Real estate investors, you may want to think about having a relationship with multiple wholesalers. This way, you’ll have more options and be able to get the best deals on properties.
Transcripts:
Chris Bounds 00:00
Good to have relationships with multiple wholesalers.
Eddie Gant 00:02
Yeah, I tell you the how many wholesalers in the room I can say it, I got one, we got one back there. Here’s what you got to understand. Let me, I hate history let people don’t like history lessons is boring. Let me take you back in history from I gotten this in 99, from 99 through about 2014. You worked those wholesalers hard and you got a lot of deals around 2014-15. In their wholesalers got smart and figured out that a landlord pays them more.
Now, when you get all these messages from wholesalers, the numbers are driven by selling to a landlord who will pay more, not to another flipper. Just keep that in mind. You can, there if you want to be a landlord, there’s tons of deals you can buy that will cashflow tons, wholesalers or non wholesaler. But if you’re going to buy it with the intent to flip it quick for profit, you for the most part gotta buy a little deeper. You know you do, because you got to turn this deal quickly for cash. And you got closing costs twice, you got carrying cost. As a minimum, you got some cleanup costs, even if you don’t do any rehab, and get it on the MLS. You have to bomb a little deeper.
That bakes it in this feeding frenzy of a market that we’re in. It’s like nothing I’ve ever seen. It’s been there for a while, but it keeps getting more on fire as we go along. You know, and what I’m trying to say in a big word is you can find some deals from wholesalers to flip.
They’re harder if you’re looking to buy and hold and rent, which is, we say up here and I know branch heard this and you agree with me, you flip for cash, you hold for wealth, and I’m a walking billboard for appreciation. I’ve got a ton of them. I got over 100 rentals. And they’re worth a whole lot more today than they were three years ago. And they’re worth a whole lot more today than they were 15 years ago. Did that help a little-
Chris Bounds 02:25
Clarify or to add a few other things to that. This is also where having a real estate license can come into play. Because if you’re in a situation we’re in a competitive offer multiple offers, going in for the flip that kind of pricing. It’s gonna be challenging to win that. Not impossible, but challenging, but having good rapport with the seller and knowing the alternate alternative end games that you have, whether that’s you’re gonna hold it as a rental, landlords that would pay for it.
And you also know that, hey, this rental neighborhood, you know, it’s 1400 bucks a month, but they’re also getting to 25 a night and Airbnb. So there’s an and you can Airbnb. So I know some Airbnb folks, that they can cashflow six grand a month on this thing and they’ll pay they’ll pay almost full retail. So knowing those kinds of things. And then the final one is being an agent that Eddie talked about. On the high end 8% going to investors when the other 90% that are sincerely interested in selling, but they’re not going to sell at a discount. They really will sell there’s no discount.
You if you’re licensed you have the ability to help them and whether that’s you personally listing their house or working with some other agent on your team which is mainly what what I do you have a way of monetizing that. Or this one’s a little trick offerpad Open door they pay realtor commissions, so the seller that really wants to sell and they want full retail and they want it fast they’re on one of the best of everything easy money because you can go especially with offer pad paying 3% Commission to agents doing three no four with those right now.
It’s quite an off market. Actually our personal rental we put on there just because offer pad gave us full retail for it. And they’re paying me 3% commission so actually netted more than had I put it on auto market. It’s crazy. I don’t really I don’t I don’t get it. That’s not my job. Offer pads really not good. Hey, I don’t know. I’ll take the check.
Eddie Gant 04:47
I’ll say this. I enjoy it while you can. I know what it takes to run this business. You can’t run it on thin margin. Zillow is already out. It’s public knowledge that open doors loosened A lot of money. I don’t think they’re gonna be around. You can’t run this business on that margin. So, I’ve sold houses to offer Pat. They paid me a bunch of money and I okay it’s not my job to train them. It’s my job to fill out a proper and honest seller’s disclosure