DC Fawcett Real
estate wholesaling
People are interested in
real estate investment because of
the simple reason that it is a rewarding career. However, the hurdle which most
of them face is, they don’t have immediate cash. They believe there is no
better kick-start in their career other than wholesaling and enter in flip and
fix game of becoming a landlord which is the better way to start. However,
there are many pitfalls that realtors have to face. DC Fawcett
discusses the common blunders made they make
on this topic.
Wholesaling Mistakes Made By Realtors
If you think wholesaling is one of the best ways to make
money, there is no doubt about it. You are on the right track. However, you
need to understand the pros and cons so you avoid the mistakes as a beginner or
otherwise. One small mistake in this field can prove to be very costly, which
needs to be avoided. We will be discussing the wholesaling mistakes below.
1.
Overpaying – This is one of the common mistakes
the realtors make. This basically because of ignorance or insufficient
knowledge about this trade. The wholesalers need to gather a lot of information
and do plenty of market research so they won’t end up overpaying.
2.
No marketing – Marketing plays a very important
role in any business especially the
real estate. You need to keep marketing the
property using the marketing strategies. However, this is another mistake which
many make when they don’t take the trouble to market the property. One cannot
expect to sell the property unless the buyers are aware of it.
3. Wasting time – Many wholesalers spend more time
on Search Engine optimization, social media short sales, and Daisy chain emails.
Instead of this, you as a wholesaler need to target the pavement and get the
buyer and seller leads.
4.
No emergency cash – Though, you need not carry
any money initially does not mean you should not have cash in case of
emergency. As a wholesaler, you will sell the contract to the investor who
approaches you to inquire about the property before taking a decision to buy
it. If you are unable to find the buyer, you would still be paying for the
property.
5.
Ignoring the buyer’s needs – This is the main
thing which the wholesalers ignore in the pretext of making a sale to earn a profit, not realizing that it will affect their
business in the long run. If the buyer feels they don’t get much benefit in
buying the property, they will negotiate a lower price. If they negotiate a
very low price, it will eat up your profit. To avoid this, you need to put yourself
in their boots.
6.
Not crunching the numbers – Before signing any
deal, you need to analyze whether it is worth buying. For this, you need to get
After Repair Value (ARV) from the real estate agent and calculate 70% of the
ARV and deduct t from the wholesaler’s fee. The number should match with your
Maximum Allowance Offer (MAO)
Conclusion
Whether you are experienced or a beginner, you need to be
thorough in real estate market so no one can take you for a ride.
