Despite what the media says on tv or on talknews radio, there are still tons of deals to be had to make some really good money. And I’m not talking about $1,000 and $2,000 deals. I’m talking about $5,000 to $20,000 deals done in todays market.
I had the opportunity of going to assist my mentor, Jamel Gibbs and stand in as a coach at his Real Estate Summit over in Greensboro, NC. Jamel Gibbs had a guest speaker there who travels for a living he asked the question…”how many of you are doing deals wholesaling?”
A few people raised their hands. He then asked for how much and most people blurted out the numbers between $1,000 to $3,000…if they had even closed a deal yet.
The gentelman’s response then was…”If you are not making $5,000 and up, we need to talk about your business because you’re doing something wrong.”
I sat back in my chair and thought about that, because there has been times where I only made a $1,500 assignment fee on a deal. Don’t get me wrong, if you’re making $1,000 or $1,500 on a property, that is good money. Money is money. Especially if it’s your first deal. But the problem is that the same work that you do on a house with a small assingment fee, you do the same exact amount of work on a house with a bigger assignment fee.
The key to doing this is your target market. If you only focus the low income houses for deals, your spread will not be as big as opposed to going towards the middel income market. IF you happen to lock up a deal on a house that is worth 1 million dollars, you’re still going to do the same amount of work that you’re going to do on a home in the hood. But the spread will be much greater on the million dollar home.
Jamel has also taught me that your money is made in the nefotiation, not when you sign the paperwork at the title company when you get your check.
I hope I opened your eyes to a few things! Happy home hunting!
