The question below has inspired another wholesaling real estate for dummies lesson but it’s okay; I am here for it.
As I said in my previous lesson, there is very little room for speculations in wholesaling real estate
So our frame of reference is very important
And it has to be calibrated to get you ready for the massive success that wholesaling real estate “done-right” creates.
Therefore there are 4 variables that you must keep in your back pocket in order not to sound stupid to the people that can help you.
Variables simply mean when any of these 4 things change, it can potentially change the fate of a potential deal.
(1) Subject Property
This is the main property in question and of interest.
Everything else relates back to this property, and generally its size and features.
The presence of a garage or lack thereof can make all the difference in favor of the potential deal or against it.
(2) Comparable Sales & Listings
To succeed in wholesaling real estate, it is unprofitable to be the first or the last in the neighborhood.
So if there hasn’t been sales in the area in quite a while, it doesn’t necessarily mean all is well.
But also with respect to inventory, demand and supply, it may be a good thing.
Generally for the wholesaling real estate business, you need to operate where there is volume in sales.
(3) Market Period
The sales happening in the area need to be within the last year. The more recent the better.
This is especially true if institutional lending will be involved in the deal.
It is yet another reason why the last purchase price of the subject property tend to have little significance when determining a profitable offer.
(4) Distance Radius to Subject Property
Real estate is still location location and location.
If you bring a mansion into the ghetto, it’s only worth the ghetto.
So when you pull comparable, it typically needs to be within a one mile radius for any professional to consider a good comparable.
If there are no sales within a one mile radius, some may ask for a 2 mile radius but typically,
That conversation is moving in the direction of a dead deal.
If a neighbor is such a high end and properties has to be that far apart, it usually a bad market for wholesaling
Or at least, that’s not the best place to be wasting resources.
Below is a question for us to address with this lesson…
“I have a very serious and important question for you.
I have a house in Wichita that a guy wants to sell.
The house needs a complete tear down rebuild.
The neighborhood is going for $42,000.
But if I do get it, I will get it at almost $50,000; making this the most expensive house on the market.
I will list it for $60,000+.
This is my first deal and I don’t know if it’s worth it.”
Enjoy the video.
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Padilla 5.0 out of 5 stars ⭐⭐⭐⭐⭐ Awesome book!!
Cliff R. 4.0 out of 5 stars ⭐⭐⭐⭐ Full of actionable, useful information for sure.
The author does an excellent job of cutting through much of the real estate wholesaling BS that is prevalent in the market. That is to say while most gurus are teaching what they DO NOT DO, Ola outlines steps of creating value at the center of your marketing. His down to earth delivery just makes sense. He speaks of leveraging technology, the importance of multiple income streams, and an overview of the real estate wholesaling business in the new age of business marketing. For example, he mentions that many people don't even like their family members stopping by unannounced, so how can you expect them to be ultra receptive to a stranger popping up looking to capitalize on a misfortune. Of course that's not how the "Door Knocking" conversation would be framed, but that's exactly what it is. All in all I enjoyed the read and if you plan on making action your focus, you will too.
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Ola is a legit real estate investor and marketer. He's a real student of wholesaling and marketing - his approach to marketing for wholesale deals - ADD VALUE - is recession proof and feels right. Don't pass up this book!
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As a virtual real estate wholesaler and investor, it makes sense to me to optimize my approach and use technology to drive. This book gave me a clear, concise framework that I could leverage and implement!
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This book is amazing and very beneficial. The author is very knowledgeable on the concepts at hand. Definitely a great book to read.
How do I start real estate wholesaling?
The first step in wholesaling real estate is to make sure you are well educated in marketing especially in aa digital era.
You have to learn how to get and capture attention of your target market where it is most resourceful and effective.
How is wholesaling real estate legal?
That’s simple. Wholesaling is a type of trade just like retail.
The only difference is that you are buying cheaper and closer to the source and selling to others who want to sell at retail. It just happen to be real estate.
Is wholesaling real estate profitable?
As usual, it depends on what school you learned your skills from.
This is entrepreneurship at the end of the day.
It means it attracts everyone but only few people have the skills to ensure that all marketing resources (time, money and energy) are tracked for returns.
We focus on teaching hacks that beats the average person in performance.
Straight forward marketing using direct mailing, cold calling can get very expensive to the extent that even closed deals are not worth the input.
How much money do you need to start wholesaling real estate?
Using the smart wholesaling formula, all you need is $300 but it can take a lot less if you don’t value time and have time to invest in manual marketing methods.