5 Common Mistakes Wholesalers Make

Wholesale real estate is a tough business, but it’s less risky than investing. However, that is not to say that the process will be smooth all the time. Like any other business, it has its ups and downs. If you know what you are doing and enjoy every stage of the operation, you will find this line of work very profitable.

Whether you’re just starting out in the industry or have already been in business for years, I’m here to share 5 common mishaps wholesalers do that you need to avoid, as well as ways to prevent them from happening.

don’t overload

I understand that you just want to earn more. But if you are making unnecessary charges on a deal, then you need to reevaluate your contract. Don’t be too greedy in a deal. Instead, focus on sealing more deals and generating more from them.

Don’t Get Property Contracts That Are Too High

This is the same with signing overpriced properties. If you, as a buyer, wouldn’t take it because of the high cost, then don’t get contracts that are outrageously priced.

Don’t underestimate repairs.

Location plays an important role in linking costs. Repairs and other services may be lower in price in some areas and higher in others. It is not a one-size-fits-all system. Do not underestimate repair costs and consider it when evaluating the property.

Do not overestimate the after repair value (ARV)

The ARV calculates the future value of a property in distress once it has been repaired. After completing the renovation work, you should factor in the purchase price and the renovation costs to get a more accurate sales price.

Knowing the ARV of a property and how to calculate it will help wholesalers and slot machines see if there is enough space to make the lot profitable.

give a good presentation

You see numbers after numbers without getting a clear picture of the property. How is it assigned a more accurate and reasonable estimated value? Of course, you do your research. I suggest you attach photos and a video. This helps make the decision process faster and around the ballpark.

You will learn and grow as you go through the journey of real estate wholesale. The sooner you figure out how to avoid these mistakes, the better it will be for your business and your customers.