Posts tagged "simultaneous close"

A Primer On Real Estate Wholesaling

real estate wholesalingReal estate wholesaling is the process of buying a piece of property at a very low price, marking the price up slightly, then turning around reselling it to a retail buyer, who will then rehabilitate and/or stabilize the property and realize the bulk of the upside value.

The beauty of wholesaling real estate, is that your profits are cash, and they come to you quickly; within a week or two. The sellers wholesalers deal with are highly motivated to sell, making buying at very low prices possible, and the investors they sell to come to the closing table with cash, be it their own cash, or from a line of credit or rehab loan.

In the world of real estate wholesaling, “price” is the central issue. If you can buy a property cheap enough, no matter what it’s flaws there will always be a buyer for it. Also, the lower the price, the more demand there is for a deal and the more the wholesaler can demand payment in cash with no contingencies.

Possible Risks And How To Deal With Them

If you are wholesaling properly you are buying at low enough prices that, even with your profit added on, the price you are reselling for still gets investors greed glands pumping and they are falling over each other to take the deal off your hands.

The only risk you face wholesaling is when you are unable to resell the property because you paid too much to the seller and no investors want to buy.

When you put a property under contract you always have an inspection contingency, so if you haven’t found a buyer by the end of the inspection period you can give notice you don’t approve the condition of the property and the contract is null and void. Any earnest money binding the contract is returned to you as long as you have given notice before the expiration of the contingency.

Finding Deals To Wholesale

The key to achieving low price is marketing; 1) targeting sellers who are motivated and most likely to sell cheap in order to get a quick cash sale, 2) making offers to those sellers, and 3) following up with offers until their properties are sold, either to you or  someone else. The secret to wholesaling lies in numbers, and creating high lead flow, and making a lot of offers. Read more…

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Posted by Ben - August 5, 2014 at 2:00 pm

Categories: Apartment Investing   Tags: , , , , , , ,

Teaming Up And Co-Wholesaling Apartment Buildings

co-wholeslaingWholesaling apartment buildings is an amazing opportunity. You leverage multi million dollar transaction values, slice off five and six figure assignment fees, all without taking any risk or using any of your own money.

In the early stages though, there is a lot to get your head around. In the world of project management, it’s well established that if you have to learn more than one new skill during the course of executing a project, your chances of successful completion start to go down.

This is definitely the case with apartment wholesaling, and it illustrates quite neatly why the first deal is the hardest deal to do. You are learning how to find deals, how to negotiate with sellers, you are learning how to raise private money, you are learning how to qualify buyers, and shepherd them through the closing process, all the while dealing with your own fears and maintaining a “can-do” mindset.

When you look at this way, it’s not a surprise that, most people struggle getting their first apartment deal done. There are a lot of firsts you have to achieve, and an unforgiving time frame in which to achieve them.

One way to lower the bar though, and increase your overall chances of succeeding, is to break the doing of the deal down into separate parts, and assign the accountability for producing a result in each part to another person. This can be a partner, someone in your network, it can be another Apartment Entrepreneur.

Read more…

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Posted by Ben - February 24, 2014 at 3:44 pm

Categories: Apartment Investing   Tags: , , , ,