Today we are going to discuss why you need wholesalers on your side. Real estate investing is a competitive game. Therefore, the winners are those who combine smart property acquisitions with proper funding. Wholesalers can help you unlock better deals that others won’t even see. Here’s why they are an essential part of your success.
The Two Pillars of Real Estate Investing
To thrive in real estate, you need two things:
First, Great Deals:
The best properties often don’t make it to the public listing. They’re snatched up by investors at the top of a wholesaler’s list.
Second, Proper Funding:
Being “money ready” means you can buy, fix, as well as finish properties quickly without delays.
Why Wholesalers Favor the Money-Ready Investor
Wholesalers prioritize investors who:
- Close deals fast.
- Avoid creating complications.
- Have funding ready to go.
When you’re easy to work with, wholesalers offer you deals before they hit the email lists. To clarify, these properties often have higher profit margins. As a result, they can be 20% more than publicly listed ones.
Example:
A property with a $400,000 ARV (After Repair Value):
- Hard Deals: 10% profit margin = $40,000.
- Good Deals: 15% profit margin = $60,000.
- Great Deals: 20% profit margin = $80,000.
By securing great deals, your profits double compared to scraping through regular listings.
Be Money Ready to Maximize Success
Being “money ready” means having the funds for:
- The purchase.
- Repairs and renovations.
- Carrying costs and any unexpected overruns.
To clarify, the faster you complete a deal, the quicker you see returns. Delays of just three months can slash profits in half.
The Long-Term Impact of Better Deals
Let’s compare three investors flipping three properties annually:
First, Hard Deals: $120,000/year or $360,000 over three years.
Second, Good Deals: $180,000/year or $540,000 over three years.
Third, Great Deals: $240,000/year or $720,000 over three years.
Investors at the top of a wholesaler’s list not only earn more but they also enjoy the ability to reinvest profits or fund new opportunities.
How to Get Money Ready
To work with wholesalers and secure great deals:
- Line up your funding for the purchase, rehab, and holding costs in advance.
- Build relationships by showing wholesalers you’re a reliable and fast closer.
- Work with lenders like us to create a “money bucket” strategy that funds every stage of your project.
Start Thriving in Real Estate Today
Want to make real estate investing easier as well as more profitable? Reach out to us. We’ll help you get “money ready” so you can:
- Secure better deals.
- Finish projects faster.
- Either do less and enjoy more or scale up to grow your portfolio.
Watch our most recent video to find out more about: Why You Need Wholesalers on Your Side