Is wholesaling sustainable for the long term or just for the short term following dips.

8 Replies

I understand finding either decent or great wholesale deals is a product of whether that deal is motivated by personal issues; e.g., divorce, tired of land lording, etc. However, I also know that both the macro and micro economies/markets, stripped of the personal issues mentioned above, also contribute to whether you have a wholesale deal or not. 

My question is based off the later part of what makes up a wholesale deal; i.e., the macro and micro economies/markets. Will these deals really be as prevalent once the markets level off (which we've begun to see), or can we expect to see these markets sustaining decent to great wholesale deals?

I'm very green, so I appreciate any feedback/input.

If you have a system, wholesaling is both easy and lucrative.  The only reason I don't do it exclusively is it isn't as fun as flipping or holding.  It does however fund all of my deals.

Joe Villeneuve
REcapSystem
A2REIC

I would think wholesaling success is pro cyclical to the economy and housing market. Around metro Detroit, in 2008-10 for buy and holds in the areas I look in, one could buy a home all in for 40-45k. If these homes were on the mls for 20-30k, could a wholesaler unload those homes at a discount while still making money? I believe that would be tough to do. Now a days, those homes can be 75k on the mls- much harder to make the numbers work. When the mls has dried up, that is when investors will turn to marketing or others who market and lock up deals at a discount.

@Carson M.  Not true.  I wholesaled 4 houses within the last 48 hours.  Total cost to the "buyer" (the agreed upon purchase price and my fee) averaged under $70k.  The buyers knew we were wholesaling to them, the sellers were Hud, a bank, FMHA and one private seller.

Joe Villeneuve
REcapSystem
A2REIC

@Joe Villeneuve  Just wanted to say a quick thanks. I was wondering if wholesaling to Hud was possible and you inadvertently answered my question without it ever being asked. Thanks! 

Originally posted by @Hunter Allen :

@Joe Villeneuve Just wanted to say a quick thanks. I was wondering if wholesaling to Hud was possible and you inadvertently answered my question without it ever being asked. Thanks! 

 I guess that's the epitome of efficiency.  LOL.

Actually it's pretty easy to do.

Joe Villeneuve
REcapSystem

A2REIC 

@Joe Villeneuve wow 4 in 48 hours !!! And you wholesaled a HUD and bank owned property ???

Joe, I am agreeing with your points. It would
Presumably be easier to wholesale in our market now, then those sought after homes are $75k opposed to a few years ago when the homes were less than half that price. Now a days most investors can't rely on the mls, therefore turn to wholesalers.

The point I'm trying to make for answering
The question is wholesaling
Sustainable long term is maybe it's sustainable with a solid market like we are aeeing now, but not as sustainable if we see a market that was present a few years ago.

@Carson M.  Actually, I have found that market conditions really don't matter much in the way of being successful at it.  If you know what you're doing, (easily trained), and follow it, you can make a very good living at it in any market.

Now, having said that, the market does make it easier, but you can wholesale any property anywhere to anyone anywhere.  Part of the reason the market conditions don't matter can be compared to this statement, "No matter where you are in the world, even if it's cloudy or night where you are, the sun is shining somewhere".

@Cierra Seay  That's right, and I may have turned over two more within the last 2 hours.  You do realize that's not the norm, but if all I did was wholesale I could easily average 2-3 per month.

Joe Villeneuve
REcapSystem
A2REIC