Exit Strategy for a (possibly bad) Wholesale deal

[Darrell Jones]

Hello everyone I'm somewhat of a beginner wholesaler and I currently have 2 Unit Multifamily under Contract.  What I thought was a good deal after walking through it for rehab cost and pulling comps then going by the 70% rule and calculating my numbers, I'm at a dead end.  I put the property under contract with the seller for a set price then went back after realizing an investor wouldn't pay what I was selling it for and was surprisingly able to talk the seller into bringing the price down 5k AFTER the fact we already had the property inked for a set price.

My closing date is coming up fast  I'm thinking I may not be able to sell the house.  I have roughly 2 weeks to make something happen.  I really don't think the seller will be willing to renegotiate the price and I've cut my whole sale fee down to the point where I will barely make any money.  Anybody have suggestions?

[Bill Gulley]

Kiss this goodbye and stop holding up the owner with BS during the peak marketing time keeping their property off the market!

A 2 unit is not a multifamily so, like the other 32,368 wholesalers out there, you haven't learned real estate before you jumped in with the wheeler-dealer whizbang guru stuff, other wise you wouldn't be in this mess. 

What I'm seeing here is:

1. you didn't know the local market

2. you didn't value the property correctly

3. You missed the boat on rehab costs

4. you didn't have a buyer who would be interested before you contracted

5. you entered into a contract you couldn't perform

6. you took the seller's property off the market so they can't sell chewing up their marketing time during the summer months

7. probably put it under contract under false pretenses   (you did renegotiate it)

8. you thought a duplex was a multifamily

9. now you'll have egg on your face trying to jump in to do something you don't have enough knowledge about, so you lost this seller as recommending other investors 

10. Hopefully, the seller won't sue for breach of contract, even if you had weasel clauses, which will point out your attempt to some judge and the RE Commission. 

Wholesalers who don't learn the basics of real estate before trying to follow the guru dream are simply an accident waiting to happen and a public nuisance. 

Real estate isn't that hard, but it's not easy either, learn the basics before you begin messing with the public, which adds to the regulators wanting to torch all investors! :)