How to Wholesale Real Estate

How to wholesale real estate can best be demonstrated with a video. While visiting my Dad on Father’s Day weekend, I stumbled across a terrific real estate wholesale deal. We were actually driving through some random neighborhoods of Nashville to simply get my daughter to fall asleep and take her afternoon nap. We had no intention of looking for a wholesale deal. That’s one of the beautiful things about real estate. Deals are everywhere!

To wholesale real estate, you need to find opportunities that most everyone else overlooks. In the video, you discovered that a neighborhood eyesore could be a dynamite wholesale real estate deal. Builders were tearing down old, dilapidated houses and rebuilding very nice homes. This is one of the most profitable wholesale niches. The key is to locate neighborhoods where the lots are about as valuable as the older houses. This usually occurs in areas where $1M+ homes can be built.

Wholesaling real estate creates fast cash. You can make quick money by flipping or assigning your interest in a deal to another buyer. The most likely buyer of wholesale real estate is an investor, or in the case of the above video, a builder. You can make even faster profits if the buyer is paying all cash. Waiting around for an investor buyer to get a loan can be frustrating.

One of the best ways to find wholesales is to drive around. When you know what you are looking for, you can spot opportunities that most other people overlook. In the video, you saw that I found a vacant, dilapidated house just a few homes away from new built homes. The only way to have learned about this deal was to have driven past it.

There are diamonds in your own backyard and real estate wholesale deals all around you. Watch that video again. That is how to wholesale real estate.

Comments

  1. Adam Borton says:

    Phil,

    Great video. Detroit is a gold mine for deals like that. Once I get enough capital I hope to buy large sections of the suburbs and give the city a nice face lift with the help of the community.

  2. AkeemSims says:

    This is a great video & example that deals are all over you just need to recognize them. The timing of the deal is very important, had they not been building at the time,the potential profit margin may not have been the same. I’m just beginning & have a peaked interest in wholesaling strategies!! Thanks for the motivation

  3. Kyle Meadows says:

    Phil,

    Are companies like Lane Guide good to use to find the owners of properties like that?

    • Phil Pustejovsky says:

      Nope. The Lane Guide is a service for mortgage brokers to get access to lenders. The best way to find those types of deals, is good, ol’ fashioned, driving around.

  4. Bill Gershenfeld says:

    Hi Phil,
    I agree!!! One of the greatest aspects of RE is deals are everywhere. I cant drive anywhere without seeing homes and saying to my wife and kids “that’s my next home”. Great video. Did you end up closing that deal?

  5. Great video Phil. l Would love to get my hands on the information to wholesale to a builder.

  6. Johnny Rodriguez says:

    Thank you Phil for this kind of training video. I enjoy all that I have seen as far from your website, can’t wait to hear from someone in the mentoring dept, I sent application . Thank you and God bless you and the family.

  7. Hi Phil,

    I always enjoy your videos. It’s nice that you finally got out from in front of the white board.

    In this video you implied that you’d wholesale the acquisition to one of the local developers. How you’d get them to purchase your contract is another whole other “tweetable” topic. This would probably not be a wholesale deal to any investor other than the developer. Wouldn’t you agree?

    Perhaps it would be possible to JV with the developer as the acquisition partner. You’d make more than assignment fees that way.

    Oh well, it was a short “teaser” vid. I’m sure you’ll provide us with a more comprehensive video on this topic later, right? You are da man!

    Thanks Phil

    • Phil Pustejovsky says:

      It’s not complicated. You simply assign your equitable interest to the developer. And GOOD LUCK getting the developer to make you a principal in the deal for simply finding it. If you don’t know what you’re doing, chances are, the developer will try to get you out of the way and buy directly from the original seller.

  8. Alfonso Clarke says:

    All the above are true, except nobody talks about the details, like what format did you use, sample,example forms for the deal/clauses etc.

  9. HapsaiGeorge says:

    Thanks a lot ………..
    i really love this video

  10. Hey, Phil great stuff. You have all these so called real estate gurus/ wholesaling experts teaching about all of these distressed properties that you can get on the cheap in these C to D areas and wholesale it to buy & hold investors or fix & flip guys and make a small spread in between that everybody is then trying to target these kind of deals and then get frustrated when they don’t come to fruition. Reason being you cant negotiate the price that leaves you enough spread, competition, and other factors not in your control. Lets face it the market is picking up a bit and the hype is spreading where people are not as desperate to sell there house as they might have been just 2-3 years ago. Now with the housing market recovering in certain areas faster than others we have a new type of cash buyer the BUILDER. They are DESPERATE for these deals and they are buying up with CASH by the numbers. We as wholesalers have positioned ourselves in the middle of it all. The goal is simple find deals in areas that fit there criteria in these A to B high end areas and these builders will pay you that spread that you are seeking because YOU know what they really want is the LAND not the house. Believe me they will pay….. Cause after they finish building it, may it be a duplex multi family or just luxury single family homes they will make their money significantly after selling it. There is enough money on the table for everyone. Phil you nailed it with this video. Would love to discuss this more in detail with you and I admire what you do for the everyday individual whose is seeking financial independence and a better way of life. Real Estate is that vehicle that can make it happen for all of you out there. You just need the right mentor to show you the way and Phil is definitely that guy. Much respect for what you do. Maybe we can put some deals together. All the best. Gavy

  11. Virginia Renaud says:

    I don’t think you like to rehab houses, but there is a certain section in town where some houses are for sale for around $20,000. I looked at them on the internet. They were built in the fifties. They have no AC. They are atrocious. The are in a poor section of town. I have not had my son-in-law, who is a contractor, and has built houses, look at them to see if they are worth bothering with.
    I have to find out if the city, is interested in improving that area of town. If they are, would it be possible to see if I could get a low interest loan from the municipality, the state and federal government?

    • Phil Pustejovsky says:

      I have several rehabs going right now. You are certainly encouraged to research if their are any special renovation programs to help revitalize an area of town. Those programs usually require you to bring considerable cash to the project and it may be easier to go non-government in funding the deals you do.

  12. Roy Hagerman says:

    Hey Phil, what an outstanding wholesale program to put into play in some of these older neighborhoods, especially where I live!! Is there anyway you might be able to put a percentage(ballpark, of course) of purchase cost, on the flipping of these properties?? I’m just interested in knowing the kind of profit that could be made, with this type of wholesaling!! Great potential, no matter what!! Thanx for the insight!!

    • Phil Pustejovsky says:

      It all depends on what you can negotiate but you should be able to make 10-15% of the sales price in most cases.

  13. Vincent says:

    How do I become a Bird-dog?????

  14. AA Acquisitions says:

    I have found 3 properties and 3 acres of land that the owner lives on. I have found out how to increase the rents to 30,000 a year on each 4 bedroom. These houses need complete rehabs of 50,000 to bring them to these requirements. To get financial assistance in this project does it have enough merrit to considere this as a good investment. The profit margins are
    very good and the renters are people on fixed incomes for there pensions. The
    total monthly income is 12,000 to 15,000 per month. Do you have any ideas on getting this start up business going and increase the total number of houses to 10. Please give me your thought on this.

    • Phil Pustejovsky says:

      The rents sound WAY too high. A 4 bedroom single family home renting for $5,000 per month?

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