Real Estate Wholesaling Made Simple

How much money Should I make per wholesaling/Flipping deal it sounds like $10k is the going rate?

I know my market wont bear too many $10,000+ wholesale deals right now. Maybe a few here or there, I have had a couple of people make $40k plus. The factor that many investors fail to look at when they want to make $10k+ per deal is how many $5k-8k deals are they passing on while they are waiting for a $10k deal. I would much rather do 4x$5k deals in a month then a $10k deal every 2 months.

One huge factor that most people forget drives price besides location, and condition of the home is the amount of investor competition in the area. Too many investors make prices artificially climb. One large investor willing to except $5k a deal could literally knock every other investor out of decent profits.

When I meet with new investors I tell them my program:

1. I will tell you how much I can sell the home for when its done and how fast I can sell it at that price.

2. You tell me how much you will have into repairs.

3. Then decide how greedy you are.

I have had investors looking for a GREAT deal for months while my other investors settle for GOOD deals and are doing a couple per month.

$8,000 profit will always be $8,000 that you didn’t have before, if you see a lot of great deals then go for those, but if your 1 or 2 months in and haven’t found your $10k deal then maybe you need to lower your standards a bit.

Many rookie real estate investors use the “Waiting” game for huge profits as a crutch so they don’t have to ever step up to the plate. These rookies run around talking about being an investor, looking at homes, doing their courses, and keep getting ready to get ready. Then when people ask them how many deals they have done they can say “I’m still looking, just have not found the right house yet”.

You do need to do your homework don’t get me wrong, the last thing you need to do is buy a $200k home and make only $10k. In my market many real estate investors are waiting for some GREAT deals to come up in the nicer areas ($85k to $300k), the problem is these deals are not coming around often enough. Then when these “Super deals” do come up they are no longer “Super deals” because everyone wants them.

Meanwhile you could be buying in the “bad part of the city” where wholesaling produces less money, but higher volume availability. The investors looking in the pretty areas do not want to buy in this area because “its not a nice neighborhood”. Great for you,

So to reiterate:

Most real estate wholesalers are waiting to maybe make $10k per transaction. But, these deals come around about once or twice a month with fierce competition.

I would rather pick up 5-6 deals a month making $5-8k per deal on homes than not doing any deals at all.

I want to leave you with something to think about. “thinking about getting into real estate” for more than a month, then your no longer “thinking about getting into real estate” your just “Thinking of reasons why you can’t do it”.

To Your Success,
Eric Medemar

P.S If you want to learn how to make between $5,000-$20,000 per deal feel free to visit http://www.GreatGuruGiveaway.com (Oh, and we are giving away a FREE House)

Being in the real estate wholesaling business I have learned alot of things and this is one of them.

In order to change your life, you must first change the decisions that you make a daily basis. Poor decision making can account for up to 99% of your current position in life. In order to make better decisions we must first identify all of the decisions that we have made that have gotten us up to where we are today. Without knowing the good and bad decisions that we have made it will be nearly impossible to change our lives.

So why do you make so many bad decisions? One of the main reasons for our complete lack of decision-making ability is that our minds are preprogrammed for short term pleasure. Short term pleasure does not necessarily mean that we enjoy what we are doing. Short term pleasure can be derived simply by thinking that what we are currently doing is easier than our other alternatives. The funny part is “easier” does not always mean easier either. Short-term easy often means less effort or less immediate pain. To make things even more complicated “pain” does not always mean pain either. Pain is far too often thrown into a group with performing the unknown. It’s funny how many people would much rather have a painful “known” thing happen rather than commit to a wonderful “unknown”.

One of the tools that I have developed to get around our poor decision making skills is called the 5×5 method. Whenever you need to make a decision ask yourself 5 simple questions.

1. How will this decision impact my life 5 minutes from now.

2. How will this decision impact my life 5 hours from now.

3. If I keep making this decision, how will it affect my life 5 weeks from now.

4. If I keep making this decision, how will it affect my life 5 months from now.

5. If I keep making this decision, how will it affect my life 5 years from now.

If you can derive a positive answer to all of those questions then you can rest easy knowing that you have made a good decision.

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