The Wholesaler’s Deal Machine

Just wanted to drop a quick note on how the business of a wholesaler works. There is one key word here…VOLUME…

The reason I decided to write this is because I just got off the phone with a seller on a deal that I am working on in a virtual market. Drop me a comment if you want to know more about what Virtual Investing is.

The short story is that I have a buyer who is ready to go at 45K. I offered the seller 30K because it is in need of some serious work. I just got off the phone with him and he said he would take 35K. Do I do the deal? There is another factor here though. I have 2 other partners on this one. One partner is somebody that I have teamed up with on some marketing costs and the other partner is the investor that is bringing in the buyer.

So basically 10K split 3 ways is 3300.oo or so. I thought to myself “Should I go back to the seller and hit him for 32K or go back to the investor that is bringing the buyer to take less of the deal?”

The answer is that I should just take the deal and take my 3300 so that I can build my relationships with the investor who brought the buyer so I continue to do future business. One thing that is very important in this business is to build relationships! They will keep you in business.

So anyway that deal for 3300 with another deal for 10K and another deal for 10K is what 23,300? This is the wholesaler’s deal machine. The little deals keep you in business to get to the bigger checks. You know I have not had a 20,000 deal in a while and it starting to get on my nerves. I will keep you posted though 🙂

Keep on Keepin On

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  • Alex,
    You are too right. There is a prevailing attitude amongst investors that makes them think that they have to get rich on every deal. An investor must value a deal with the long-term return on relationship in mind, being always weary of reciprocation or the lack there of, respect cannot be one sided.
    There are so few professional, competent, and courteous investors out there that you can really become a stand out with relatively little effort. Everyone seems to talk win-win but behaves very adversarial. Do the right thing even when no one is looking and you’ll get noticed.
    I am very interested in your system. I’m a direct buyer. I would love to look at some of your deals.

    Justin Pierce
    Snow Goose Homes LLC

  • Curtis Brown

    Hey Alex thats some goof advise that you gave with taking alot of small deals to keep the money flowing and building relationships. Keep the advise coming.

    YOU THE MAN!

  • Curtis Brown

    By the way I meant good advise. I was typing to fast.

  • Hey Alex,
    Great Post; I had the same thing happen to me today, my buyer wanted a price reduction by $4k and my seller would not move on the price. So I had to cut my profit by that amount to get the deal done. I got two $1000 Earnest money checks {because it’s two houses in the deal} from my buyer & started the process to rolling. I was to make $9k but $5k is better then nothing anyday. Also my buyer has another friend that wants to but 5 houses 🙂 so I’m with you on volume!

    Ben Wilson
    Memphis Tn.

  • Gina Bowman

    WOW! This is amazing. I would love to know how this system work.

  • admin

    Hey Gina good to see you on the site….wholesaling houses is definitely the way to go!

  • admin

    Hey Ben good to see you on the site too….there has been another development with that deal that I am working on…I will probably post on it a little later.
    Glad to see you took my advice on getting your mailings up and running I am sure there will be a deal in there somewhere. Also…I will doing what we talked about
    when I get back from NY.

  • admin

    good to see you on here Curtis! Keep checking back with the site as I will have more updates and more information as I go along. Let me know
    if I can answer any questions for you.