The New Rules of Wholesaling For 2013

 

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Today’s market is a different than the market of a couple of years ago. Gone are the good old days of just walking into a bank and getting a loan with just a handshake. Wholesalers and real estate investors alike have to rely on creative strategies in order to buy and sell properties.

 

Always disclose what you intend to make. I see and hear about this all the time from wholesalers and rehabbers, “the other guy was dishonest and I only made 5k while he made 50k on this deal”. While I personally think this is nothing more than a scarcity mentality I feel that you should always be upfront as possible.

 

Listing Repair Costs. Would you tell a doctor how to do his job? No, well then why are you telling someone what THEIR repair costs will be? I know wholesalers tend to give over inflated ARVs, and sometimes low unrealistic repair costs. Hey let’s face it, we all make mistakes, but if you honestly don’t know its better not to include the repair cost. Especially when giving the details about a particular deal. I always include an asterisk behind my repair costs and let everyone know it’s an estimate.
 

ARV’s Are Dead. It’s not that people don’t care about ARV’s anymore it’s just that a lot of investors don’t use them.  What investors are looking for nowadays is a better deal than what they had before. Not just something that is below 70% ARV.

 

Mutal funds.  We’ve all heard time and time again how these big mutual funds are coming into the market and buying up all the properties.  What the media won’t tell you is that most of these mutual funds just target pretty houses and they don’t deal with the shacks in the hood.  Even with a bunch of mutual funds coming into the market investors can still make a pretty decent living by and flipping properties. Hey there are enough deals for everyone ok.