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The Top 3 Reasons for "Failure to Launch"
Wholefailing PROVIDED BY VENA JONES-COX
Go to any real estate association
very basic: that buyers don’t just write a
"doesn’t work’.
anywhere in the country, and you’ll
check because the deal is available, or
meet endless excited folks who are
cheap, or even because it’s cheaper
They don’t learn the most basic thing
sure that their futures—and fortunes—
than other properties that might be for
they need to know: how to evaluate
lie in wholesaling houses. Go back 6
sale in the same area.
properties correctly.
those folks have never successfully
Buyers for wholesale deals are real
Ok, so you get it: the deals you offer
closed a deal. In most cases, this isn’t
estate investors, right? So in order to be
have to be priced at no more than 70-
due to “inactivity” or “fear” or any of
interested in a deal, the deal can’t just
75% of the after repaired value of
the usual excuses. Many of these folks
“make money”; it has to make ENOUGH
property, so that the buyer feels
have actually tried, and failed, to make
money to provide a satisfactory return
compensated for his investment, and
a go of it. In my experience, there are 3
for the cash, and hassle, and time, and
that’s the deal you’re offering.
main reasons for this:
energy, that the buyer will have to put
months later, and you’ll find that 90% of
into it. No investor buyer HAS to buy a
Or is it?
They don’t understand WHY
house this week; if he doesn’t see one
wholesalers make money.
that gets him a return that turns him on,
One of the most common mistakes I see
he can just keep looking.
the ‘YouTube University’ crowd making
They understand, at least in a basic
is that they have no real handle on how
sense, HOW it happens: you put a deal
Wholesaler wannabes who don’t
to comp properties, inspect them, or
under contract, and you find someone
‘understand the motivations of their
estimate repair costs. Someone online
who wants to pay more than you did,
buyers well enough, and therefore end
told them that a property is worth the
and that “more” is your profit.
up spending weeks trying to flog
Zestimate, or the Zestimate – 10%, or
contracts to an unresponsive audience,
the average of the values on Zestimate,
end up frustrated and convinced that it
Realtor.com, and Housevalues.com.
But they don’t understand something
