big profits in wholesaling??????????

Question

i see all the time on diffrent gurus pages where some testimonials have profited in sums of 15k and upwards of 25k but i have never cae across a wholesaler who has said they have made that much on one deal,i was just wondering if  u could really get profits of 20k on a whosale deal if so explain deals that you have gotten or your biggest deal to date

Joel Soforenko · Answer

If any of you wholesalers are looking for hard money to fund your deals, I work with lenders in all 50 states.  And, as everyone knows, there is no 100% financing.

Eddie Price · Answer

Gj ray, could you provide us some details?

Ray Allen · Answer

well....I'm making 22,500. this tuesday on a wholesale deal. :) Just wanted to give you some inspiration!

Richard Lorenzen · Answer

Ryan hit it on the head. The wholesalers that try to hit a home run every time they go up to bat and reject all deals that are any less than a home run never end up making any deals.

Try for base hit after base hit.  Consistency is key. I aim for $5k-$10k per deal.  That's much more realistic and you'll be able to sell deals faster and thus do higher deal volume when you're not overpricing your deals.

Ryan Webber · Answer

Profits margins normally depend on the price of property you're dealing with, which corresponds to your market.  If you're dealing mostly with $30,000 houses then I would expect $3-5K per deal.  If you're dealing with mostly $100,000 houses then I would expect more like $8-10K per deal, $150,000-$200,000 houses I'd be looking in the $15K range per deal.

Yes, you can make, and I have personally made $20,000+ on smaller wholesale deals, but that's not the norm.  My target is $3-5K in profit on a deal, and every once in awhile I will hit one out of the park.

I remember I had one house that would retail for about $75K and it needed 10K in repairs.  It was a smaller house in a lower middle class area that has a fairly strong appeal for landlords and rehabbers.  I had an investor that loved to carry notes in the area and I knew what his purchase numbers were.  I asked the seller what he needed to get for the property and he told me $20,000.  I told the seller we could work with that and I got a contract signed.  My investor wrote me a check for $45,000 when I closed and I walked away with $25,000.  He was happy and I was, too.  :D

Does it happen every deal, NO.  Does it happen every 20 or 30 deals, NO.  But does it happen, YES.  You focus on just hitting the ball, and every once in awhile one goes over the fence.  That's the game.

Richard Lorenzen · Answer

It depends on deal size.  Obviously you're not going to make $15k on a $50k REO in a war zone.  Bigger deals= bigger fees.

James Hiddle · Answer

The key to wholesaling is consistency. Keep doing deals over and over.
            
            The idea isn't so much as to find those deals that make you $15-$25K but to make several deals that land you a nice monthly pay.

Jeff Warner · Answer

Wholesaling is not about making huge profits, it's about making consistent profits. In order to have a solid buyers list and lots of repeat buyers lined up and ready to buy your next deal (assuming you've given them good deals) you'll want to leave the bulk of the profit on the table for your buyer. Afterall, the guy doing the rehab is the one who is taking all the risks therefore in my opinion they should be the one making the big money.

On average plan on making 3-5k per deal. That's good money considering you may have a few hours of your time, maybe some title search fee's and earnest money (which should be held in escrow by your title company or closing attorney anyway) into the deal.

That being said, can you make 10, 15k or more? Of course that's possible, just not a regular thing when your Wholesaling properties.