Most real estate investors who practice “wholesaling” (finding deals and flipping them to other investors), can make a few adjustments to their current business model, reduce their risk, and watch their profits soar. If you haven’t heard of reverse wholesaling, let me explain why the previous statement I just made is not only a fact, but why reverse wholesaling is the ultimate strategy in real estate investing.
Usually, wholesalers find really good deals, then, look for cash buyers. Sometimes, these investors run out of time and lose deals because their contracts expire. Reverse Wholesaling works like this: First you build a massive “cash buyers” list, survey those buyers, and find out exactly what they are looking for. Some examples would be: areas they are interested in, price range, and how much in repairs they are willing to accept.
Regardless of whether they are rehabbers, or buy and hold landlords, once you have found out what your investor- buyers want, you then go out and find the properties for them by focusing the majority of your advertising dollars in those areas. If you think about it, reverse wholesaling really makes a lot of sense. Not only are your properties sold before you get them, but your advertising dollars are focused in areas that you already know are hot.
Wholesaling in general is already a low risk strategy. Reverse Wholesaling just takes the little risk that does exist and makes it virtually non – existent. Very rarely will you find yourself stuck with a property, especially if you know how to build a targeted list. The term responsive would probably be more accurate, when describing a very good buyer’s list. How do you get these buyers that you know will be responsive? You have to find the investors in your area that have bought properties and paid cash, with no financing involved. Or those who have bought multiple properties recently, usually within the last six months.
By Connor Thomas