Everyone involved in any aspect of real estate has to deal with this one — it’s just the nature of the business.
MITIGATING THE RIS G THE RISKS
I’ve already mentioned a few ways to lessen your risks, but let’s go over them in more detail.
Create a great potential buyers list.
I know I’ve mentioned this a few times already, but this truly is the key to a successful wholesaling business. Again, you need names, contact info, and what kind of properties they’re looking for. And don’t forget to keep in touch with them and keep their preferences updated.
Have an exit plan.
Sometimes you just can’t find the right buyer, no matter how thorough your list or how far and wide you search. One way to protect yourself is by including an escape clause into the contract, e.g., “subject to agreement by my partner.” That said, backing out should always be your last resort. One option to avoid using an escape clause is by changing the deal with the buyer. Consider lowering your wholesale fee and/ or your end selling point, which might land you a buyer after all. You might make less money — or even none at all — but at least you’ll have honored your deal to buy from the seller.
Learn how to connect with sellers.
Many sellers don’t know about wholesaling, they probably don’t like the sound of selling for below market value, and they might have other options than selling to you. This is why it’s important to present your offer in a respectful, compelling way, and you
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