Posted by NJInvestor on September 13, 2004 at 14:55:04:
When working with numbers such as 180-200K…your profit margin should be larger that 10-20K. Suppose it takes 3 months longer to sell your property, then planned. The holding cost may be $2500/month…there goes your 10K profit. I beleive 10-20K is not a bad profit for a propery purchased at 60-70K…IMHO!
“Wholetailing” Strategy??? - Posted by Joe
Posted by Joe on September 13, 2004 at 12:24:24:
My plan has been to find junkers (severe fixers at extreme discounts) to wholesale. However, I’ve been mostly coming across houses in fairly nice condition, which are maybe 10k to 25k under the market.
I know this is not enough for wholesaling, but should I try to put these under contract and then sell them EITHER to say retail buyers or various professioinal sorts of people looking for rental properties?
Say like if I buy a house worth $200k for $180,000 (not good enough for a wholesale deal) with the seller paying all of my closing costs, and then I aggressively market it to home seekers or landlords looking for a bargain? Say if I could make $5 or $10k after all costs on the deal?
I think someone called that “wholetailing” if I’m not mistaken, so I’m wondering if I could pick up a lot more properties which I would otherwise pass on, and make some modest profits, with planning on that sort of an exit strategy. Please advise.