The Art of Wholesaling

Steven and I were just discussing some of the crazy deals we see wholesalers offering.

Do they think other investors are just plain ignorant, or are they?

For instance, one wholesaler recently offered a 1910 house via rehablist.com. Now, this is the type of house that makes me drool!!!! So I paid close attention to this deal. He was offering the house for $129k, and just said it needed repairs but did not list them. He then said it had tenants in it so just drive by, then make an appt.

When I looked up the house on the Davidson County tax site, it was apparaised there for about 90k. Later, while persuing the MLS just to see what was there, I came across this very same house listed for $135k!!!! I guess he made just a low enough offer to get them to put it under contract with him. But it is still on the MLS, so I am assuming this wholesaler did not find a buyer for this great...ahem...deal! Presumably he used a weasel clause to back out when he could not find a buyer.

It COULD be a great deal if you could negotiate a much, much lower price because it is in a neighborhood that is just starting to be rehabbed, and is on the edge of another hot rehab neighborhood where homes are selling for $250k on up. But right now, $129k is not going to cut it with this house in a neighborhood that is still marginal. And I doubt the seller is going to find anyone who will buy it at the price they are asking anytime soon. Unless it is someone who wants to rehab it for their own personal use, live in it a few years, then sell for a nice profit.

Another wholesaler listed a house in a historic area of Nashville on craigslist yesterday. He did not give the specific address so I could not look it up on the tax site. However, he is offering it for $160k, said the kitchen and bath need updating and it needs other work (which he did not list but said it is livable), and said that it could sell for $175k! Wow! What a profit margin, huh? Maaaaybe one could update it, sell it, and perhaps make a couple grand!

Steven is a member of several online investor groups and says he sees these type "deals" being offered all over the country.

Bottom line: this is a perfect reason for new investors to have an experienced mentor and coach like David to help you cut through the C... and not make a costly mistake!

AND to teach you the art of living with integrity and negotiating with the motivated seller so you can offer GREAT wholesale deals where everyone makes money!