Do you guys get a house under contract if there is even the slightest possibility of a deal?
What are your stats on deals under contract that don't result in closings? What should your close rate be?
Just now saw another wholesaler marketing a property that I dragged my feet on because I didn't really think there was much of a deal. Curious to see if he sells it.
@Thomas I. I wont put a property under contract that I wont buy, and therefore we have a 95%+ close rate (have to have clear title). Of course I buy it so if I can sell it great otherwise we rehab or hold it. I find that many people need these properties sold, and some people lead them to believe they can perform, when if they cant sell they could never perform. Just my .02
I learned many years ago never to work on marginal deals. Period.
One of the most profitable skills I've found is knowing what I don't want and sticking to it.
Over the years I've developed a written deal criteria and ever-improving systems for generating leads thru various funnels, vetting, qualifying, sifting and sorting, as well as nurturing and closing.
I learned that you'll spend just as much time working on a marginal deal or maybe more, trying to get people to do their part (argghh).
This is the result of disqualifying people who are not motivated on the front end or unwilling to self select and somehow get past the barrier. Then eliminating those by redirecting them to others who are willing to work with them, if we won't.
This has the affect of being able to focus on high-profit opportunities and using my resources optimally.
Does that answer your question?
@Thomas I. You can use an option to buy contract to leverage the property without binding to a purchase agreement. This gives you more time and options to find your buyer without the pressure of being bound to the purchase. When you find a pre-qualified buyer, you "exercise your option" to buy. Check out Brian Gibbons/https://REISkills.com
He is on Forum alot also. Good Fortune to you !
these strategies in my mind are regional... might work were you have a plethora of homes that need major work.. on the west coast your going to play heck finding anyone who will give you an option.. they will want serious EM and a close in 30 days or less. and many times will not allow assignments at all. If they are represented by realtors here in our market ... To many realtors have been burned by the no money wholesale gig.
However in your market I can see that working all day long given the amount of inventory you have to work with.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!