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Duh! Winning! 5 Tips All Wholesalers Need to Know!

Duh! Winning! 5 Tips All Wholesalers Need to Know!

Lets get straight to the point. We have had some rough experiences with many wholesalers in the last few months. Too many are missing the mark when it comes to pricing and actual KNOWLEDGE of our city. We receive emails everyday, or almost, about new deals throughout the city. Many of the properties we see are NOT wholesale deals!! The frustration from both our team and our cash buyers have led us to make this quick blog about what wholesalers need to know regarding this business, in this market. Read along.

1. Wholesaling is about PROPERTIES and PRICES! – Regardless of how many months you have negotiated a deal, it always comes down to prices. A wholesaler can be the coolest ol’ G on the planet, but the deals and the numbers is what will move a property. Do not take anything personal. If a buyer or another wholesaler try to give you advice on the price, take it to heart and work with it. We all want to make money and get to another level investing in real estate, but it can only be done with patience and humility.

2. COMPS are KEY! – Information is what makes a deal sell. Anytime you get a property under contract and you want to label it a “wholesale deal”, but you fail to give proper comps, consider yourself unreliable. Nothing can kill your credibility more then having unreliable comps. For instance, we received a property email with numerous asking prices. The wholesaler actually used comps from 2 miles away, AND from completely different style properties! Big NO NO! I mean, the idea here is to SELL the deals, not KILL your cred! After talking with other buyers and brokers, it turns out that this is VERY rampant among us wholesalers. We have to do a better job of getting properties with proper comps.  If there are NO comps in the area, that means the property is a RENTAL and not a flip! In this scenario, use the RENTS to show the value of a home.

3. REO’s set the PRICE! – There are so many REO’s in Chicago that you do not have to guess what a investor is looking to pay for a property. Also, if the block you are looking at has a lot of REO’s, you must do your best to get as close to the average REO price as possible. The fact is, no investor will pay 20K above regular REO price in a low income block because chances are, there are plenty properties in the surrounding area to pick up for less. The 20K saved on NOT buying your overpriced deal can be used to rehab a rental property or fix up a home. However, there are situations where this may not apply, such as higher end neighborhoods. These neighborhoods sell themselves and many REO’s are selling a tad under what the market value in the area may be, that’s it.

4. Rehabbing to Fix Vs Rehabbing to SELL! – This is for any wholesaler who is working the middle to lower income neighborhoods. When looking at a property, know whether it is a rental or a rehab and flip opportunity. A little bit of research will tell you what would be the best strategy. In any event, many wholesalers are asking really HIGH prices on houses and estimating the cost of repairs too low. Every single cash buyer who we have worked with has told us that NO MATTER what condition the property is in, it will still get a MINIMUM of 20K in work done, MINIMUM! The reason is that the competition for the limited buyers out there is getting tough.  Today’s home buyer has many options, one being a short sale and the other being a rehabbed house.  Short sales are sitting on the market too long and do NOT have the bells and whistles a rehab project does. Any SMART investor will see this and require a REO-like price on a property, no matter what condition it is in!

5. Stop Lazy Wholesaling! – Yes, it is OK to work with other wholesalers on deals, that is not what we are talking about. We are talking about the people who find deals off websites, tack on a ridiculous fee and say its their property. Um. no. We have had many out of state “wholesalers”, send us properties we can find on our on with a click of a mouse. This shows a lack of effort and it does not give you any value. If a wholesaler does not control the deal, just let others know, its OK, but pretending its YOUR deal when it’s not, definitely takes away from your value.

Hope this helps, let us know what you think!

6 thoughts on “Duh! Winning! 5 Tips All Wholesalers Need to Know!”

  1. I looked around a LOT to find a good wholesaler int eh Chicago area after a newbie investor came to me (in California) with a property in the Chicago area. They needed help getting it out to buyers. Well, not only is RJ a great guy to talk to who really knows his ground/market/deal points, he is also the real deal in wholesaling and I think probably tops in Chicago. I’ll have to start looking for more Chicago deals so I can work with RJ again!

  2. Wanted to reach out to you, see if this resource could be of need for you or clients wanting to close more transactions.

    I am with a private equity real estate group out of Salt Lake City. We provide short term, bridge money / private capital to real estate borrowers who need to close quick on their transaction, so they can begin moving forward on the project, etc.

    On many occasions we provide the private financing for many short-sales, fix & flip, foreclosures, buy-sell, short-term refi’s, wholesales, and so forth. We lend on residential and commercial, and can close within 24 hours or less.

    If this is something that could fit your piece of the puzzle, please contact us! We would love to extend our business to your area.

    Here’s to success for us all! Take care.

    – Jeremy Finlay
    Aclaime Group, LLC
    Salt Lake City, Utah

  3. R.J. Cid is the first Chicago wholesaler whose name comes to my mind when I have properties to sell in the Windy City! Though I also have a huge Cash Buyers list for the Chicago area.

    I look forward to doing as many deals with RJ Cid as I can! Why? RJ made himself easy for me to FIND online!
    I found him on Facebook and YouTube. Which tells me that he is a SMART Marketer!

    My main markets are: Austin-Houston-Dallas-San Antonio; Orlando-Tampa-Lakeland,Florida;
    Atlanta, Youngstown-Warren, Ohio; Philly, Portland, Oregon; Grand Rapids, Michigan…

    And, I also have connections in Your Town…

    “darryl411”
    http://Twitter.com/phlander

    Austin, Texas

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Becoming a Wholesaler: 90 Day Update

Well, it looks like Jae is coming up in the wholesaling world. He has learned what he needs to do and is very honest about it. He is setting his sights on getting deals done and reaching out to the connections he’s made. The journey is what matters and it looks like Jae has a great head on his shoulders and there is NO doubt that he can achieve his goals no matter what business he is in.

Let us know what you think about Jae and his journey so far!! Comment below!