Instant Cash Wholesaling Houses!---Part II
What about that earnest money of $500 or more that a Realtor is going to require? What if you are going to be able to close on the deal in the time frame of contract? What are you going to do if your wholesale buyer needs help with financing?
My point listed above with Realtors is they are a great source for wholesale deals, but my friend that is just the “tip of the iceberg”! There are more opportunities out there with independent sellers than with MLS properties where hundreds of other investors are snatching up the deals the minute they hit the system. Unless you’re a Realtor tied to the pulse of the MLS system and realistically have an “inside” line to deals coming across then your ability to consistently wholesale deals is by no means impossible but rather limited.
Now that I’ve hopefully steered you into a mentality thinking of finding those deals we need to revisit the “why” of wholesaling houses and that is CASH! With cash deposited in your bank account you can pay your bills and expenses just like the next person. So many times I will come into and counsel investors that drop their corporate job like a hot potato just knowing in their heart they have found their niche in real estate investing. While that may be so true, they will focus on rehabs taking months to complete for the big payday or gather some subject-to deals making a monthly spread but it is still a ways down the road before their buyer qualifies for that loan payoff making a five-figure payday.
I am sure there are investors contrary to what I have stated above that right from the start they do what I call “hit the home-run deals” on those big paydays. For the other 99% of investors in the “real world” you first must solve your cash flow personal needs before progressing. Shall we say walk before you can run?
Why I think wholesaling will get you as an investor quicker there than any other means in real estate is in this example. With a wholesaling deal you should make on the AVERAGE anywhere from $3,000-$5,000. That will equate to what would be upwards of needing 20-30 rent-income producing properties possibly on a monthly basis to cashflow to that amount and you just now made it off just one wholesale deal----and that is if all paid their rent on time! What if you can (yes, you can!) multiply that to 5-8 deals or more a month? Now you have significant disposable income to take care of your personal needs, weather deals that may not be cashflowing, and let you focus on your real estate business without panic on deals such as rehabs that take a while to come to fruition.
If there were only one all-encompassing manual on how to become a truly successfully real estate investor, then after the table of contents you would find the first chapter on CASHFLOW! Cashflow literally is the keys to the kingdom in successful real estate investing. I hope you will use wholesaling houses to get you there cutting as much of the learning curve off as possible. Good hunting as luck has absolutely nothing to do with it.
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