Hi everyone, I have been listening to the podcasts about wholesaling and the main question I have is: Is wholesaling strictly geared towards cash buyers or can you do buyer financing?
Is cash buying simply a means of making the transaction happen as quickly as possible or is it completely necessary?
Has anyone had experience wholesaling to a buyer who needs financing or is that more of a realtor thing?
I still have yet to make my first deal however I have built a list of properties and am sending out my mail this week. I am still new to everything so any advice will help! Thanks guys!
There's a lot of different ideas about what constitutes wholesaling. Generally, a true wholesaler - meaning you're going to want to pass the property off to another buyer - is going to want to arrange things so that she can work with financed buyers as well. It opens up a much wider buyer pool.
If you're doing an "I buy houses" effort and promising you can do a 3-day close like some people I've seen on here, you're going to need to be able to pay cash for the house, actually close on it, and then resell it to someone else. But most wholesalers are setting things up for a 30-day close so they have time to find a buyer, let the buyer do financing if need be, and then close.
This financing would typically be an already set up investor line of credit. A wholesale deal doesn't give you time for a buyer to start from scratch on financing.
@Hadyn Hausler The goal of wholesaling is strictly to get in and out of a property as fast as possible and get paid for your efforts. So that is why wholesaling is geared to use cash buyers. They have cash, you can assign your contract to them, and they can complete the deal within your 30 day closing you set-up with the seller.
You can work with people who will use traditional financing and be owner occupants, that is called wholetailing. You can sell for a much higher amount to them, assuming the property is in good condition, but it can be a hassle as you need to know if they are pre-approved, and the lender might need to do inspections and appraisals etc. This is why wholesaling is a much easier approach. In and out with $5K-$10K in your pocket and just keep repeating the process. But both ways will definitely work.
I lived in Chattanooga for 10 yrs. 2 of those was in Hixson. I went to Abba's House and my husband worked at the Olive Garden. We also used to be house parents at Bethel Bible Village. What a small world. I am a wholesaler now in south Alabama. Let's connect!
@Michael Hayworth Yes that is what I suspected, just wanted to make sure. I'm sticking with the 30 day close. Thank you for your clear explanation!
Love your enthusiasm, I have done some holds and flips. But I am new to wholesaling. You mentioned your first mailing, are you doing yellow letters, or post cards? I am trying yellow letters first, with a Google voice number as a contact point is that similar to what your doing?
I have 10+ years wholesaling. This question is a classic example of how the podcasts, books and CD's make wholesaling sound so easy. Not that it's hard, but understand those podcasts, books and CD's for what they are: an introduction to wholesaling to get you excited enough about it to buy more advanced training. They are not an action plan.
To paraphrase what someone else wrote in this thread, hooray for your enthusiasm. You should be enthusiastic because wholesaling is a lot of fun. However, at your experience level, you may want to team up with an experienced wholesaler in your area to help you work your leads when you get them so that you handle them properly. Based on your question, you are at risk of mishandling them and walking away with nothing in exchange for your time and money.
Better to cut someone in for a percentage of something than try to hold onto 100% of nothing.
Thanks @Edwin Fisher !
For my first mailing I only did 25 and they were typed letters in an invitation style envelope. The mailing address and return addresses were handwritten and on the typed letter I signed my name, I think it looks more professional.
After 3 days and only 25 name, Ive gotten my first call back and I am going to see the property tomorrow! Very exciting!!
@Account Closed very good advice and I understand completely. I feel the same way about the podcasts, it is easy to listen but harder to do. However, I have full confidence in myself and I am definitely wanting help along the way! I appreciate your advice and will take your words of wisdom!
I have no interest in wholesaling, but I would think you need to be prepared to personally close the deal yourself if you cant get a buyer.