Quote from @Guy Gimenez:
Quote from @Bruce Lynn:
@Guy Gimenez I went to an "investor" class a few months ago at a local title company that is "investor" friendly. Very interesting stat they mentioned that 70% of the wholesale deals that they get turned into title, don't close. That's just the ones that made it to title. Not the ones that fell out before getting to title.
I was pretty surprised, but then you think about it and maybe it is not all that surprising. They fall out for all kinds of reasons. Many probably due to the reasons you mention and I'm sure many due to title type issues wholesalers are just not prepared to solve.
That number has stuck with me. Disappointing as so many people out there just selling hopes and dreams, but really just wasting people's time and money at best, and at worst putting them in really bad circumstances.
I had no idea about the statistical fall-out rate but it's not surprising to me either. I consistently see assignors trying to "wholesale" retail deals. I attribute this to the gurus telling anyone with a pulse to "just take action", which is my opinion is the dumbest thing one can do. What if a police officer with next to no training just took action? What if a pre-med student just took action? And this industry is ripe for additional regulation because of this. I do understand that everyone should have a second income source but assignors don't understand that they're dealing with people's lives.
I don't know at this moment but it seems that a lot of these so-called gurus try to make everything really easy and a piece of cake to do. What I need to do is if I were to seriously put a deal, I may need to even work with lawyers and attorneys to draft good contracts if I were to seriously put entire deals together. Meaning what I should do is get a legal professional or a legal aid professional to set up a seller contract, buyer contract, a 50-50 commission contract if I were to work on a deal with a partner and more. I want to start in this area but at this point, I feel like this takes a lot more planning then what these so-called "gurus" claim to present.
