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.
Wholesaling is all about the buy-in price. Whatever the ARV, if the buy-in is low enough and the profits are high enough, someone wants to do this project.
Property problems can be solved with money, and there has to be enough of a spread between the buy-in and the cash-out to fix everything, with enough left over to make it worthwhile.
Think not just in terms of rehab solutions and the market value – think in terms of profit! Work that margin and present it on a silver platter to real estate investors hunting their next deal, and you’ll move your wholesale property quickly and make your own money doing it!
What is your target profit margin in a real estate deal, as either a percentage or a dollar value?
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