A growing number of successful real estate investors have shifted to ‘wholetailing’ more of their houses, especially as the market shifted to a sellers market. Alex Joungblood tells us what Wholetailing is in this FlipNerd.com Flip Tip.
Mike: Hey it’s Mike Hambright from FlipNerd.com, and we have a quick VIP tip to share with you from Alex Youngblood, who’s going to share a tip today on wholetailing. He’s going to tell us what wholetailing is, which is basically a hybrid between wholesaling and retailing a property, and something even I myself, and Alex, a lot of other veteran real estate investors use to make more money on deals.
Alex: Yeah, so basically, what we’re looking at is wholesaling and retailing. There, it seems like a lot of people will just pin themselves to one of those, I’m a wholesaler, or yeah, I’m a rehabber, I’m a retailer, but there’s something right in the middle of that, and that’s called wholetailing. A lot of people kind of think, you know, it’s a made up word I guess. It’s a combination, but basically what you’re doing is doing little to no work to a property that you’ve acquired, and putting it right on the MLS, and letting the MLS do the magic for you, because a deal that is on MLS, even though it’s discounted might not be as good as one of your rehabber buyers might like, or whatever the case may be; is heck of a good deal to a homeowner, and maybe even another investor on MLS, because they don’t understand the process of actually finding deep discounted deals that we are able to do so they’ll just take what’s on the MLS that seems to be a good deal.
So by using the power of the MLS and leveraging that you can get a lot more for your wholesale deal than you could if you were to just send it to your regular buyer, or go through all the work of retailing a property, and then being in a situation where after it’s done you know now you go through that 50 zillion point checklist after the home inspector gets through with it, because you’re selling it as is you don’t have to do that. So you get the best of both worlds in that situation.
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