Susan Ormont - RISK VERSUS REWARD: A SIMPLE GUIDE FOR INVESTING IN REAL ESTATE

don’t forget to keep in touch with them and keep their preferences updated.

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. 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, they probably don’t like the sound of selling for below market value, and they might have other options than selling to you. This is why it’s important to present your offer in a respectful, compelling way, and you need to be able to clearly explain the process and how it would help them. For example, maybe they’ve been hit with high medical bills and they need the money from the house to pay for them. Or maybe they lost their job, or the sole breadwinner passed away and the mortgage is too expensive for them now. Your offer could help them out of their tough situation, and quickly. Try imagining yourself in their position; think about what you would be feeling, how you would want to be treated, and what questions you would have. Anticipating these things and making sure you can explain everything in an easy-to-understand manner can go a long way toward getting you the deals you’re after.

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