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Hey, hey, hey! It’s “The Maestro” here, Andrew Massaro, back with another killer flip lesson.
So you already know about my mad wholesale coaching skills from those awesome previous lessons, and you know I’m an expert in quick flips and fast cash. You’ve listened to my training calls, and you’ve applied what you’ve learned to your own wholesaling businesses…
And PS, you rock…
But did you know that I’ve also got psychic powers…
Okay, okay…so I may not be all about reading palms and predicting your future, but I can tell you this: I’ve learned over the years that before you contract on a home, you’ve got to get inside the head of your cash buyer. More importantly, I’ve learned how to do just that without them even knowing it.
You Don’t Need a Crystal Ball to Know Your Buyer
Getting inside your buyers head...
Sound like a skill only for “the gifted,” “the special” or “the paranormal?”
Hardly.
Truth be told? It’s a skill we can actually all master.
You need to calculate how much cash your buyer is putting in your property. Know what kind of dollars are required for repairs taxes, and insurance. Remember, you don’t have to worry about a mortgage payment, because you’re only dealing with cash buyers, right?
Here’s a key question you’ll want to ask, again, before contracting...
What’s your property’s neighborhood like?
If “the hood” is busted, chances are your buyer is going to rehab the property and rent it out. If the neighborhood is decent, your buyer will most likely rehab and sell.
Makes sense, right?
Look, it’s all about knowing in advance what your buyer plans to do with their properties. That’s the magic bullet.
Not only will this streamline the buying process, making life easier for everyone involved, but it will help you avoid contract cancellations, which are a waste of time and money. I despise contract cancellations! Seriously, I can’t say enough bad things about them… but knowing what your buyers plan to do before they do it will alleviate the strain and stress of last-minute contract cancellations.
Once you have the 411 and you know what kind of property you’re dealing with, you can easily calculate cash buy, plus repairs, plus taxes and insurance, minus rent revenue, plus minor repairs or updates throughout the year.
Then... and only then... can you know with confidence that the property is a good buy for HIM... not for you. If it’s go time, contract on it and present it to your buyers along with the expected annual profit.
One More Quick Tip
So you’re ready to read the minds of your cash buyers, but what if you simply can’t find cash buyers?
It happens, people. Not often, but it happens. And I want you to be proactive and prepared.
There is only one type of market where wholesaling is not viable, and that’s in markets without cash buyers.
Duh, I already said that. (I’m just seeing if you’re paying attention.)
If you’re looking in uber rural areas, you might find patches without cash buyers. Rule of thumb – if you exhaust all resources to find cash buyers it may be a good indicator that the area you’re fishing in is too rural.
So what?
So find another pond to fish in.
Until next time....peace and love.
The Maestro
Talk to Us
Feel the need to share? Talk to us! Your thoughts and experiences can benefit everyone, so share away. Feel free to leave a comment below, and thanks for your feedback!
Know your cash buyers.
Understand what they plan to do with the property once they purchase.
Avoid contract cancellations at all costs!
Recognize that highly rural areas may not produce cash buyers.
Stay positive and awesome, no matter what.
Andrew Massaro
, also known as "The Maestro", is the founder of Wholesale Coaching, Inc. and is one of the most sought-after wholesale and REO coaches in the U.S. A University of Florida graduate, Andrewís house flipping career started in 2005, during one of the most dramatic and awe-inspiring real estate booms in recent memory.
After many years of success flipping houses in Tampa Bay, Andrew began also pursuing his passion and purpose: hands on, one-on-one coaching and mentoring other investors. Through Wholesale Coaching, students interact with and are coached by Andrew, personally. He has the unique ability to teach and guide his fellow investors to the results they desire. The one-on-one interaction and partnership is the key and what really sets him apart from others who offer coaching.
Andrew is also a loving husband, father to a beautiful little girl, Charlie Lynn, and an active board member of Current of Tampa Bay, a non-profit focusing on humanitarian efforts and showing love to underprivileged individuals.