Real Estate Investing Courses: Is Now A Goodtime To Wholesale?
Posted by ericmedem | Posted in Wholesaling Real Estate | Posted on -05-2008
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Is Now A Good Time To Get Into Real Estate Wholesaling?
It seems like everyday I get at least 5 people asking me this perplexing but very simple to answer question. My answer is always the same. Of course right now is a good time to start wholesaling!
No I don’t say any of this to sell another investing course. If I thought wholesaling was stupid I would just make a new course on a better strategy. Anyway, back to my point
Yes our economy is in the gutter.
Yes our housing market sucks
Yes investor all over America are losing their a$$es
Yes people are running scared.
All of those conditions make it the perfect time to wholesale real estate. Why?
Think about it like this:
Example #1
In a good real estate market home A is worth 100k.
Wholesalers would try to buy at 70k or below.
That is based on buying homes at 70% of current market value.
In a bad market home A is worth 80K
Wholesalers would then need to buy at 70% or less of 80K $56,000
That is based on buying homes at 70% of current market value
70% of a homes current value is still going to be a great deal even if the market completely has bottomed out. Because as a wholesaler you are looking to buy at 70% of the CURRENT market value.
Investors and retail buyers still love to sweep up deals and 70% of current prices, because 70% is still a great deal. Do you follow?
Many rookies mistakenly believe that since homes are selling for 30% less this year that somehow there are just too many good deals already and wholesalers aren’t needed. Nothing could be further from the truth.
Wholesalers still need to put homes under contract using the exact same formulas as before except we need to be careful to adjust our offers to CURRENT market value and not the value that COMPs Are showing.
Anyway I hope that helps.
Lastly, we are getting closer to giving away a free house at our house raffle, don’t miss your chance
