accurate numbers (on ARV, profit potential, etc.) Learn to select "apples-to-apples" comps, recognize and avoid people who waste your time, correctly estimate repairs or use a contractor to do so...it's also safe to let buyers do their own due diligence, especially on repairs. Use this book to help guide your learning. "Ignorance is no excuse for the law" when it comes to forwarding properties to buyers, any more than you saying to the IRS, "I didn't know I had to pay taxes." ALWAYS prove your properties to your buyers to build trust: then, you may just get a solid partner buying from you repeatedly, long-term! In the end, the money finds the right deals.
Have an exit plan.
Sometimes you just can’t find the right buyer, no matter how thorough your list or how far and wide you search. One way to protect yourself is by including an escape clause into the contract, e.g. “subject to agreement by my partner.” That said, backing out should always be your last resort. In fact, your goal should be to NEVER back out, but to move all your deals. One option to avoid using an escape clause is by changing the deal with the buyer. Consider lowering your wholesale fee and/or your end selling point, which might land you a buyer after all. You might make less money — or even none at all — but at least you’ll have honored your deal to buy from the seller. Learn how to connect with sellers. Many sellers don’t know about wholesaling, and might not like the sound of selling for below market value. They might have other options besides selling to you. This is why it’s important to present your offer in a respectful, compelling way. You need to clearly explain the process and how it would help them.
44
Powered by FlippingBook