THINGS TO KNOW TO SELL TO REHABBERS/FIX AND FLIPPERS

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So I acquired a home that needs almost everything fixed and I plan on assigning the agreement to a wholesaler, rehabber, fix and flipper, etc. What are the core things I need to know when buyers call me about the home in such condition? One buyer I spoke to today asked if the water and sewer were public (no idea what that meant) and if the oil tank is underground. I learned REI with the rental property way but I'm expanding my streams of income with my portfolio. Thank you in advance.

If you're going to be reselling a property to another investor, you need to know as much about the business as any of those investors.  

If you were to walk into a car dealership, asked the salesman about a particular car, and he said, "Yeah, I don't really know the answers to those questions," would you want to do business with him?  If you go to the doctor with a medical issue and find out that he knows less about medicine than you do, are you going to feel comfortable working with him?  If you walked into a wine shop and asked about a bottle wine and the person working there said, "Sorry, I've never drank wine before," would you want to keep shopping there?

In nearly every business I know, we expect the person we're buying from to be more knowledgeable about the business than we are.  Yet, when it comes to wholesaling, wholesalers think they can be successful with little or no knowledge about the business.

If you want to successfully wholesale, here are some things you need to know:

- Accurate rehab estimate

- Accurate ARV

- How to price the property so that it's a great deal for a buyer

- Everything about the house you're trying to sell (like if it's on public water/sewer)

- Local permitting requirements

- Local buyer demographics and stats

- Etc...

I know a lot of wholesalers think it's the buyer's responsibility to figure these things out, but if the wholesaler doesn't know these things, they will price the property incorrectly, and their buyers won't want to do business with them.

More than 99% of the "wholesalers" who have contacted me over the years I would never do business with, simply because they don't provide good deals.  And they don't provide good deals because they don't know enough about the business to know what a good deal looks like.

Go flip a few houses first.  Once you're comfortable spending your own money based on your deal analysis, then you can move on to taking on customers and helping them do the same.

Originally posted by @J Scott :

More than 99% of the "wholesalers" who have contacted me over the years I would never do business with, simply because they don't provide good deals.  And they don't provide good deals because they don't know enough about the business to know what a good deal looks like.

Go flip a few houses first.  Once you're comfortable spending your own money based on your deal analysis, then you can move on to taking on customers and helping them do the same.

BINGO!!! This should be laminated and passed out to every "wholesaler" (I use that term loosely) who wants to get into that biz.