I have started to wholesale since April 2022 and been trying to get wholesale deals under contract to assign to end buyers as I got 6 deals under contract since I have started taking action but ended up by cancelling them for some reasons.
Any advice about what is the best quickest strategy to close my first deal in less than two weeks?
There's no quick strategy, it takes time to build a solid wholesaling business. If you had to cancel 6 under-contract properties is because you are offering too much. Make sure you are giving the end buyer enough spread to work with. Build relationships and provide value!
If you’re looking for the quickest way to Wholesaler deal, you’re going to fail. Look for the best way to wholesale a deal, look for the best way to find buyers, look for the best way to find a deal.
There's no quick strategy, it takes time to build a solid wholesaling business. If you had to cancel 6 under-contract properties is because you are offering too much. Make sure you are giving the end buyer enough spread to work with. Build relationships and provide value!
Wholesaling is a tough business! There's a lot of moving pieces when trying to move distressed properties and/or sellers.
My recommendation would be to partner up with a really experienced wholesaler. Find someone in your local market who moves a ton, go 50/50% with him or her on your next deal and let them manage the sticky situations and get through the barriers.
There's a lot of conflict resolution and creativity needed to close wholesale deals so a mentorship from someone crushing it in your local market would be life-saving.
@Ahmed Habib wholesaling works or there wouldn't be so many people doing it; I agree with some of the others; you need to approach sellers with a 'problem-solving' mentality; if you focus on helping the seller with their needs, you will have much better success. You can message me if you would like to discuss your strategies and how to get going—all the best, and much success Ahmed.
There are a few types of people who will buy your end of line flips….
1) Those that will only buy truly safe … battle born… “equity the day I buy”.. opportunities
And/or
2) those that were trained to see real estate investing as a much more risky “ investment”… in other words “ a buy that “SHOULD” have value after appreciation”
With Buyer group #1… if you provide truly investor grade deals that haven’t been stripped of most of the equity before you try to flip, you will build a following of investor grade buyers that WILL pay cash and CAN close “ as soon as the title search is done”… This will net smaller nets for you initially , but you will own a REAL Buyers list… that WILL have the experience… to REALLY CLOSE ASAP. And that will make your machine run MUCH more smoothly.
Or
2) you can initially max out your net on a few deals as you scape out most of the equity for yourself… but you will only be working with non experienced buyers.. who will buy ….one… realize that they are in WAY too deep… have no B plan.. and they will be FAR less likely to buy again… AND they may never even make it to your first closing .
So.. your choice… cultivate a crop of GREAT slam dunk , low work load real buyer investors…. where all you need to do is find the property , mark it up a LITTLE ..and we do all of the rest of the work…
Or sew a crop of weeds…
I do spend a little bit of my time asking wholesalers to take me off of their lists.
I would love to buy from you. I don’t want to spend my time doing the initial marketing. I am willing to pay for your value But I don’t buy properties that don’t have TWO exit strategies 1) enough equity AT CLOSING so that, at the very least I could sell it TODAY without taking a loss…..AND 2) after my expertise …. I can make my expected net..so that I can save for my family’s future. I don’t need to make a killing… I need to keep moving the ball foreward….
BOTH…1…AND…2… of the above..or no deal. The GURUS, The big wholesale & turnkey rental operations..AND the REIAs have all abandoned the above… ( although years ago this was ..THE… bedrock .. of REI… why would the REIAs stop advocating for the " minimum of two exit strategies"? The answer is right in front of you…
Examine the structure of any REIA and look who is on the Board of Directors AND..who the double tripple black diamond “supporters” are…. They are all of the gurus and wholes sale ops…
They FUND.. the REIA…so the REIAs feel that they can't advocate " no equity = no deal"…and the Boards of Directors… have ties to the big investor machines…
There ..ARE…. Members on the board with integrity… but on the boards…there are also sharks… a friends/associates of sharks.
Do I have absolutely proof? I’m not going to name names… and get sued and blacklisted…So…. no… but ….. just…look…
And…before you agree to buy your next property from any of these sources,
Explain that you want to see a Prelim Hud-1 / financial disclosure first. ….INCLUDING …ALL… COSTS, FEES , CONSULTING FEES.
You will likely get one of the two following responses.. 1) “ the hud 1 isn’t available”… if you are financing…..this is FALSE…the disclosure IS available..as it is one of the benchmark doc FOR the financing. Or.. 2) that wholesaler, guru, or turn key company says that they don’t want to do business with you… what they Actually just taught you.. is that you don’t want to do business with them.. OOOHHH.
OPTION THREE..
no problem Mr Buyer… here’s the Financial Disclosure… note line 36 near the bottom on the right column… there’s a “ consulting fee”… that’s my cost .
Hmmmm I know where I’m sending my business.
I would love to help build your financial future ..