Hey everyone. I wanted to share some thoughts on the topic of wholesaling.
I have a bit of a love-hate relationship with the world of wholesaling. This is mainly because, while wholesaling can serve a useful purpose in the real estate world, it can turn into a slippery slope when it comes to maintaining integrity.
Wholesaling often includes 2 components: (1) Getting something under contract for under market value and then (2) exiting out of the deal without closing on the property. In this scenario, the wholesaler makes his/her money in the spread between the offer price to the property owner and the purchase price set up with the investor.
And it’s in the first point above where things can get slippery.
In order to get a real estate holding under contract for under market value, the wholesaler often has to seek out sellers who are in a distressed situation. Maybe they have medical bills to pay. Maybe they’ve lost their job and they need cash quickly. Whatever the case, for the “average” wholesaler to make money, he/she has to seek out and capitalize on these distressed sellers.
Now I’ll say this again: wholesaling in itself serves a purpose in the market. A distressed seller may be very eager to take a hit on the value of their property in order to get cash quickly. But I’ve spoken with a lot of wholesalers and that is commonly one of the main areas of the strategy where they struggle.
Our strategy in land deals, which we teach in our coaching program, Land Deals Revealed, shares a common point with home wholesalers: We put residential land deals together where we don’t need to provide the funds necessary for closing on the property and funding the construction of the subdivision.
But a big difference is that we don’t need to go out and find distressed sellers. We don’t need to put deals together at under market value. Our strategy allows us to put deals together at full market value and still make 5 to 7-figure returns.
There are many other differences between what we do, compared to the typical “wholesaling” deal, especially when it comes to exit strategies. But the “slippery” factor is removed by fact that we don’t need to go out and find deals at 30 cents on the dollar.
If you’d like to learn more about how we do this, check out our video presentation here.
Posted by Cody Bjugan – VESTRIGHT on Tuesday, September 8, 2020
Hey everyone. I wanted to share some thoughts on the topic of wholesaling.
I have a bit of a love-hate relationship with the world of wholesaling. This is mainly because, while wholesaling can serve a useful purpose in the real estate world, it can turn into a slippery slope when it comes to maintaining integrity.
Wholesaling often includes 2 components: (1) Getting something under contract for under market value and then (2) exiting out of the deal without closing on the property. In this scenario, the wholesaler makes his/her money in the spread between the offer price to the property owner and the purchase price set up with the investor.
And it’s in the first point above where things can get slippery.
In order to get a real estate holding under contract for under market value, the wholesaler often has to seek out sellers who are in a distressed situation. Maybe they have medical bills to pay. Maybe they’ve lost their job and they need cash quickly. Whatever the case, for the “average” wholesaler to make money, he/she has to seek out and capitalize on these distressed sellers.
Now I’ll say this again: wholesaling in itself serves a purpose in the market. A distressed seller may be very eager to take a hit on the value of their property in order to get cash quickly. But I’ve spoken with a lot of wholesalers and that is commonly one of the main areas of the strategy where they struggle.
Our strategy in land deals, which we teach in our coaching program, Land Deals Revealed, shares a common point with home wholesalers: We put residential land deals together where we don’t need to provide the funds necessary for closing on the property and funding the construction of the subdivision.
But a big difference is that we don’t need to go out and find distressed sellers. We don’t need to put deals together at under market value. Our strategy allows us to put deals together at full market value and still make 5 to 7-figure returns.
There are many other differences between what we do, compared to the typical “wholesaling” deal, especially when it comes to exit strategies. But the “slippery” factor is removed by fact that we don’t need to go out and find deals at 30 cents on the dollar.
If you’d like to learn more about how we do this, check out our video presentation here.
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