Two life lessons about wholesaling.

[Account Closed]

Two life lessons I am constantly reminded of when I am wholesaling is to (1) not count your chickens before they hatch and to (2)  not put all of your eggs in one basket.  

When you are selling off market properties, especially when you are seeking an assignment fee, many things can go wrong and deals fall through more often than you might think.  Because of this, it is wise to have another stream of income other than your assignment fees.

[Hattie Dizmond]

Greedy wholesalers make wholesaling difficult for the rest of us, just like bad wholesalers do. I just explained to a newbie yesterday that - in my opinion - the assignment fee should be based upon a % of the investor buyer's estimated net profit, not on the purchase price or ARV.

If I look at my deals from that perspective, then my success is intrinsically tied to my buyer's success. I try to keep my buyer's at or above 20% ROI (that's net of their total projected investment), after the wholesale fee. I haven't found a single buyer, who making a net 20% ROI cares for even a nanosecond how much my assignment fee was!