I have also had success in wholesaling although I would highly recommend just becoming an agent who specializes in locating properties and negotiating them for cash buyers.
It is important to remember that a wholesaler traditionally sells their promise to purchase to another person...this means that you have entered into a contract to purchase a property. If you have no intention or chance of ever purchasing that property than you are entering into that contract in bad faith.
The solution to this is to have hard money lenders willing to lend you the money or partner up with you so that you can buy it if you cannot sell the promise to purchase.
This means that you need to:
1. Know how to evaluate the After Renovation Value.
2. Estimate the renovation figures accurately
3. Network to find reliably people who know real estate and are comfortable investing in high risk deals such as the ones you are going to be bringing them.
4. Make sure that the price that you are offering is a guaranteed deal if it is accepted by the seller, there can be no doubt in anybody's mind about this...otherwise you are exposing yourself to a lot of risk on a lot of different fronts.
I would also advise complete transparency with the seller.
Hello from Regina sk!Trying to set up Wholesale real estate in my city.Would you recommend some marketing strategies for finding motivated sellers please?Thanks a lot in advance!
I am looking to start wholesaling in the Greater Hamilton Area (Ontario). I believe there is a market for it, just make sure you set your business up first, learn your local laws & zonings, build your local power team, find some buyers, and find some properties!
Hi How does a wholesaler typically show what properties they are currently selling and are there and wholesalers who could refer me to their website? Also with the coming recession would it make more sense to try and find a property myself(using a wholesaler because I don’t have the time usually to find a property myself)?
Don't have too much experience with wholesaling but would be interested to learn more as well!
I mostly focus on acquiring rental properties at the moment. It does seem like it should be possible, I am looking to test direct mailing in the future.
Hey Jordan, I know this is an old thread. Have you tested out direct mailing? Curious to brainstorm with you on the results. My background is in online marketing, I'm looking at online ways to do wholeselling.