Real Estate Investing by Wholesaling: Working Your Buyers For Big Profits!
Buyers are the key component in a wholesaler's big payday. You MUST be able to relate
to and establish a very strong relationship with your buyers in order to consistently wholesale deals.
* If you have a property under contract and you're wholesaling it, then do you have the owner's permission and access to the property at your discretion?
* If the property is a MLS listed property, what type of arrangements have you made to gain access into the property (such as a lockbox)?
When it comes down to wholesaling there are a few rules of thumb with probably an exception to each rule. First off is that
A critical element with your buyers is necessary when it comes to wholesaling and that is this...."how do you get your buyers
in the property when you don't own the property?".
Put yourself in someone else's shoes when it comes to buying an investment property. You should be conducting inspections and repair estimates on:
* Roof
* Painting needed
* Carpeting
* Plumbing, heating, AC status
* Termite inspection
* etc.........
See, in order for you to wholesale a property your buyer, most of the time, will want to inspect the inside of the house. Now you not actually owning the house can become an issue:
* If you have a property under contract and you're wholesaling it, then do you have the owner's permission and access to the property at your discretion?
* If the property is a MLS listed property, what type of arrangements have you made to gain access into the property (such as a lockbox)?
When it comes down to wholesaling there are a few rules of thumb with probably an exception to each rule. First off is that... I wholesale well over 90% of my deals from INDEPENDENT sellers. Independent sellers just have a lot more flexibility when it comes to gaining access to the property to show your
buyer the inside so they can verify it's a great deal.
In my contracts I simply state, "Buyer shall provide seller a key to access property at his convenience". If that is a problem with the buyer then I'm probably not dealing with a
truly motivated seller to begin with and I don't change my methods.
Let me play devil's advocate here and when it comes to wholesaling MLS properties it can become a bit more complicated. If you've got a great deal that involves a Realtor listed
property, then how are you going to get your buyer into the property? Slim to no chance that you can put that previous access clause in there and get it to pass. There are just
too many liabilities on the part of the Realtor.
Now, if you're being up front with a Realtor (as you should) and just quite frankly state that you can move the property with a group of investors you work with then it's feasible.
You just will need a Realtor that will schedule appointment(s) at the property to let your buyers look at it.
If you're not the listing Realtor then lockbox combinations and access should not be given to you on a legal and ethical basis. I mean if it were your property, would you want some-
one else having access without your knowledge? What if a backdoor was left opened and the place vandalized?
Hopefully you are starting to get the picture on a Realtor listed property that wholesaling these at times can be a little more difficult, but not impossible. Also you need to realize that if its a truly great deal to begin with you won't
have to "show" more than once or twice to quality buyers as they will see the true value and service you provide as a wholesaler.
Just know that in wholesaling you need to think ahead of how you will deal with the situation of getting your buyer in the house. When you can implement some of these tips I've shared with you here then you're one step closer to getting that check with your name on it!
Good hunting as luck has absolutely nothing to do with it!
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