A wholesale transaction allows you to buy and sell best-deal properties quickly and with little knowledge, money, or credit. It is a method that allows you to enter the business and begin building it. It also provides a unique service to both sellers who want to get rid of properties as quickly as possible, and buyers who are looking for good deals on properties to repair or renovate and sell at a profit. Wholesales are vehicles that sellers and buyers like because you take on most of the grunt work in finding the deals for them.
To be a great wholesaler you have to be an expert in knowing the difference between a good deal and a bad deal, what buyers are looking for and then finding those types of properties with your sellers, so that appropriate properties are quickly exchanged and money is made for all.
There are three key numbers that you need to look at when buying and offering properties to your partners. The first number, and probably the most important one, is the ultimate purchase price of the seller’s property. By knowing what the buyer wants and willing to pay, you can use that information to negotiate the seller’s price down as far as possible.
The next number to consider is the potential cost of repairs, renovations, or upgrades the buyer must perform before they can sell the property. If the property requires extensive work, the buyer may not pay as high a price for the property, and therefore you will make less money on the deal.
The third number is the price the property can be sold at after the repairs and renovations are completed. This isn’t necessarily what you think the property can sell for. It is the price the buyer would be willing to pay for the property.
A wholesale is a cash maker in that is allows you to collect the profits on deals and save that money up to go to the next step of buying, fixing, and selling properties. Wholesaling provides a clear path to becoming financially free.