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Updated almost 8 years ago, 01/11/2017
Better Wholesaling Strategy
I am not a wholesaler or a beginner investor but I do think i have abetter strategy for wholesaling and would like your input.
I am very familiar how wholesaling works, I have never wholesale but I have purchase deals from wholesalers. This strategy implies to the New York and New Jersey Market, every market is different and these two are the only ones i know and can speak off. You do need capital to make this work but loans can also be done.
SOLUTION: Why not just purchase the deal yourself and sell it after close? post it up on the MLS for a one time fee (On my flip properties I paid that one time MLS fee and saved 3% by eliminating the listing agent) the MLS will get you max exposure bidding wars which would maximize your profit in comparing to just selling to a group of buyers in a buyers list. This method would have you close on the property in 1-2 weeks max rather than 30 days if your buyer has to use a hard money loan or going through the re-assigning contracts of other investors.
Wholesaling is not an easy job and alot of drama and games are played behind the scene and many deals have falling apart because of it. I believe that if a wholesaler purchases the off market deal or even an auction deal, he/she could eliminated all the stress and games involve and just re-sell fast. Technically this is consider flipping but your not doing any renovation so I call it hybrid flipping. The flaw you have to pay closing cost and capital gains but the better profit makes up for it and wholesalers do pay self employment tax because they get issue a 1099-tax form so its almost even.
Whats your opinion on this?