This is my first article. This is my first article. I am still catching up on the internet. I was a professional golfer for most of my adult life. However, I have been an active wholesaler and real estate investor for 22 years.
Over 200 houses were purchased during that time. Many of these homes were flipped by other investors or rehabbers, and I made an easy and quick profit. Many homes I have kept to rehab or retail, and some I retained for long-term wealth.
I’ve used many different exit strategies to buy houses. Lease options, owner financing and rental properties are all possible. It’s the best thing about being professional wholesaler of real estate. This gives me many choices when it comes to property I’ve bought at huge discounts. The property can be rented out to make it a rental income. It has great equity, and is less affected by real estate downturns.
It is rare that I will deal with foreclosed properties. Most cases have very little equity. I do not look for very little cash flow to a house. It is too hard to manage a rental property. There are too many legal issues and people to manage. Even though I don’t like the hustle and feel unaffected by the market, if my house has 25-50 percent equity, it is fine. I could flip a contract for a house to make more than what 20 rental homes will give me. In a single month, I could flip five houses. This is far better than broken hot water heaters or leaking roofs.
Over one-and-a-half years have passed in the development of my education information, which is now available online.
Dallas, Texas: I am a strong advertiser for sellers who are motivated in the Dallas/Ft.Worth metroplex. Many people call me every day, even though they don’t want to sell their house. Many of these calls are coming from individuals who attended costly Wholesaling trainings from leading business gurus. These are people who have some business knowledge but not enough mentoring. My business is not for everyone. Most of these people remain lost. These people don’t know where to turn. Although they seem to understand the basics of wholesaling, they are unable to put them all together. The lack of experience and training required to apply exit strategies. No mentoring. It will not cost them anything if they get mentorship. They seem to be thrown together.
They all seem to believe that the wholesale price of real estate should be 65 percent less than its retail value. Next, they will need to find an investor or rehabber willing to buy the contract for 65 per cent of the retail price minus any repairs made and your fee.
Example: Home value of $100,00.00 x.65% equals $65,000.00. Repairs cost $25,000.00. Assignment fee is $5000.00. What do you offer to the seller = $35,000.00
We wish you all the best!
Although I think you should always try to buy a home at a reasonable price, most homeowners will not sell their house that quickly. This is the place most callers go. There is no contract for a home. You will not be charged an assignment fee nor pay any living costs. If you are able to convince the seller, this is an excellent example. Most sellers won’t. It is here that I can see their lack of knowledge and the training they received. This group of guru-educated students doesn’t know what to do. No negotiating skills.
There were many homes that wholesalers offered on but couldn’t secure because of this 65 percent rule they have been taught. It doesn’t work every time.
It is my preference to pay the seller less for his house and offer the investor a higher percentage of returns. Investors that aren’t strictly following the 65-percent rule in rehabbing a house don’t apply it to me.
The above example shows why an investor should always earn 35 percent on a deal. It is not my intention to make investors wealthy. They will be able to make a profit for the 60-90 days that they spend on rehab. The seller and I were the ones who found the house. The investor is doomed without these. It would be a great return for investors if they made 20 percent profit in such a short amount of time. Do you know of any places where I could make a 20 percent return? You can’t. They can also get tax advantages if they understand the process.
If you can find investors willing to accept a reasonable profit margin, then more houses will be contracted. It is my guarantee.
People who are really trying to learn about our industry aren’t being taught the right way. This is like them being trained by government officials. This mindset will not help you achieve your goals.
Negotiation is essential. Negotiate with sellers and buyers. We are in negotiations, not lost in fog.