On this episode of The Flip King you’re going to get an earful from Joe as he responds to a scenario that somebody asked him about early last week. The situation involve the purchase of a house that the questioner wanted to purchase and flip with very little in terms of repairs. His question was whether or not he should execute on the deal and make an offer. Joe’s rant today is in response to his question, because there was no way that Joe would ever make an offer on the deal as it was described to him and on this episode he’s going to tell you why.Why making good offers on #wholesale properties is not a complicated thing, on this episode Click To Tweet
How are you determining what you can offer on a wholesale real estate deal?
Do you just fly by the seat of your pants? Do you shoot from the hip? Do you do what you feel is right in your gut? None of those things are available to make an offer on a potential wholesale property. You need to know the hard-and-fast numbers that are going to be a part of the deal and whether or not they are something you can live with. You are in this business to make money, and your goal is to make offers that will make you money. If you can’t do that, you have no business being in the wholesale real estate business. On this episode it was going to walk you through his simple formula for making the right offer on a wholesale deals every time.
Don’t think that you can purchase a property profitably if you only have a $20K spread.
Imagine that you came across this scenario: A property in a great neighborhood is for sale for $170,000. You do the research on the neighborhood and the property values in the area and discovered that the property could probably sell for $190,000. Wow! You could make $20,000 for doing nothing. Or could you? On this episode of the podcast you was going to tell you when the answer is, “NO!” and why you should never make an offer on a spread that small. If you don’t know these important things you will get yourself into a hole that you can never get out of. Make sure you listen to this important episode.How you can make the RIGHT offer on every #wholesale deal, on this episode Click To Tweet
Why you need to make more than $10K on every single wholesale deal.
You work as a wholesaler in order to make money, right? If you’re not, why are you in the business at all? Joe has learned over the years that is OK to make $3,000 or $5,000 on one deal. But he believes that if that is all you were trying to make you are thinking far too small. His goal is to make at least $10,000 on every deal and even more if possible. On this episode he’s going to tell you what is behind that mindset and how he goes about making sure it is the case in every single opportunity. If you think you might be thinking too small, Joe has a lot to say to you on this episode.
Joe’s simple wholesale offer formula.
In order to make an accurate offer on any wholesale property you have to know exactly what you can live with. Jose formula for doing that takes into account the cost of the property, the cost you are going to incur in trying to purchase and sell the property, any rehab cost that will be involved, and the most important thing of all, the amount of profit you want to make as a wholesaler. If you don’t know all those numbers, you have no business making an offer on any property. Joe is going to walk you through his simple formula on this episode of the podcast and give you his tips on how to use the formula to your greatest advantage.If you don’t follow this formula for making #wholesale offers, you’ll bankrupt your business Click To Tweet
OUTLINE OF THIS EPISODE OF THE FLIP KING
- [0:43] The importance of the numbers.
- [1:31] A scenario that was posed to Joe – what should I do?
- [4:02] Joe’s formula for making a good offer.
- [6:15] Why making less than $10,000 is thinking too small.
- [7:00] The power of the numbers: What they tell you and why you need to listen.
- [8:32] Why you HAVE to think about the “What ifs” that will arise.
- [10:00] The importance of keeping things simple.