Can’t Sell My Wholesale Deal, Now What???

Have you ever tied up a deal that you thought you were going to be able to wholesale and make some quick cash, but it just didn’t work out that way you thought??

Is this a reason for you to throw your hands up into the air in despair and say to yourself, “Wholesaling doesn’t work, I knew it!”

Well watch this quick video as I shed some light on the subject

3 Things You can Do to Protect Yourself in a Wholesale Deal

1. Make Sure You are Contracting the Deal Correctly in the First Place

Take the ARV (After Repaired Value) of the property and follow the traditional wholesaler’s formula

150,000  X .70 = 105,000 – 30K in Repairs = 75K  You wanna make 20K? that means you must buy for 55K

Always assume high on repairs…. 15K minimum is always a guideline to follow even when the seller tells you it is in GREAT shape..lol

2. Make Sure You are Working with REAL Buyers

Make sure you are dealing with buyers that are ACTIVELY buying in today’s market.  You will waste your time dealing with wannabe’s and investors that don’t have their financing in line. You can use Listsource.com to locate these people. Just look for different mailing addresses for the taxes rather than the actual property address

3. Give Yourself an “Honest Out” of the Deal

The beauty of wholesaling houses is that it has little to ZERO risk when it comes to real estate investing. The goal of this is not have a “weasel clause” but to have an honest agreement between you and the seller. This will give you an honest out if you cannot find a buyer for the deal and wont tie up the seller for more than a couple weeks.

Quick Courteous Tip

**** Do not tie up properties that are in foreclosure or situations where the seller is on a tight deadline unless you are 99% sure you can move the deal***  Just do the right thing 🙂

Oh and please let me know via comment below if you would like to know more about the yellow letter when it comes to marketing to motivated sellers…

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  • Darlene

    Alex, you just gave a lot of info that may so-called guru’s charge an arm and a leg for. Nice going. I thank you for your honesty. I bought your and JP’s “Sneaky Little Wholesaling Tricks”, as always—Great!.
    I would be interested in your yellow letter info.
    Have a great investing day.

    Darlene

  • Darlene

    Alex, also, congratulations on the news of your new baby coming. That’s always exciting to hear. I know you are excited as well and you’ll be an excellent father to this one as well. Best wishes to you wife and take care and God bless. Darlene

  • Dale

    Hey Alex,Nice Vid. I’m interested in hearing a little more about the yellow letter.I recently had a deal that I had to back out of.Hope to hear from you soon with sum more cool wholesaling videos.

  • Erby

    Hey Alex, good to here from you again. I actually had to back out of a deal for the first time last month. The numbers seemed good but no one wanted to touch it. I only had a 7 day inspection so I contacted the seller within that week and told them that I wouldn’t be able to do the deal because the repairs came in higher than expected. Because I got back to the seller within a timely manner they understood and voided the contract. Interested to hear about your yellow letter trick.
    Thanks!

  • Dave

    Thanks for the tip Alex. I also bought the 17 wholesaling tricks. I am very much interested and any more you have up your sleeve…lol

  • JD

    Thanks for the tip ( I wish I had know it a few months ago). I have already learned part of your tip the hard way. I found myself in a situation where your #3 rule was not structured as it should be. My learning curve improved after that however on my last 3 deals. I structured it as you have suggested. I call it my $3K rule (that was how much I lost in that first learning experience when the deal fell through).

  • Great info…I’d like to hear more about your yellow letter.

  • Cody

    Nice tips, keep them coming our way, so what is this yellow letter you speak of lol ?

  • JR

    You give a lot of great info,thanks. How can i get that yellow letter you send out. I have been trying to make a deal for a while and no results.

  • Archie

    Hey Alex,

    I started wholesaling recently, one deal i have under contract right now i have found a buyer for. The problem is on one of my deals the seller has a 30k judgement for unpaid credit cards. I contracted the deal for 15,500 and found a buyer in 2 days for 20k. Is there any company you recommend for reducing judgements so i can get this deal done and collect my check? Also I am very interested in the yellow letter.

    Archie

  • Thanks for the info, Alex! I always look forward to reading your blog!

    If you think it’s worthwhile to talk about yellow letters, I’m sure I would love to hear it!

  • Aaron

    Hey Alex,
    It’s Aaron….Thanks so much for the response….I really appreciate it…I think the most valuable part was adding the the inspection clause to your contract and indicating to the seller that you need time to do your due dillegence. Execellent wording.

    Thanks for your time.

    Aaron

  • Aaron

    Congrats on the new addition to the family as well.

