Wholesale right to retail

9 Replies

just interested in what is to be said about wholesaling right to the top of the market with non fixer uppers just retail buyers for retail properties. Like for example seller agrees 130 sign and then retail agrees to 145 sign and then profit 15. What are some hurdles here?

I guess what i mean is, if you were to already have spoken and came to agreement with the seller that they would get full 130k  no matter what  to sign contract and you do all the work to get it sold at 145 and the seller understands the fact you built in your own profit and totally supports it.  I feel like this could be done yes? The contract with seller keeps your interest in marketing property but then as the wholesaler you just kind of step back at closing time maybe not even be at the closing. Just let the traditional loan close with the buyer /seller and then get your check directly from seller. Does that sound good or what?

This is basically a net listing (not legal everywhere). If you're looking to work with turnkey properties and retail buyers with traditional financing, just become an agent. This isn't the niche of wholesaling. 

Search “wholetailing”

Purchase off market property at 50-70% of as is value.
List on mls and sell for 100% of value.

This is my preferred method of to attain massive income

Originally posted by @Austin Sanne :

just interested in what is to be said about wholesaling right to the top of the market with non fixer uppers just retail buyers for retail properties. Like for example seller agrees 130 sign and then retail agrees to 145 sign and then profit 15. What are some hurdles here?

 Finding person A to sell their property for less than it's worth would be hurdle A.

Hurdle B would be being connected enough to find person B to quickly buy it for $145k.

@Austin Sanne , there are no issues really providing your attorney/title company is familiar with the process. I have done many deals like this, usually with portfolios rather than just a single door, but it can be done with anything. 

Your biggest problem is going to be your buyer not arriving at the closing table. You then may not be able to close the purchase, (I am assuming you have no money that's why you're asking your question).  So you can lose your EM and get a bad name pretty quick.

You also need to be solid on your numbers. 15K might sound like a good pay day but the net result can be quite different. I have had situations where my attorney has had to charge me big fees on the buy because of title issues etc. that I can't pass on to my buyer.

I've also had issues with the property come up with my buyers inspection that I had to remedy and couldn't recover from my buyer. 

@Austin Sanne Get paid by either buyer or seller to release your interest (which you placed on the title in the form of an Option to Purchase) then they can close directly with each other, same as any normal sale. It works pretty much the same way as paying off a construction lien or paying a broker's commission.