especially for investors new to wholesaling. According to The Real Estate Wholesaling Bible by Than Merrill, new wholesalers have about a 50% chance of deals successfully going through. This stat might seem off-putting. However, when you know there’s a possibility of failure, you can have a backup plan in place, which can help lessen both the risk and the stress.
It’s not easy pulling everything together.
There are many steps in the wholesaling process, and it’s not always easy to pull things together. Sometimes you just can’t find the right deal. You need to be able to get the property for lower than it’s worth, or else you’re not going to make any money, and these properties aren’t always out there. As we’ve already discussed, you also need to have the right buyer. Even if you’ve got a great list of potential buyers, it’s possible that you don’t have anyone who wants the particular property you’ve found.
You’re subject to market volatility.
Everyone involved in any aspect of real estate has to deal with this one — it’s just the nature of the business.
MITIGATING THE RISKS
I’ve already mentioned a few ways to lessen your risks, but let’s go over them in more detail.
Create a great potential buyers list.
I know I’ve mentioned this a few times already, but this truly is the key to a successful wholesaling business. Again, you need names, contact info, and what kind of properties they’re looking for. And
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