Question: “Can you wholesale with no money?”
This is the age old question but I don’t wanna assume that everyone knows what that person is coming from,
but we market all the time…
Flip houses no money down, no closing costs, no credit needed, no experience needed.
Those things are actually very true.
The same thing especially Wholesale is very true because with wholesale,
some people say you’ve got to put money down at least $10, $20 or $100.
I am telling you I have been doing this since 2005…
and I have never put a dime down to lock up a property under contract.
Now I know some people are gonna be ear hustlers and just say things like “but that’s illegal”,
Dude! We close a deal with an attorney 100% all the time.
So you don’t really get to tell me what’s illegal or legal.
I just know that I don’t cheat, I don’t steal, I don’t lie and I hire attorneys to do my deals all the time.
Just to make sure that everyone is covered and protected.
But I am telling you right now, I have never done a deal where I had to put money down.
Previous Post: Who Pays Closing Costs In A WHOLESALE DEAL?
When I am flipping or selling to a buyer, I always collect money down.
Meaning $3,000 to $5,000.
If you are going to be an investor you are going to buy a wholesale deal, so you better have that kind of money to put down…
because you are going to be fixing and flipping the property.
That’s different from wholesale.
Now talking about Wholesale with No Money…
You don’t get paid for learning all the legalities, you get paid for finding and securing these deals.
Sometimes I have closed deals without even securing the papers but don’t do that.
Always have a contract because there is something that does with psychology when somebody signs a paper over you.
But do I have the intentions to go in force in case they change their mind and decide not to sell to me tomorrow?
No, this is a numbers game for me as far as I am concerned,
and basically if somebody turns around after signing the paper with me today and says, “Hey I don’t wanna sell anymore.”
I will say “Thank you for letting me know.”
Because it is not ever about one single deal.
It is about volume, it’s about as many contracts that I can lock in as possible.
As long as I do my math and I make sure that it’s a potential buyer that will pay for the house but will also pay my fee for finding the deals.
You get paid for finding these deals, for being the marketer.
You don’t get paid for “getting stuck with working on a straight line.”
If you understand the way sharks operate… when you find these deals and very very sweet deals, people are gonna compete for trying to get these deals from you.
Because they want to be the one to pick up the next project.
If it’s a good deal, if it’s not a good deal it’s gonna be sitting down there and nobody wants it…
And it’s very simple, if you know that long enough you know what people want.
So, back to the point… you get paid for finding the deals, not for putting money down.
Now if you go deal with a realtor or a real estate agent and you wanna put a house under contract that’s listed on the market, they are gonna want $1,000.
Why, because you are dealing with on market deals.
If you understand what we do here and you are following the 11 Days Challenge, then you understand that we don’t deal with On The Market Deals.
That’s one of the reasons because you have to work in a straight line and then follow all the rules and guidelines that are not necessarily laws but just rules and guidelines.
You have to follow them to the T because the agent will make you drop $1,000.
But the good news with that side of the market is that you probably can get your $1,000 back if you are pulling out for a legit reason.
If you wanna wholesale a deal, it’s a numbers game so how many times are you gonna put down $1,000 before you run out of money and feel like this is not working…
Or you lock-up a property under contract at a number and then you try to pull out and they say “well you can’t pull out, you are going to lose your down payment”.
So no, absolutely we don’t and if you have to…
let me say this because you probably have listened to other gurus saying “you kinda have to to secure the equitable interest… it’s not really an equitable interest unless you do that.”
Again, you are missing the point.
This is psychology at the end of the day and you are completely missing the point if you are stuck on that.
If you have to, never do more than $10 just to say that the contract is valid,
… but if the person is requiring you to put down payment before they sign a document, chances are they are gonna be like “$10? That’s crazy. I need at least $1,000″.
Either way you wanna shape it… you don’t wanna have a conversation about down payments.
You wanna have a conversation about the distressed, the services that you are there to offer.
What is the value that you are bringing to that person for helping them get rid of the property.
That’s where your conversation needs to be.
And that’s it, no more no less.