RETAIL AND WHOLESALE REAL ESTATE FOR REALTORS ® & INVESTORS LEX LEVINRAD
In wholesale real estate, a whopping good deal is
have lots of cash. So if you are a real estate agent
a deal that you need to buy right now before
and you are going to talk to cash buyers, you should
someone else does. The big dilemma is that too
know at least as much as they do.
many real estate agents don’t really understand
what a good deal is. You need to have a sense of
You need to understand the language of wholesale
urgency in wholesale real estate. You need to
real estate. You should know terms like After Repair
make a decision to buy right away if you see a
Value (ARV), how much it would cost to repair a
good deal. If you don’t, someone else will.
house, comparable retail sales and wholesale prices.
Imagine if you will that you are a wholesaler and you
You see, in wholesale real estate, it is not the
have a smoking hot wholesale deal that every cash
customer that is always right. It is the repeat cash
buyer would want. And imagine that you have a huge
buyer that buys again and again and again from
cash buyers list of 20,000 cash buyers. Do you think
the same seller. That is why the same cash buyers
it would be difficult for you to find a buyer that wants
buy multiple properties from wholesalers and
the deal? Of course not! The first cash buyer that
listing agents. Ask any wholesaler that is flipping
you called would want the deal. It would be sold on
10, 15 or 20 houses a month to cash buyers. They
the first phone call!
will tell you that they have cash buyers that have
bought 20 or 30 houses from them in just one
Do you see the difference between wholesale and
year. These cash buyers are sophisticated and they
retail real estate? I hope this article helped you.