Remember this couple from our article last month? The two people sitting on their front porch, with boxes packed, and obviously getting ready to move?
Imgagine it’s now a month later and they moved. New owners are all ready to renovate the house and move in themselves.
But, did you know that the new owners never even met the old owners? The new owners discovered the property through a “wholesaler”. The wholesaler put the property under contract and then took that contract to the prospective buyer to see if they were interested. They were excited.
The new owners paid cash for their house, and plan to refinance after they renovate the property.
This type of transaction takes place all the time. People just don’t know about them.
As renovators, we buy property that is “off market” all the time. It’s totally legal. We pay the county transfer taxes, file a deed, get insurance and all the other stuff that takes place in a “normal” realtor assisted transaction.
In fact, about 9 out of 10 people use a Realtor when they buy a home. But that leaves 10% that don’t use a Realtor. When you think about it, that is a lot of transactions that do not go through the agency system.
It’s a huge market and one most people don’t know much about. Lucky for you, we are continuing to talk about the wholesale process at WREIA this month. Last month, we just had too much to cover, and halfway through I decided that we would be extending the topic over into our May meeting. Nearly everyone at WREIA last month agreed, “Let’s slow down and go into more detail.”
I have been buying homes at wholesale rates for nearly two decades. I have a lot of experience both buying the homes directly, as well as working with other wholesalers who have originated the deals themselves. In fact, I do a lot of deal with other wholesalers in the DC area. They bring the deals, I bring the transactional experience along with some capital, and we mix up our contractors. We complete the project, and finally we both are happy when a retail sale is made.
I get excited talking about wholesale real estate. And that is exactly what we are going to continue talking about next Monday night at our next Washington REIA meeting.
Monday night is just good old fashioned learning about this business, with some terrific opportunities to network with other people working real estate right here in the DC area.
Come join us Monday night. You will be glad you did.
And remember to bring your wholesale real estate deals. Last month we had a few local deals get started AT OUR MEETING. Don’t be surprised if you learn about an off-market wholesale deal from another one of our members this month too.
Join us at WREIA Monday night May 19th, and let me know if there is anything I can do to help you and your business.