Any experienced Wholesalers? Am I making a mistake?
Im seeing opportunities that could possible be great fix n flips. My biggest concern is that if I put a property under contract and can’t find any buyers I’m screwed. I know that this concern comes from a lack of knowing whether or not what I’m looking at is a good deal. I’ve learned a majority of how to wholesale through Jerry Nortons Yt channel but, I’m having trouble pulling the trigger! What can I do to help myself?! Please if someone can point me in the right direction.
Make sure you have an inspection contingency in the contract. That's what its for. We contract most everything with 21 day inspection 30 day close. If you cancel on day 20, you get your EMD back, if you cancel on day 22, seller should keep your EMD. Easiest way to do it when you're new is to basically just do acquisitions for a good buyer. You wont make as much but it's half the work and you'll learn a lot. Find a buyer that will actually pull the trigger on stuff and go find him a deal. Build some trust so you don't worry about him going behind your back to steal the deal from you. Lean on him to tell you what he'll pay for it. Then go get it in contract for less than that number. Let him confirm his rehab during the inspection contingency and make an easy fee. You can try to max out your fee later when you know what you're doing
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
Building your buyers list before you put property under contract is essential. Know who your customers are before providing the product. You will have an option period in your contract, the property should be assigned before that expires.
I agree with @Eliott Elias here. If you can build a relationship with even 3-5 active buyers in that market it could be a game changer for you. If you get good at finding a good deal, disposing it should be a relatively easier task.
You need to make sure you have a solid contract and a contingency period. I have a great one created by Pace Morby's lawyer which I can send to you. Also, join his creative finance FB group and you'll find buyers there! If you continue on this journey and find you are over extended on EMD, I'm happy to help.