The ugly truth about Wholesaling

[Anore' Allen]

Wholesaling is easy. Wholesaling on a consistent basis is HARD.

First of all most newbie wholesalers have little capital, so saying "we buy houses" is a lie if YOU don't personally have the funds to close.

Lie (Noun)

Actual definition:

a false statement made with deliberateintent to deceive; an intentional untruth.

BUT WAIT....

If you use a "transactional lender" you technically are buying the house right?

Well yes... But.....

Then there's the proof of funds dilemma.. You cannot target the average Becky and Joe Dunn who have a real estate agent and attorney working with them 99% of the time the deal will blow up before you even get a contract signed.. Proof of funds that you can just download off of the Internet most likely won't work with the average seller, they will call or check the website and get freaked out.

You need to target DISTRESSED HOMEOWNERS that NEED to sell quickly, at least in their minds. Vacant properties will serve you best, your chances of contacting a FSBO from Craigslist and getting them to sell 70% ARV minus repairs, minus your fee is very slim.

Guru's make it seem so easy, "find a motivated sellers and a buyer and ...Boom make $10,000!" That's BS. There's title issues, tax issues, the seller may have family members that kill the deal, your title company may not know how to do or allow certain transactions, etc.

There are people that wholesale successfully but I could count them on one hand, I've noticed most of the guys that used to kill it are now coaching, HM...I wonder why (because the income is inconsistent!)

If you really want to wholesale target Vacant properties, dealing with tenants in the home is extremely difficult especially when your buyers want to see the home, although there are ways around it the buyer could easily go around you (just wait for your contract to expire).

Wholesaling is a rough, gritty business don't fall for all the glitz and glamour tales you get from the guru's, YES you can succeed in Wholesaling but if you don't target the right people and prep them for what you're gonna do you'll end up like 99% of all the other wannabes...