Wholesale to Wholetale
Wholetaling a house is when you close on it, perform minimal work, and list it on the MLS. No matter how big your buyers list ever gets the MLS will ALWAYS give you more exposure. I just bought a house last Friday that I had wholesale offers on and chose to wholetale.
My original intention with this house was to wholesale it. We got the property under contract for just $0.59 on the dollar. It’s a great family home on an acre. We shot it out to our list and got some hits from flippers that would have made us 5-10k. Real Estate is kind of like poker, you have to know when to hold and when to fold.
With 20k put into the house would be TOTALLY mint. As-is, it’s cute, financeable, and ready for an owner occupant.
We decided to close and list this one as-is.
I published it to my projects page here and had the deal funded in under twenty-four hours. We paid 8% interest with one point all due on the back end.
We had the property deep cleaned on Monday and our photographer is taking pictures today we will be live on the MLS by Friday in time for the weekend rush.
Given the fact that this home is in great school districts, on land, and needs minimal work it’s a perfect candidate for a wholetale deal. The margin is also sick. Purchase price + small rehab has us all in at $120,000. We will be listing it at $179,999. The worst-case scenario on this deal has us netting $30,000. With where we are in the economy I’m about maximizing my return while lowering my risk. If my only option was to wholesale this house I would have made at best 10k. In 45 days we should pull 3x that. (YES I will do a recap with actuals when it sells!)
**Note: If this needed a large rehab I would have let someone else take the risk on.
Pigs Get Fat One Trick Ponies Get Slaughtered
You have to have multiple exit strategies in every deal you touch. If I only did Buy/Hold I would have missed out on $600,000+ in revenue in 2018. If I only wholesaled I wouldn’t have added 7-figures to my net-worth. If I could only wholesale/hold I would miss out on a lease option we are working on that will probably be the most lucrative deal I’ve done yet. (Yes there will be a post on this too lol)
Moral of the story, have options.
I had a wholesale last year that my best wholesale offer would have net us $36,000. We wholetaled for a $79,000 NET!