R U CRAZY!!! 3 THINGS THE CRAZY WHOLESALE CLAN DO, C IF THIS IS YOU

R U CRAZY!!! 3 THINGS THE CRAZY WHOLESALE CLAN DO, C IF THIS IS YOU

Recently I began my transition from just strictly buy and hold investing to trying my hand at wholesaling, boy is this a different animal. While trying to find someone to show me the ropes I subscribed to a lot of different wholesalers mailing list some had some pretty awesome deals, some were so-so while others were completely useless. I call these useless wholesalers the Crazy Wholesale Clan or the CWC. If you are a wholesaler you do not want to be a member of the CWC meet-up, or mastermind. The following 3 things you are about to read are clan member tactics that you must avoid, if you use these tactics you are a part of the CWC and you may not know it.

Inflate Numbers—You may think how is this possible, how can a wholesaler inflate the numbers on a property and get away with it. CWC members are very strategic at inflating numbers, I recently saw a property that claimed to comp out nearly 100k below asking and this was not a luxury property you may think WOW, exactly what I was thinking until I looked at the numbers and the property a lot closer. Same square footage, same subdivision, on Redfin the property is only .09 miles away in proximity. However the prospect home was not in the gated section of the community. Yes this is a strategic method that is used to prey on new investors that are not as informed as some seasoned professionals.

Under Estimate Repairs—Classic, Classic, Classic, if you have ever encountered a CWC member you are aware they can get the best work done on a half a shoestring budget, and done in 30 days or less. These crazy wholesale clan members would make excellent flippers because they can get material for nothing, labor for nothing, and they are able to list and sell a house in days. In their lexicon “complete gut” does not exist.

Fees What Fees—The final tactic that is used and I am unsure why this is in their tool kit, but when they are doing the numbers they do not account for all fees associated with the purchase, holding, and seller concessions on the back end. Even I know as a new wholesaler to immediately deduct 10% from the ARV for fees. I believe some wholesalers skipped this section of the guru handbook on making $5000 in 30 days or less.

I would like to warn wholesalers that are getting started or have started out on the wrong foot beware of being recruited by the CWC, and if this is you please use this as a template to make changes in your business model. There are honest wholesalers that are working extremely hard to provide excellent deals for the flipper and the passive income investor. I urge you drop your membership with the CWC or you will be and EX-REI.

If you have come across a member of the crazy wholesale clan (CWC) and you are aware of other tactics please share, I want to make sure the real investors get great deals and not fluff.