    Aaron

  • can you cover the way a postcard should read to buyers

  • stephen

    i would like info about the yellow letter

  • Jason Donnell

    Well presented and put together. Thank you very much for all of your insight. I’d love to hear more about the “yellow letters”. Thanks again!

  • Hey Alex, Thanks for the info, I would like more information about the yellow letter. I am also from the 757 (Hampton)and I am new to wholesaling, I am working with a local mentor but always open to some good information!!!!

  • Nice info but in today’s market, paying 70% of ARV minus rehab costs is paying too much. Deals abound at 55-65% of ARV minus rehab costs in my area for us rehabbers, so wholesalers better bring us better deals.

    Always appreciate your blog. You are a wealth of great information!!!

  • Matt

    Good deal Alex. Always like hearing the stuff.

    @Archie (and anyone on this)…if that much of a judgment is filed, and it’s attached to the property, then it can complicate things. While it appears it got your asking price lower, the selling price is still lower than what’s owed.

    Depends on who filed it and when…the same creditor or different ones? Just recently or are they getting old? If different, then your settlement might be a bit easier to get lower on each one…but more work because of multiple parties. If the same, they may take the 20K and the homeowner is still liable for the balance…or they could take the 20K and call it even.

    Have the homeowner call and settle. When you settle, always max out at 50% with credit cards…but go lower, say 25-30% to start…especially on a high amount like that (creditor won’t know off the bat that the house is being or has sold yet, so don’t say that). If the homeowner can get the money together separate on a settlement, you can get it paid, filed in the court to clear things, THEN have the house sold…takes a bit longer but could make things easier in the end, and the homeowner could get a better settlement and at least get a little money in their pocket.

    No one way when settling credit card judgments……

  • Laura

    I have a few questions:

    * Do you know or do you know of anyone that has a listing, by state, showing which state does closing at title companies or attorneys?

    * Are all title companies/attorneys trained to do wholesaling/simultaneous/double-closings?

    * If not, how do I find one that specialize in wholesaling?

    * Al…so, I’m looking to do wholesaling nationally in all 50 states. Must I have 50 attorneys/50 title companies?

  • John Thein

    Hey Alex!
    Nice blog…keep up the great info.
    I was thinking of putting out bandit signs to find deals. Seems like every investor I’ve talked to said they get great results with signs. Have you tried using signs as a marketing tool?
    See ya

    John Thein
    Dubuque, Iowa

    p.s. There is a investor in Houston, Jon Kubas, who puts out about 100 signs a week. It’s his only source for deals!

  • Great info in the video. I will use the info with sellers from now on! would like info on how to mass produce yellow letter as well.

  • bob

    peace

  • Hi Alex. I always enjoy your blogs. Thanks for sharing. I’m still at the “stuck” part on making offers. I know this sounds crazy but it keeps playing in the back of my head that I shouldn’t “take advantage” of sellers. Then the little voice says ” it’s up to them to say “no”….they don’t have to accept it”.
    Do you make offers on anything on the MLS? Or do you strictly go with private sellers? Thx,

  • Your videos are awesome, I like learning this way.
    Was the 150.000 you talked about the sellers asking price before the ARV. Formula ? So were offering 55,000 for a 150.000 property?
    I would love to see how to mass produce the yellow letter in a video also.

  • I think the info. content is great keep it up. i will love to no about your yellow letters to seller and buyers if you mine.

  • Hi Alex
    Great video, I am interested in how to mass produce yellow letters for buyers and sellers

  • Pwi Cody

    Working on streamlining the yellow letters for different markets. Any suggestions to mass producing these without having myself or someone making a bazziliion copies?

  • Alex, first time I’ve been by your blog. Surprised I hadn’t found it until now. Good stuff.
    Great tips that you gave — sometimes you just can’t sell a deal no matter how good it is. Sometimes it’s just a timing issue with buyer and their financing. I’ve had one month where my buyers were drooling and I didn’t have anything for them. 2 weeks later when I had a hot deal, they were tapped out.
    But if you can get creative, you can still wholesale it! We closed on the deal (yes, it was that good) with a local lender in town. We are taking a down payment from our end buyer as our fee and he is taking our place in the loan.

  • Well presented and put together. Thank you very much for all of your insight. I’d love to hear more about the “yellow letters”.

  • Dinah Jewel

    Yellow letters…hmmmm 😀 good stuff. Thank you! 😀

  • Rob

    Great stuff please give me info on the yellow letter thanks

  • Rob

    Great stuff please give me info on the yellow letter thanks

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  • Vince

    Alex: Would like to receve info on your yellow letter. Thanks, Vince  Wozniak

  • Beverly

    Thanks Alex I would like to receive your information and congrats to you two on the new baby coming!