Wholesaling can be nerve-wracking especially during the initial stages where you will have to build a network of cash buyers and build up your contacts. Oftentimes, the sellers whom you are associated with are not in the best situation and rely upon you to execute things for them. So, as far as success in this niche industry most importantly depends on how well you treat your sellers, this piece of writing will reveal some tips how to protect your seller and build goodwill.
Now let us have a look at how Arizona real estate wholesalers can protect their sellers.
- Price it right- Pricing the ARV is very important. There is a chance for you to run the risk of running into a situation where you have no scope for negotiation or operation to modify a previous decision, if you overestimate or overprice it.
- Verify your buyers to avoid last minute hassles- As a Arizona real estate wholesalers, you may not be representing your sellers, but you still want to take care of them, in order to ensure a great deal. The other half of the battle is enlightening buyers that you can trust, but this comes only through understanding the concept clearly and through experience. However, you should be succinct where once you assign over a contract. On the other hand, if it is a new buyer, then you should verify funds. This will save you a lot of trouble times.
- Don’t try to strike it rich on every deal- Do not expect to make a direct hit on every contract that you come in contact with; this is not achievable for many newer wholesalers because of several reasons. This is a setback for newbie’s who get fortunate and hit a few deals out of the park. Over and over, they go forward expecting to make the most out of every contract for as much as they think they can get out of it, even though the numbers do not shore up. As an alternative, new Arizona real estate wholesalers should have a provisional goal of constantly closing on 2-3 houses a month for a modest assignment fee. Having said that, if a chance presents itself where you can strike a deal and make more than expected, then, go ahead, however, it is suggested that you do not force outrageous assignment fees on every deal. Doing so will result in a complete mismanagement and it can really screw the sellers and end up in a contract that never makes it past the closing table.
As a wholesaler, your success also depends on your seller’s level of success, so you need to take good care of them such that you will be well on your way.