I found some helpful tips while browsing Biggerpockets.com to help sell your wholesale deal, when selling almost feels impossible.
According to Stephani Davis:
- Price Too High: While this might seem obvious to some, it is a factor that is overlooked by many new wholesalers. While I’ll admit that I’ve seen some properties that I don’t think I could move even if I was giving them away, in most instances you can get rid of a property quickly by simply lowering the price. How far you will need to lower it will depend on what the active investors in your market are willing to pay, and this is something that should be learned before you start putting properties under contract.
- Marketing Your Deal:
- Location, Location, Location: If your deal is located on a busy street, across from the neighborhood liquor store, or right next door to a cemetery or the railroad tracks, chances are you’re going to have a much harder time getting rid of it. This is something that you need to take into consideration when you’re running your numbers and formulating your offer. While it may seem like a great deal on paper, if the property is in a crappy location it’s going to decrease your chances of finding an end buyer for it.
If your property is priced right and it’s not selling, chances are, you haven’t done a good job of getting the word out about it. Once you get a deal under contract, your job as a wholesaler is to market the living crap out of it! If you’re serious about getting it sold, you should be doing everything on the following list (at the minimum) to find an end buyer:
*Send the deal to your buyers list (if you have one)
*Put ads up on the online classified sites every day
*Place signs around the property
*Pass out flyers at any REIA meetings in your area
*Contact other wholesalers about the deal to see if they will help you market it
*Call every For Rent sign in the area and see if the landlords would be interested in your deal
If after doing all of the above you still haven’t found an end buyer, chances are that it’s priced too high!
- Major Repairs: While there are some rehabbers who have no problem tackling major projects, keep in mind that your pool of buyers will be much smaller if the rehab needed for your deal is an enormous undertaking. Just to give you an example- in my market (Tampa, FL), sinkholes are a common occurrence, and even though you can score some huge discounts on sinkhole properties, the number of investors who are willing to take on that type of project is very small.
- Funky or chopped up floor plans: Unfortunately, not every homeowner has the sense to hire a competent professional to do their remodeling for them, and instead elect to take matters into their own hands. The results, while often comical, can result in major problems when it comes time to resell the property. If, for example, you have to walk through four bedrooms to get to the one bathroom in the house, or if the kitchen has been relocated to the master bedroom (I’ve actually witnessed this), you’re going to have a much more difficult time finding an end buyer to take down the deal.
All of the points Stephani bringst up are very important to consider when selling any property, and should be considered before making any deals, but also keeping in mind that buyers are out seeking property in all kinds of markets. This information is extremely helpful and I believe is important to share with my fellow Wholesalers.
