Is Wholesaling Still Alive?
The wholesaling world has been flooded now that things are starting to change. I have milked my bank account now on bandit signs and post cards. My seller leads are still coming in but when prospective buyers call, they only call for information and inquiries.
My email blasts have generated NO RESPONSE in OVER A MONTH. Is wholesaling or assignment of
contract on junk properties still the right business for beginners? or is there a market shift or is it just me?
I dont think it is the techniques that are the issue, I think also that it is the market. In Philly area yo udefinitley have to start at 50% ARV. Areas that boomed are now in the soft area.
Rehabbers that expected to do a great deal got caught and their use of own money or hard money did not matter because they cannot sell the props at the value they want.
Several I know are indeed in the problem I describe and are renting.
My partner and I are working with a few on lease optioning those instead, a better exit for such a market.
Joe
After overextending my own credit, I was in need of a "credit partner" to continue expanding. My mother in law was willing to do it with me because she knows I am trustworthy. She was mostly interested in the tax benefits, and since I already have all the deductions I need and she is putting in all the money all the tax benefits (which are substantial) go to her. I want cash flow now, so I get paid for my time. We split the profits. Neither of us put in any actual money- it is all borrowed from banks using her credit.
This arrangement has worked very well for both of us. I would never consider "burning" her, but that is just my nature- it would be true even if she was a stranger, and even if I felt the arrangement was not in my favor.
I have real estate partnerships with "friends of friends", but in these cases we each put in equal amounts of money. I think it would be difficult to find a stranger willing to be your credit partner, for reasons others have mentioned. Look to family and friends for this.
Chris