Wholesaling is an incredible way to generate fast cash, and keep it flowing. Here's a story that happened to us recently that demonstrates how great wholesaling truly is.
Through our marketing, a motivated seller called us (we no longer do outbound sales calls looking for motivated sellers) about a house they had in a very good neighborhood. Joe spoke with the seller on the phone and assessed that it was worth going to see the property.
It was in really good shape – already had new electric and HVAC – but needed a new roof, kitchen & bath updates, and general cosmetics. The only problem was that it had a tenant, and the Seller didn't know how to get rid of the tenant. We told him not to worry, that we have an friendly way to entice tenants to move. Joe spoke to the tenants and offered our moving allowance of $250 if they move by a certain date and leave the property in broom clean condition. Joe, not being such a great negotiator (ha ha), had to go up to $300. This technique always works, and it did here again. The tenants left with no problem, and they left the house clean. (Is there a better way to have tenants move out?)
Joe had negotiated with the Seller to close within 30 days after the tenant moved out. As soon as the house was vacant and we had a key, we posted an ad on our wholesale buyers website. Within 24 hours we had a full price contract. We verified funding with the buyer's hard money lender. And the house closed a little over 2 weeks later for a $20,000 profit. Is that great or what? That's why we love wholesaling and think it should be part of every investor's portfolio. How many of those deals do you have to do in a year to replace your current salary? And oh, by the way, that's not a “special once-in-a-lifetime deal”. That's not far from our normal average everyday profit on a wholesale
So what's the lesson here? What other business can you do from home, at your own pace, and earn $20,000 in 2 weeks with almost no money, no ownership, no repairs or tenant headaches!!
We're not saying all of this to brag, but so that you can see all of the potential of real estate investing. If you're not wholesaling houses now, you should be. What's stopping you?