/flipping contracts?

4 Replies

So with seeing some recent negative talk about wholesaling properties... essentially obtaining a property at a very discounted price so it can be sold (double close) or passed (assigned) on to an Investor who will pretty up and re sell the property for a profit... I would love to know how many (if you dare to share) actually do this? 

Would love to see how many do this on a regular basis, and how many deals you get to do per year.  Would love to see how many do this sometimes, and why you do it when you do. 

Would also love to know how much below ARV you get offers accepted on (either a monetary or percentage amount), as in how much profit do you try to make for your investors?

Would even love to hear from Investors who love to buy from wholesalers rather than having to go and find the deals themselves. 

Just wanting to get some positive information from those who love to make profit in this manner and are being successful at it. 

I mostly rehab and sell retail. So, I what do is to actually buy the house (with money) and get the deed, do the rehab and then sell it. Most of my deals come from the MLS, but I would love to have a good wholesaler in my area who would bring me off-MLS deals.

I wholesale sometimes.  Typically, I'll rehab and resell the property myself, but occasionally, the property will be in a location where I don't want to rehab, won't have the profit margins I want (but might for a landlord) or I just don't have the time/energy.  In those cases, I'll typically wholesale.  Also, if I don't plan to start the rehab immediately after purchase, I may list it as a wholesale for a few days or a week until I get around to starting -- if it sells at a price where I'm happy with the profit, great...if not, I'll rehab it.

I'm guessing there are typically two types of wholesalers:

1.  Those who never do a deal;

2.  Those who do 5+ deals per year.

My guess is that 98% of wannabe wholesalers fit into #1 and the other 2% fit into #2...

Originally posted by @Bryan L. :

I mostly rehab and sell retail. So, I what do is to actually buy the house (with money) and get the deed, do the rehab and then sell it. Most of my deals come from the MLS, but I would love to have a good wholesaler in my area who would bring me off-MLS deals.

I would love most of my deals to come off the MLS!!!

@Linda Quinton  my partners and I wholesale about 4-5 properties a month.  We started off working for a company in Fort Worth, Tx (I won't divulge the name).  We have built a very loyal customer base.  We don't just blast properties out to people. It is important to get to know your investors and exactly what they want (that is how we choose to approach wholesaling).  In the past few months, we have moved from doing a single house at a time, to packaged deals.  Not to long ago, I was able to sell 65 houses in Longview, Tx as a wholesale deal and my partners and I were able to make quite a bit of money, but still got our investors a great return on the properties.  There are always people who are going to be either for or against wholesaling.  Some of those against wholesaling may have had a bad experience, it happens.  That does not, by any means, wholesaling is a bad tactic.  Everyone in the real estate business is out to make money, and there is plenty of money to be made.  

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