Challenging Market For Wholesaling Real Estate ? by Mik Cohen

Think it's hard to wholesale real estate in this 2012 market ?
Well, it's not - IF you have the right deal - but isn't that always the case - regardless of the "current" market ?

Here's the deal, man.
Someone who knows their market, well, can easily benefit from buying a property from a knowledgeable real estate wholesaler - like you.

Question is, are you a competent real estate wholesaler ?
Here's a way to answer that question:

Do you know your chosen market(s) well ?
Do you have viable/assignable contracts  ? - 

What do I mean by viable ?

You have a market where a majority of 3 bedroom/2 bath homes, on a quarter acre lot, are selling for 295K - all day, every day.
These homes are on the market for, an average of, 45 days - and there's 2 to 5 SOLD comps - within the last 45 days, within a quarter mile of your subject property.

What makes your deal, especially, sweet is that you have your wholesale property, under contract, for 210K - and it's in better shape than 2 of the comps you're using in your presentation to your buyer (You ARE showing your - potential - buyers comps, RIGHT ??).

Your issue is that you have a limited amount of time to flip, or sell/assign, that contract, before your time runs out - contractually speaking.

You're fine, because you have a great contract/purchase price, RIGHT ? 

You already know, by the flow of this blog, that your assignable contract price is not enough - and if you don't have any escape clauses, you're probably an idiot - unless you're of the fortunate few that can, and will, buy that wholesale masterpiece - should your contract require, if you're unable to assign that contract within the amount of time that's, mutually, agreed upon in the terms of your contract. 

Ok, before you decide that you're an idiot, you do have enough time - per that assignable contract (You did make the contract assignable, RIGHT ?), to market, MARKET MARKET your exclusive AND assignable purchase price.

So, you advertise in ALL the LOCAL media that's focused on the area where your wholesale flip resides -and you have bandit signs and flyers - posted at any/all local businesses too.

As a sidenote, you also made sure that the seller, completely, understands that you'll be seeking a partner/investor who will "fund" the purchase price.

While you don't have to spend alot of time focused on this fact (in fact, you should NOT spend too much time explaining this fact - as you may put the seller off), it's best you make it a focal point, as you'll be needing to show your, perspective, buyers/assignees - first hand, the exclusive opportunity they have and IF that subject property is occupied by anyone, or is secured, you'll need the seller/seller's agent, to open that property every time you need to show it.

In my world, I believe in buying the wholesale properties I secure.
Why ? Because a great deal is a great deal AND if I can't assign the property, within my contracted time frame, then it's a minor error on my part - IF I know what I'm doing.

What the hell am I trying to say ??

Pay attention to your, chosen, markets.
If you contract to purchase a "wholesale" property - you need to be sure the purchase price matches the condition of the property with an, additional, GENEROUS discount.

Making your 5K+, per assigned deal, will be ensured IF you have a, undisputably, great price AND an effective marketing plan.

Also - the only, TRUE way to build your buyer's list is to, actually, get a property under assignable contract and market  - 

If that deal is everything you believe it to be, and you're marketing the living shizz out of it - you'll find your buyer(s).

Go get em !!   

Mik Cohen
New To You RE, LLC