What are the top 3 problems when you can’t find an end buyer?

Question

What are the top 3 problems when a wholesaler can’t find an end buyer?

Jim Pellerin · Answer

@Mike Schorah

The general problem is the deal isn't good or good enough to attract any of your buyers.

1. The ARV is overestimated  - This is very common when wholesalers present deals to buyers. Make sure you have at least 3 and maybe 5 strong comps that support your ARV.

2. The rehab costs are underestimated - This is also very common. Wholesalers tend to underestimate costs to make the deal look better than it is. Flippers will do their own calculations and are better at it than wholesalers, in most cases.

3. Price is too high - when putting a property under contract, you want to make sure you allow for all the cost items and a nice profit. A lot of times I see deals are way overpriced because the wholesaler didn't allow for carrying costs and acquisition and disposition costs. This can make up for as much as 15% of the ARV. And most flippers want to make at least 15% profit. And don't forget to factor in your wholesaling fee.

Eliott Elias · Answer

Deal doesn’t have enough meat on the bone

Steven Foster Wilson · Answer

1) Overpriced property

2) The property might just need to be torn down due to how bad the condition is.

3) Bad communication/dealing with seller and buyer.

Jim Pellerin · Answer

What do you mean by problem? The problem would be that you cant find a buyer. Personally, I like building a huge buyers list and only looking for deals that match my buyers requirements.

What are the top 3 problems when you can’t find an end buyer?

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