Take The Guess Work Out Of Your Wholesale Property Purchases

We have become very concerned by the number of readers writing to us asking how to determine which are the wholesalers(*) that can be trusted. Why are we concerned? Because when we dig a little deeper, we realize that they are buying properties based solely on the recommendation of the wholesaler. They're guessing which ones to trust, and which houses to buy. That's a dangerous way to do business.

Are we saying that most wholesalers will take advantage of you? Of course not. We believe in wholesaling. We wholesale many deals ourselves every year. Frankly, the majority of wholesalers are honest, and try to provide data that is as accurate as possible. The problem is twofold: first, wholesalers are sales people and present deals in the best light possible. The Buyers still need to do their due diligence to make sure the deal works for them. Second, wholesalers can only provide what the average renovator may incur as expenses. Your individual, specific expenses in any given deal may be higher or may be lower. It also depends on what exit strategy you're planning. That's why two investors can analyze the same deal, and one decide that it works great, and the other decide there's no profit. Both views may be correct since everyone's individual costs vary.

When you purchase any property, you have to calculate your own specific costs to determine if it is a good deal FOR YOU. It could be a great deal for many investors, but not for you. Only you can make that determination. Conversely, other people may have to pass on a deal that you, because you may have better resources available, will jump on the opportunity.

You also have to evaluate the After Repaired Value yourself. We still hear buyers talking about getting an appraisal to determine the value. An appraisal is a tool for the lender ? NOT for the investor. Appraisals are an art, not a science. We could bring three appraisers to a property, and get three different values.

Therefore, it's up to you to do your homework and figure out the right value. The question is: "What will this house sell for when the rehab is complete?" You obviously do not want to use as a comp the one home that sold significantly higher than all of the others. But by the same token, don't use the lowest values either ? you'll never buy a house. We use the highest price cluster of similar homes we find in the area as our comps. This is the most realistic version of what you can expect in the marketplace. We do not under-value the property making it impossible to buy deals; nor do we over-value the property potentially resulting in no profit.

Use the information the wholesaler provides you as a guide to determine which deals to pursue, but then do your own due diligence. Determine your own specific costs, and determine your own property values. Don't guess whose numbers are correct. In the long run, you'll be much more successful as an investor.

(*) Wholesalers are investors who market extensively to attract motivated sellers, get the property under contract, then sell the deal to other investors who will fix up the property and re-sell to owner-occupants.

Best of success & abundance,

Lou Castillo

FREE! Real Estate Investing Secrets To Earning $100,000 Your 1st Year! -- 11 Overlooked Real Estate Statregies That Will Turn Your Investing Business upside Down And On The Fast Track TO Success...Guranteed! Plus A Bonus Track With A Secret So Successful It Can Double Your Investing Income Overnight!

http://www.InvestorSuccessTactics.c om

---

French Property - a Buyers Guide to Purchasing Property in France

The CompromisThis document is the document you will sign agreeing... Read More

Real Estate Investing - Makeovers vs. Flipping

Please don't call it "flipping."Some real estate investors who practice... Read More

Buying A Home ? Rain, Sun, and Weather Issues

When buying a home, it can be easy to overlook... Read More

Is It Wise to Take My Home Off the Market for the Holidays?

Let's say you've had your home on the market for... Read More

What Should I Do If My Home Isnt Selling?

Suppose you've been trying to sell your home for months.... Read More

Real Estate Investing Skill Acquisition

Real estate investing is not in any list of high... Read More

Home Selection Checklist - A Good Aid When Choosing a Home

This home selection checklist is a tool to help you... Read More

Let the Broker Show the House

Of course you're curious, and you'd like to see what... Read More

Late Mortgage Payments Sabotage PMI Cancellation

There's something you should know about PMI!Private mortgage insurance is... Read More

The Costs of Transforming Your Home into a Buyers Dream House

Turning your house into the home of a buyer's dreams... Read More

Practical Advice for Finding Irish Castles for Sale

Have you ever wondered what it would be like to... Read More

10 Important Tips to Successful Real Estate Investing

When it comes to investing, everybody has certain goals and... Read More

Real Estate Investing and Home Ownership

If you already own your home, you will probably make... Read More

Find the Right Apartment Quickly and Easily Using an Apartment Locator Service

You've probably seen the ads or heard about apartment locators.... Read More

Why Move to the Poconos?

Awaken to the sounds of softly rustling trees and tranquil... Read More

Death, Taxes, and Foreclosures

So how do you find the best foreclosures. Its not... Read More

How to Create Cash Flow Out of Thin Air!

Want to see a trick every real estate investor will... Read More

How To Realistically Get Started As A Real Estate Investor

When it comes to real estate investing, most beginners find... Read More

Farm Expired Listings For Big Commissions

Many real estate agents begin and sometimes sadly end their... Read More

How Can the Average Person Build Wealth in Real Estate?

Books on real estate are a dime a dozen-and most... Read More

Buying a Home with Zero Down Payment in Irvine, CA

Years ago, the only person that could buy a home... Read More

Real Estate Investors - Red Alert

How's the real estate marketing doing? Is the huge jump... Read More

What to Look for in a Home

Searching for just the right home can be very exciting.... Read More

High Tension for the Buyer and Seller of Real Estate Can Be Reduced

Tensions can run high in both the selling and buying... Read More

Are You Really A Twenty First Century Investor

Today's residential real estate market for investors has become very... Read More

Finding the Right Buy to Let Mortgage for Your Investment Property

Finding the right buy to let mortgage is crucial to... Read More

Preparing for a Showing

As soon as you decide to put your home on... Read More

Selling Property - Valuing Your Property

Selling property privately has many advantages over using an estate... Read More

Howard Stern is Hot in Real Estate

Howard Stern has over 20 property related files in Queens,... Read More

Coming to Las Vegas ? the Las Vegas Real Estate Boom

Nobody seems to be 'Leaving Las Vegas' anymore ? in... Read More

Why Average Sale Price Statistics are Misleading

One of the most common statistics used when gauging the... Read More

Apartment Loan 101

So you're interested in going into business as a property... Read More

Termite and Moisture Damage Not Reported

I have done so many appraisals where I saw obvious... Read More