Lets get right down to it -
If you're wholesaling in this 2013 market - you best be a badass !
Low rates and - despite the hype, there's lots of inventory out there.
Granted - markets are improving.
So many foreclosures and short sales, over the last 5 years, have taken their toll.
YES !! Things will improve and are, already, heading in the right direction.
BUT - it still aint right out there - at least as far as "wholesaling" is concerned.
Rates are at, or near, historical lows AND so many people are happy to be able to, actually, sell their homes !
That said - many sellers are getting multiple offers/up-bids on their properties.
Wholesaling, traditionally, works in ANY market - but this market is a hybrid.
There's so many factors that have, previously, made it difficult to sell, even, cut-throat inventory (REO/Short sales) that would be considered "NO BRAINERS " !!
That has changed - for now.
I have, successfully, wholesaled - but market changes have presented numerous challenges to a successful wholesale flip !
For this, current, 2013 market - I recommend you use short term/transactional funding.
DO NOT use ANY transactional funding that is in excess of 1.75% - or you're an idiot that needs to have your ass beaten down !!
Secure the property, 1st, then sell.
Look at the basics of wholesaling.
Everyone knows you have a contract on the property you're wholesaling.
Your "Buyers" know you have to flip that paper too - and some are smart enough to know they can wait your sorry ass OUT !!
Informed buyers know that your contract has an expiration date.
So, the best a wholesaler can hope for, in this - current - market, is to get a 1st time buyer and/or someone who wants the property bad enough, that they're willing to accept your assignment of contract.
While some may opt to wait you out, some might realize that someone else might accept your terms, or - even - go directly to the seller and edge you out of the deal.
Yes - edge your sad and broken ass out of the deal, and it happens all the time in markets like NOW.
If I'm discouraging you from wholesaling, it's cool - because - IF you're a badass, you're doing your homework and ONLY you will know if wholesaling, in THIS market, will work for you.
Whatever your direction - MUCH success to you !!
Trends - gotta love em.
When it comes to a struggling real estate market - CASH IS KING and the deals are what many investors ALWAYS dreamed about, but NEVER thought they could have.
So, on the MLS, or not - there's a glut of inventory and many of these sellers want these properties gone - NOW !!
However - BUYER BEWARE - because we're still in a declining market, overall.
Unemployment is up - gobal issues, blah, blah, blah....right ??
What's an investor to do ??
Worry about the fact that FMAC absolutely NEEDS another 1.8 BILLION, over the BILLIONS they've already received in bailout funds ??
Don't worry - despite the fact that your tax $$ will pay for their next bailout (which SUCKS !!), consider what you CAN DO to contribute to YOUR OWN SUCCESS.
Check out our homebrew.....:
STEP 1: Add all cash offers (DON'T BS - Actually have the cash)
STEP 2: To all your offers
STEP 3: Allow sufficient time for seller's review.......
STEP 4: ...But not so much time as to allow for other offers from other buyers
STEP 5: DO as you promised/offered - or don't do it at all.
That's our recipe and it ALWAYS works for us - though we don't get every property we offer to purchase.
The point I really want to make clear is - DON'T LIE -
If you don't have the CASH TO MAKE CASH OFFERS, don't make em !
OR - Be damn sure YOU CAN DO AS YOU SAY - because bad news travels faster than good news AND, if you're not doing as you promise - YOU'RE BAD NEWS !!
There's a multitude of ways to find cash buyers.
Find a mentor (Did I mention that WE'RE MENTORS ?) - do some deals and earn your wings !!
Real estate investing is a great business, NOT an easy business.
Be careful out there !!
At mikcohen.com - we enjoy sharing insights, helpful tips and specific information. Feel free to comment and share your knowledge and experience, but please keep it respectful.