Strategy Overhaul

[DaVon Brooks]

Hello guys, 
 
I'm returning to the drawing board and revamping my REI strategy. I have decided to move along in phases with wholesaling and rehab as my first option for breaking into the market, then integrating a Buy and Hold strategy to set-up long term income.

Who in Nashville or surrounding areas has had success with Wholesale? I'm obsessed with the concept and have done the opening leg work for several deals but none have gone to close, that's a 0% conversion and I want to rework my model. 

Opinions on the Nashville market for rehabs? Next best area to be looking? 

What're your best tools for evaluating a/the market?

I'm very willing to assist in anyway shape in order to get the experience that I need to work this career.

[Chris Piper]

@DaVon Brooks I'm not sure how many wholesale deals you've gotten into and not closed on, but it should be a rare thing to NOT close ona deal, not the norm. The area where you are trying to wholesale really doesn't matter. You can make money in any market really. Use list source and pull a partial list of zips in your area where cash buyers are buying(absentee owners). Then, buy in the areas with the highest number of properties in those zips.

It sounds like you might be missing something in the wholesale process if deals aren't closing. You might be selling to high, you might have deals that cash buyers don't want, (buying the wrong deals), your rehab costs could be off, etc. 

There are three main components to being successful in wholesaling:

1. Buy at the right price

2. Get accurate and current comps

3. Have accurate repair costs

If even one of those 3 things are off, you won't close the deal or deals. 

Here is the process in a nutshell:

1. Find an OFFLINE deal from a motivated seller. Not a property listed in the MLS.

2. Do a walk through of the property and figure out your repair costs.

3. Pull at least 3 comps similar to the subject property within the last 3-6 months that have sold. Only use SOLD properties, pending or listed properties don't count.

4. Run your numbers and see if it's a good deal. If so, make an offer. If not, move on to the next deal.

5. Sign a purchase agreement with the seller.

6. Find a cash buyer ASAP! If no buyer within 1 week, drop the price. If no buyer within 2 weeks, call every wholesaler(We Buy Houses) in your area and see if they want to JV the deal with you(split it for bringing in a buyer).

7. Sign an assignment contract with a cash buyer and collect a non-refundable $2k minimum deposit from the cash buyer.

8. Close and get paid.