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How to Figure Out Your Wholesaling Terms PDF Print E-mail
Written by Cris Chico   
Friday, 26 February 2010 16:22

How to Use Leverage to Maximize Your Wholesaling Profits


After you have a property and have begun shopping it around to the buyers, you will need to come up with wholesaling terms, especially deposits and asking prices. Much of the decision is based on current market prices; so, for example, if a property in a particular area is widely sought after by buyers in the area, you will be able to dictate a different price than if the property is in the middle of nowhere.

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.

Defining Leverage
While demand in a particular area is based on economic conditions, leverage is based on the number of buyers that you personally have interested in the property. It does not matter how many buyers there are in the world for that piece of property, what matters are the number of people that you personally have interested in the property you are dealing.

Utilizing Leverage
When you have leverage with your buyers, you can start to ask for slightly more exorbitant things – such as large, non-refundable down payments. You are also able to hold out on a buyer in order to get the actual value of the property you are dealing, rather than settling for a lower offer from a buyer that is trying to weasel their way out of paying the accurate property price.

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.
Deciding on your wholesaling terms is directly related to the amount of leverage you have over the buyers that you, personally, have interested in the property. The market is only one part of the mathematical equation.

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).

 
Make Money Wholesaling Real Estate Online PDF Print E-mail
Written by Charles Petty   
Wednesday, 24 February 2010 14:45

Why Wholesaling Real Estate Online is Making Investors Rich

In today’s real estate market foreclosures and motivated sellers are everywhere. So what is the best money making strategy for you as an investor? That would be wholesaling the properties.

What is wholesaling?

Wholesaling is finding a bargain property and passing it on to another investor. That investor will either buy and hold the property or they will buy and resell it. The property can be a single family home, a multi family home, land, lots, commercial buildings, apartment buildings, pre-construction homes, condos or even new homes. It is simply finding a bargain property and passing it on to a bargain hunter.

That bargain hunter will be an investor who will either purchase the property to resell it or purchase it to hold it for rental income. Your profit as a wholesaler should be between $5000 and $30,000 on each house. In some cases it will be higher than $30,000 and on some deals your profit may be a little lower than $5,000.

Now virtual wholesaling takes this concept to a whole new level. Virtual wholesaling is wholesaling on steroids! It is using the power of the internet and technology to wholesale properties. These properties can be in your own market or they can be in other markets across the USA. Now what really explodes your business in today’s market is the ability to use the internet and technology to find deals AND to sell these deals to buyers all across the USA and even into other countries like Canada, England, New Zealand, China and more!

There are several investors in states across the USA and foreign investors that see the discounted properties in today’ s market and are looking for a consistent source of these deals. That’s where you, as the virtual wholesaler come in!

Here are 3 keys to building a Six or Seven Figure Virtual wholesaling business:

1) Building a hungry buyers list that will buy properties from you over and over again. You can find and prescreen buyers using several of what we call “New School Real Estate Tools” such as websites, podcasting, autoresponders, blogs, membership sites, article submitting, video marketing and more.

2) Building a virtual team that can help run and grow your business without you being involved in all the day to day operations. You use virtual assistants in the USA or abroad that will explode the growth of your business.

3) Finding and pre-screening great deals in your own market and/or in other parts of the country. There are several resources online that can help you find deals, determine value all from the comfort of your own home and in about 10 minutes!

Virtual real estate investing and especially virtual wholesaling is the wave of the future. These concepts can help you do 1 deal, 3 deals, 10 deals or more per month…in today’s market or in any real estate market.

This can lead to six figure profits in your first year in the business! In order to succeed in today’s market you have to be on the cutting edge. Using the concepts of Virtual Wholesaling will put you n the cutting edge and also put money in your pocket!

Real Estate Investing Expert, Charles Petty has been involved in over 700 real estate transactions in the last 9 years and is the creators of the Ultimate Turn Key Virtual Real Estate Investing Systems that work in any real estate market.

Last Updated on Thursday, 25 February 2010 19:29
 
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