Why Does Everyone Want to Become a Wholesaler? – Part TwoPosted on August 1, 2015 by
This month I believe what I will be sharing with you can be very important to you financially as well as to build your financial freedom faster and easier. Last month I questioned why all of the so-called Guru’s are pitching how everyone should be wholesaling properties to build wealth. From my own experience as I said last month, if all you do is wholesale deals you have a job. This month I want to explain what I have experienced over the years doing this type of deal and what I have learned that keeps my buyers clamoring for more deals on a continual basis. The reason I decided to write about this subject is because without the practical knowledge of how to structure your wholesale deals, it is going to be more difficult to pass those deals along to other investors. I hope this information will open your eyes to the real world and what it takes to be more profitable.
Last month I left off by saying, if you always pay too much for the properties you wholesale, the seasoned investors aren’t going to be interested in the properties you find and you will be forced to sell or assign the purchase agreement to other people who don’t know what they should pay. This is because those people don’t really understand how to figure the numbers and once they do figure out they paid too much, it only stands to reason that they won’t want to buy more properties from you. Once word gets out you are asking too much and it will be assumed you don’t know what you are doing and investors will avoid you like the plague. Everyone wants to make an adequate profit from every deal they do or they won’t do the deal. You must realize that there are other ways to profit from real estate other than being a wholesaler.
I know many of the Guru’s are all pitching how to be a wholesaler to make your fortune in real estate like it is something new. It bewilders me that beginning investors listen to these pitchmen who tell you that wholesaling is a fast way to create wealth. Wholesaling can generate fast money in smaller amounts if you know what you are doing but I question if wholesaling will create wealth for you. I guess for a few of you who live in spots throughout the country where extremely expensive properties are common, wholesaling just might be lucrative for the investor who wholesales properties they find to people who will be living in the property. For the wholesalers who will be assigning their assignable purchase agreement to other investors in areas where there is a large concentration of older, smaller houses where only investors do business or a few potential homeowners reside, the price you are asking as an assignment fee will be extremely important. Making large wholesale fees without rehabbing the properties you find will be more difficult to do.
I still wholesale a few properties each year when I find a property I don’t want to keep as a rental property for myself. I know you need to learn multiple ways to buy and profit from real estate besides wholesaling. You need to learn how to do Lease Option deals, Subject To deals, Seller Financing deals, Wrap-Around deals to acquire income properties, houses you can fix and sell retail as well as houses you don’t want for yourself you can wholesale. One more word of advice, as with all different real estate investing strategies you must know how to figure the numbers of every deal or you definitely aren’t going to make the best and most profitable deals possible. If you don’t pass along a good deal to the next person where they can also make a satisfactory profit you will find wholesaling a difficult way to create continual income.
Before I close for this month I would like to invite all of you to join me when you are in the St. Petersburg Florida area on a Monday night to attend my “Monday Night Investors Meeting”. This meeting has many successful investors who truly understand the investing business as well as understand how to maximize the money they can make from every deal they find. You can get more information about my meeting at www.LarryHarbolt.com.
I hope this article has opened your eyes to the fact that there is more than one way to buy real estate, wholesaling is only one. Your financial freedom will arrive much faster when you know how to do deals several different ways.
Until next month, Happy Investing!