Wholesalers Can Leverage Hard Money To Do More Deals

Wholesaling in Philadelphia or any part of the country is a fantastic way to make living. More importantly, I always recommend to people that are starting to start wholesaling. There are a lot of reasons to start there, but one of the most important is because you will truly learn how to spot and find deals in your market with very little risk involved. Wholesalers are an integral part of the investing world so all flippers and landlords should know as many as they can in their given market.

For wholesalers looking to do more deals, there are a few things that can be done. One simple and immediate way is to leverage your hard money lenders. We love helping wholesalers close deals with borrowers. Sometimes a wholesaler will call and say ' I have a borrower that is liquid up to about $30,000 and wants to buy the deal, can you help?'. Our answer is 'Yes' many times. Because we close in 5 days, the wholesalers never feel concerned about financing issues. Now what has happened is a non-cash buyer just became a buyer by using our money. The wholesaler was able to move a deal that they otherwise might have been stuck with. The other option is when a wholesaler has a buyer that has roughly $100,000 in the bank and is limited to only 1 deal at a time. That $100,000 is roughly equal to $500,000 of our money. Now, the wholesaler can move 5x the amount of deals to that same borrower based on the leverage that our money provides.

Wholesalers should always look to team up with hard money lenders in their market. Investors should team up with both wholesalers and hard money lenders. There is a lot of business to be done between the three parties involved so get creative and make the connections.

Ian Walsh