Today, Justin Wilmot goes over the benefits of closing a wholesale deal, including how a good deal can create a bidding war.
By getting your wholesale deal on MLS, you’ll get the traffic needed to have multiple offers come in. You won’t need to do any repairs and can market the property as a fixer-upper or handyman’s dream.
Mike: Welcome back to the flipnerd.com REI Classroom where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Justin: Hey, guys. Justin Wilmot here. I’ll be your host for the FlipNerd show today, and today we’ll be talking about the benefits of closing on a wholesale deal.
Mike: This REI Classroom real estate lesson is sponsored by uglyopportunities.com.
Justin: Okay, so the benefits of closing on a wholesale deal. One of the major benefits is going to be the idea of bidding wars. Right now in 2016 the markets are hot all across the country, and if you’re in a major metropolitan area, even anything just slightly below, a good product or a good deal is highly in demand. He who has the deals can control the market. So if that’s the truth, which it is, why wouldn’t we want to be in that position?
So one of the benefits of getting private money or any type of source of funding and closing on a wholesale transaction in order to relist and put it on the MLS becomes extremely profitable. Now, some ways that you can actually make this happen and keeping it profitable without thinking, oh my gosh, I need to get realtors involved, I’m going to lose commissions, and this could be complicated. Simply obtaining the financing, closing, doing nothing to the property. And then finding a flat fee company, a company that will list the property flat fee for you, you can do it for, like, $250 just flatfee250.com, depends on what state you’re in, and you can list that baby and take all the traffic so it goes on the MLS, and all the traffic gets re-diverted from that company to you.
And now you can show and open the doors and take the benefits of being on the MLS and getting in the same bidding wars because your product will stand out above everything. Right now the only thing that might have the idea of a discount are those hot keywords like foreclosures and REOs, corporate owns. Everybody’s going for that. But when you can put “hot handyman deal” or a “hot handyman deal that needs work” on the MLS right now, it’s becoming insanely lucrative.
We have had times where we can potentially double our projected profits rather than just wholesaling it to our buyers list. By closing and putting it on the MLS, we’re doubling profits. And even if that profit is getting chewed up a little bit by your private money partners or your lending source, it’s still becoming much more profitable to do this. So keep in mind that flat fee listings is something that can save you, and it’s one of the major benefits of closing on a wholesale property, especially in a seller’s market like we’re in right now. So take that, use it, start profiting from it.
Mike: HomeVestors, the We Buy Ugly Houses folks, is a franchise system of hundreds of real estate investors that have purchased over 65,000 houses. If you’d like to learn more about the most powerful real estate investing system in existence, whether you’re a pro looking to take your business to the next level, or whether you have no experience at all, but a burning passion to be successful at real estate investing, please visit flipnerd.com/ugly to learn more.
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