|How to Figure Out Your Wholesaling Terms|
|Written by Cris Chico|
|Friday, 26 February 2010 16:22|
How to Use Leverage to Maximize Your Wholesaling Profits
However, there is another element to wholesaling terms that is separate (but related) to demand, and that is leverage. The more leverage you have over prospective buyers, the more you can ask for.
At the same time, however, one must be wary about not having leverage. When you do have multiple buyers, you can afford to ask for amounts that a buyer may not be willing to pay in slow market areas. This means that buyers may easily get frustrated and walk away from the deal – but that doesn’t matter, because you have other buyers in this mix.
When you do not have multiple buyers you do not have that same leverage, even if the market for that area should be ripe with interested parties. Asking for something that could cause a buyer to walk away from the deal means that you lose one of the few individuals interested in completing the transaction. Obviously there is a high likelihood that if you have only one or two buyers, and one of those buyers walks away, your chances of completing the transaction are greatly diminished.
As the creator of Virtual Wholesaling, Cris Chico is helping investors realize their dreams of financial freedom through his proven & guaranteed method of finding & flipping properties in hot markets (whether you live there or not).