you need to make sure you’ve got a thorough database complete with buyer names, contact info, and property preferences. If you don't, you will have to know somebody who does. "Purchasing a buyer" may cost about half of your fee. For example, If you have a wholesale under contract and you are offering the contract for $10,000, somebody who brings a buyer may want $5,000. In some cases, they may add $5,000 to your fee and sell the contract for $15,000, keeping their share and leaving you the rest.
THE WHOLESALING PROCESS
The good news is that anyone can be a wholesaler. There’s no license required, although knowing how real estate transactions work is mandatory. Another advantage involves working with a real estate agent or broker since they can search the MLS for properties, help you acquire off-market deals, or provide a buyer for the contract/property. I can help you with any portion of a wholesale. I can also help you find a title company that’s open to the wholesaling process (not all are). Each company has different requirements for all the parties involved so I can educate you about that, as well.
Finding the Right Properties
When I’m helping my clients look for properties to wholesale, there’s a specific number to keep in mind: 70. End buyers (think flippers) tend to want to pay 70% of what they can get once the house is fixed up. We call this the ARV (After Repair Value) Here’s the formula to use: fixed-up resale value – repairs – wholesale fee = max offer you should make
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