How do you overcome this obstacle when wholesaling a property?

How do you overcome this obstacle when wholesaling a property?

Real Estate Investor · Baltimore, MD · Member since 2008 · 1k+ posts · 268 votes

Ok, so we had to close on a deal that was meant to be a contract assignment. Here are the numbers:
ARV 110k
Repairs 20-25k
Rent 950-1000
Originally asking 35k
Bought for 20k, had to repair the back extension (mechanical problem) - 3k

Here is the obstacle - I have people (marketing to investors) interested (numbers do make sense don't they?). But as soon as they found out how much we paid for it (public records), they either stop responding, or give a low-ball offer (low 20s) or say - "wow, you are trying to make so much money with this property". Yeah, but I had to find the deal and pass it to you to make money. I mean - if these numbers make sense to you, why would you not do a deal - because someone else makes money on it too? There is plenty left for everyone involved in the transaction.

Have you ever had this problem? How do you suggest we overcome it? How do we sell the property?

I suppose some might suggest "don't be greedy, sell for what you can get for it" - but the problem is, the offers that we had barely cover our holding, closing, repair costs and purchase money.

I think we might get better chances of selling it when listing on MLS as a handyman special ?

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Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes
17y

Jorge,

I'm guessing you are referring to my comment about wholesaling not being for everybody. I didn't receive an email from you, but I have no issue with just discussing it here.

My laughter was based on your extreme negativity with wholesaling. It seems like you might be letting your lack of success sour your vision for the opportunity.

Failure will come in any endeavor, and how you deal with that failure is what will determine the level of success you achieve. You experienced failure in wholesaling, and you have become bitter and let it steal the vision you had.

I have come to similar hurdles in my business on multiple occasions and instead of letting it steal my vision, faith, and determination, I pushed harder. I strengthened my vision deeper and mustered my faith and determination to a higher level and pushed through.

Not everybody will make that choice. There is a price to pay for success in ANY endeavor, whether it be in real estate or in music or in anything. If you are not willing to pay that price, you will NEVER have any level of real or lasting success.

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  • Metairie, LA · Member since 2008 · 165 posts · 1 vote
    17y

    Ryan, this is true and an excellent post...I feel "gurus" are to blame to a certain extent..the way they teach real estate, everything is so dumbed down that they make it seem like anyone can do it when, in reality, many can't..Also, a lot of these guys have had excellent mentors and found their niche in other areas of real estate before deciding to market in another area..Their products are just "Do this and this and go to closing to get your check"..No mention of plans, the work involved, the commitment or study of the local markets. Of course these things don't help to sell courses..lol

  • Specialist · Jacksonville, FL · Member since 2008 · 140 posts · 14 votes
    17y

    That statement sums up life's achievements. Wholesaling is easy when you first get over the learning curve of learning real estate and marketing. I live by the 10,000 hour rule. In order to "MASTER" anything you must put in at least 10,000 hours towards that craft.

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