There are 2 HUGE LIES in wholesaling and the traditional teachings…
Now… I guess that might be harsh, it might not be lying if they don’t know about it…
What am I talking about you ask?
It is this…
- You have to have a Large Cash Buyers List to sell your contract to:
It is MUCH more important to build relationships with your potential buyers. You typically aren’t going to have a successful “buyers list” with hundreds of investors on it. You are going to be working primarily with 2 MAYBE 3 very legitimate aggressive buyers that you trust and they trust you. These people will become some of your closest business partners and honestly.. some of your closest friends.
- You must sell your contracts to CASH Buyers:
Anyone looking for property is a potential buyer for you. They can even be an FHA loan buyer! It does not matter if the buyer is getting a bank loan or not. You don’t need to chop your potential buyers in half by requiring all the cash to be in hand up front, and to be frank, it’s not smart to be that guy anyways. Why use all of your capital if you can use “the banks” money at 3%!? Now, there are some slight differences when dealing with a loan buyer versus a cash buyer. The cash buyer deal can usually close much quicker, which, sometimes is important. If the buyer is getting a loan from a bank, the property must pass whatever qualifications the bank has for that type of loan. So you will need to let your seller know that there will either be inspections or at the least, an appraisal. LUCKILY, you have done a good job of providing value to both parties and gotten the property under contract at a great price so you should have ZERO worries about this process.
These 2 misconceptions CRIPPLE businesses. They limit potential and creativity. Don’t Fall into these pitfalls!
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