What makes a property a good wholesale prospect? My first and shortest answer is that it has to show that it can make enough money to get a real estate investor’s attention – and even more to make it worthwhile for you, as the middleman.   Remember that the greatest risk belongs to whoever does the rehab and then either sells to the home buyer, or rents the property out. The rehabbing investor gets the greater share of the profits, often twice what the wholesaler will make.   Criteria #1 is to satisfy your target investor who will buy (or Read more…

I began wholesaling over 13 years ago, because I had too many properties at one time, and not enough crews to work them all. Some properties would have to wait several weeks before a crew could start – costing me money all the time.   In property investing,waiting drains the wallet with monthly carrying costs such as utilities, insurance,interest on loans, upkeep if a yard must be maintained, and even security measures. Money is going out by the double-handful, and nothing is coming in.   An equally important cost of waiting: I had put capital into each of them that Read more…

Real estate investing for rehabbing requires that you master a critical skill: determining the ARV, or the After-RepairValue, of a property. This number determines what purchase price you should offer`the seller to lock in your profit.   You can research the ARV before you know the contractor’s estimate, or your purchase price.Look outwardly at the market, and let comparables guide you toward the ARV.With the ARV in hand you will know how much this deal will earn after all the costs are paid out – rehab costs, selling costs, and all carrying costs.   Wholesalers especially must be able to Read more…

This month’s wholesaling theme will have you searching for real estate investors to take over projects you’ve found. These people will also be great contacts for future real estate investor sales, partnerships,and sources of great leads – so here are some tips on where the elusive real estate investors may be found.   Real estate investors aren’t that hard to find if you think about it – in fact, they are trying to find you, or at least your wholesale property that’s primed to make them money!Be out there in the space they hunt for such properties. Put together a Read more…

Selling your wholesale property to a real estate investor is about making this a deal that is hard to pass up. Your target investor may say they are all out of ready cash right now – but flipping is a cash-eating beast, so busy flippers are almost always lean on cash. But investors have to find their next deal somewhere. It’s about presenting them with a profit so good they will scrape, scratch, deal or steal the cash to close on your wholesale property. Show your target investor a firm, well-supported ARV (After-Repair Value, the market value once the house Read more…

If you are new to the term “wholesaling”, start by reading my blog post “Wholesaling – How To Make Money with No Cash”, and get acquainted with the basics of this great investing tool.   As I reviewed in the above linked post, wholesaling is an ideal entry point for new real estate investors because they can make money with little or no cash, as long as they will do the work and make good decisions. In comparison, buying to rehab and sell requires cash – cash for construction, utilities and other carrying costs, cash for selling costs and other Read more…

Are you eager to get into real estate investing – but broke and don’t know where to start? Are you an investor in need of fast cash for the next deal – but lending and other cash sources are temporarily tapped out? Here’s the way to make a quick few thousand, with a little knowledge, a lot of ambition, and some networking into the real estate investor community. It’s called wholesaling, and it’s the way to make sure you are in control of the deal, and you get paid fast. The best part: there is little or no need for Read more…

You’re reviewing a list of flip prospects, none yet visited in person. How do you tell now which have possible returns that are worth further an inspection, quotes and further research – and which are not worth your time?   On-the-fly calculations and/or ratios can be done by developing your own standard assumptions (and be prepared to completely change themas you delve into individual properties).   Example of standard assumptions Rehab/improvements: 25% of the purchase price (includes labor, materials, permits, everything spent directly on the property) If the above number is less than $20,000, use a minimum $20,000 (or $15,000 Read more…