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Show Them The Money! Wholesaling Success Tips

Selling your wholesale property to a real estate investor is about making this a deal that is hard to pass up. Your target investor may say they are all out of ready cash right now – but flipping is a cash-eating beast, so busy flippers are almost always lean on cash. But investors have to find their next deal somewhere. It’s about presenting them with a profit so good they will scrape, scratch, deal or steal the cash to close on your wholesale property.

  • Show your target investor a firm, well-supported ARV (After-Repair Value, the market value once the house is move-in ready). Use good comparables, show it clearly and concisely, and don’t expect the investor to need to do any further work to believe it (because they may not get around to it as quickly as you wish).
  • Show your target investor a bid from a contractor who is ready to do the work. Although you won’t be the one the contractor will be working for, nonetheless a rehab deal is no good without a construction crew. Have one available, as the flipper’s usual contractors may already be busy.
  • Show your target investor an efficient but complete package of information on the property, including photos of the opportunities and, even more especially, the problems. You want to do this deal fast, so help them jump right in to the decision-making process. Of course they will go to see it themselves, but getting them there may be all about the package and the pictures.
  • But above all … Show your target investor the money! The profit between your asking price and the ARV, covering all the costs and leaving a generous profit that they won’t pass up!

Wholesaling is all about the buy-in price. Whatever the ARV, if the buy-in is low enough and the profits are high enough, someone wants to do this project.

Property problems can be solved with money, and there has to be enough of a spread between the buy-in and the cash-out to fix everything, with enough left over to make it worthwhile.

Think not just in terms of rehab solutions and the market value – think in terms of profit! Work that margin and present it on a silver platter to real estate investors hunting their next deal, and you’ll move your wholesale property quickly and make your own money doing it!

What is your target profit margin in a real estate deal, as either a percentage or a dollar value?

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About Author

Andy Werner
Andrew J Warner

Real Estate and investing have been my passion for over 15 years. I love transforming a broken down distressed property into something that is fresh, updated and modern. My real estate investing career began in foreclosures, but I have also built new, worked direct with sellers, apartments, condo conversions, rentals, wholesale, commercial etc.

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