I'm RE noob but most of the wholesaling going on that I see, is for property that needs work. My question is what do you do with good properties that are for sale but they actually have been kept up and have been appropriately managed? How do you put those on contract and wholesale? I have several off market properties that have been offered to me. However they are healthy but you can't just ask an owner to drop his price, especially when it's performing good.
I'd buy them myself but I don't have 500k to throw around lol.
That's where wholesaling gets kind of tricky. It really only works for either motivated sellers or homes needing work. You could try marketing them as "turn key" properties. In this situation they may or may not sell and you need to make sure that the property owner understands that. I would tell them up front that you plan to wholesale the property. Your other school of thought could be looking for an investor who is wealthy but short on time to partner up with.
Ryan Dossey, Call Porter | http://Callporter.com
@Jonathan Napper buying a $500k property anywhere near it's value seems pretty risky without already having an exist strategy. In these kind of cases, if you factor a 6% realtor fee for seller/buyer side (500k x 6% = $30k) and you have worked up a buyer list for these kind of properties, and you have an contract with your sellers they pay a flat fee to you for the contract, say $5k or $10k in that range. You just brought in a buyer, didn't have 100 people walking through their house, and you also have a long term client (and I would seriously be considering having a RE license if you were doing a lot of these, probably would end up listing some of them too) ...
Otherwise, I think you are spending time working for deals where you are going to do a lot of work and not make any money! Good luck.
thanks for the wisdom Nathan.
It's not just this one $500k, I have some that are as low as $30k with seller financing, it's logistical hurdles that prevent me from acquiring them myself, but it that my only options when I come across a good property is to either purchase or decline. There's no other way I help others and profit too?
If your sellers want full retail value then it could be possible to pass the lead on to a Realtor to list for sale. This is of course if the sellers don't mind paying commissions and closing fees. The Realtor can't pay you a cash referral if you aren't licensed but you could ask for a gift card (and cash that in)
Just one idea where everyone would benefit.
interestingly enough, this owner is open to owner financing. These are solid gems cash flowing, should I be okay with paying a fair price?
"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." - Warren Buffet
Why do investors pay wholesales fees for "diamonds in the rough" when I found an already polished diamond?
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