As a investor, you want to be flipping as many houses every single month as you can. You would absolutely love to do 10 or 20 deals every month because you know that making money in this economy is possible while all your competitors sit on the sideline. So how to do find the houses to flip? Got a secret someone at a bank throwing you houses? Well most of us don’t but here is how many investors do it.
People who flip have no time for marketing, meeting with agents, or even to talk to distressed home owners but did you know that there are people out there that will do this for you? They spend lots of money to go find motivated home owners, bank foreclosures, and deals on the M.L.S. They do take some money from the deal but they expect to get paid for their services. I know because this is what I do. I find the deals for the investors.
Wholesalers have all the contacts you don’t and we are able to get deals before anyone else. A really good wholesaler will be able to get 8-20 deals every single month. I know personnally that my buyers list is big and when a deal becomes available, it’s usually gone within hours. We expect to get paid because we take a huge amount of risk advertising for deals and hoping we might find 1 or 2 while spending thousands to do it. So how is it that we get paid?
You will have to put a earnest money deposit down (usually twice the amount that the wholealer paid) but when you do, the house is yours. They assign the contract to you and congratulations, your the new owner of the house. You need to do your homework on the house though. If the numbers are wrong then you just bought it and good luck on what your going to do then. Also if you mess up and can’t close then your deposit is gone. You messed it up not the wholesaler.
A good wholesaler can get 5-10 properties a month to sell his investors and some can do many many more. Now this is not free so don’t go scratching your head when you see the wholeasler get a 10K check at closing. They market alot and expect to get paid for that work. I have seen some checks far above that but my philosophy is as long as everyone is making money then im happy. There is enough for everyone in this market so don’t be greedy but expect them to get paid. In case you didn’t realize it, I am a wholesaler and my company does very well. We find numerous deals each month and they don’t last long.