Why All Successful Real Estate Wholesalers Must Have Access To Private Money
One of the reasons I have a successful real estate investing and real estate wholesaling
business today is because I have made a lot of mistakes along the way and, more importantly, I have learned from those mistakes.
You don't have to make the mistakes I made.
You can skip the pain of learning the hard way by reading about my mistakes and what I did to fix them.
Did you know that if you lack the cash to close you are at major risk? Wholesalers, you've done your job, you've built a buyers list and you've found a great deal. But now, if you don't get a buyer on the hook to purchase your deal quickly and do not have the cash to close the deal yourself, you've got a problem.
What are you going to do with your deal if your buyer does not come through and close your deal? If you don't have private money or cash available, you might end up in serious trouble.
You might lose your earnest money, you can damage your reputation and you WILL lose your profit. That stinks. I ended up getting screwed early in my real estate wholesaling career because I didn't have access to private money.
Let me share the story about how this happened to me early in my wholesaling career. I put a great property under contract and then sold it to another real estate investor.
We had our double closing all set up and I was ready to go. But, guess what, my buyer had a hunch that I did not have the private money to close on the property and he stalled. He did not close.
He went behind my back causing me to lose the deal and my non-refundable earnest money. It was a tough lesson that hit me right where it hurts, in the bank account! I could have prevented this if I had private money.
Now, most cash buyers value the services of real estate wholesalers. But, there are unscrupulous people out there so beware and be prepared with your own private money.
You must maintain control of your deal. That means you must have private money or quick access to cash available as a backup if your deal doesn't close with your buyer. Don't leave anything up to chance.
People are good and honest for the most part, and they value you as a wholesaler. But, you must be prepared with private money if things don't go according to plan.
You don't want to have to completely depend on someone else for the deal to go through smoothly and to get your payday. The trick is to maintain control of the deal, manage your time lines, deadlines, inspection periods and have access to private money. And just in case things don't go as planned, you must have access to private money as a backup.
If I would only have had private money for my earlier real estate deals I would have made more money. If I would have been able to close on that deal, I could have maintained control of that property with a contract and closed.
You must get access to private money so that you can close a deal yourself if needed. Then and only then are you truly in control of your own real estate wholesaling business.
by: Rob Swanson
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