Making money using hard money and wholesalers

[Chris White]

So we closed on selling our second flip today and both deals were with a hard money lender and a wholesaler, at the end of the day we lost money. We thought we had made a small profit on the first and had rolled in to the second and today doing a final accounting of the numbers the loss was clear. I went back to the HUD's for both properties and realized that we did not account for the large fees for closing and that affected our profit from the start. If you have dealt with a wholesaler before to get the house you have to give a $5,000.00 non-refundable deposit and then go get the loan.

We are just starting and have a small amount of capital to work from, we are considering a shift in strategy but my question is has anyone made money working with a hard money lender and a wholesaler?  I would be interested in learning what made you successful.

Thanks,

Chris

[Rick Pozos]

PS I would NOT recommend certain Large wholesale companies in San Antonio. Ask other investors. Everybody that I know has come out pretty close to break even with the "we sell 20-30 deals per month" companies.