I've been learning a bit about wholesaling and I'd love to hear from experienced wholesalers what the potential is. Obviously, the perfect storm of circumstance, timing, a motivated seller, etc can lead to some jaw-dropping figures.
So, wholesellers, what's the best deal (buy price relative to ARV of the property) that you've landed when working with motivated sellers?
@Alex Huang it really kind of depends on the sandbox you play in. The best deal I've ever had from a standard wholesale cash transaction was about $30,000. I know wholesalers who've made as much as $50,000 on one deal but that kind of misses the boat when it comes to wholesaling. If you're doing it as a business the frequency and average deal matter a lot more than the positive outliers. When you do enough deals, you're going to have those positive outliers (e.g. two standard deviations above the mean) as well as negative outliers (deals where you make little to no money). Don't forget there are often highly leveragable points in a transaction where you can create a ton of value (e.g. paying to for yard care, cleaning the place up, moving stuff out the house and placing in storage, paying for little things that have a huge impact) as well that you can create big value with e.g. for every dollar you put in you get out $20.
Best wholesale deal I've ever done was a $30,000 double close deal. I was sort of struggling with wholesaling at the time. I was just getting back in it after about 4 months without a deal. And then I got the call. I still remember where I was at and how I felt after the call. I knew It was a smokin deal. I've had an even bigger deal ($50,000) that was meant to be a wholesale deal, but I took title to it first and cleaned it out (its was a hoarder house). I've learned that these deals are the exceptions and not the norm when it comes to wholesaling. I've made the mistake of trying to push for that $25-$30k deal and it just turns my buyers off seeing that "retail" price tag. I've learned that the $5-$10k deals are the bread and butter of my wholesaling business and Im happy with that. The $25-30k deals are the cherries on top.
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