What wholesalers need to worry about when closing a deal #wholesalerealestate #wholesalinghouses

Name: What wholesalers need to worry about when closing a deal #wholesalerealestate #wholesalinghouses
Uploaded: 2024-10-22T00:30:11+00:00
Duration: 51 s
Channel: Jay Mendez
Description: In this concise instructional monologue, Jesus Gabriel Mendez advises real‑estate wholesalers to focus on the close of escrow—not the nominal closing…

22 Oct 2024 · 1 min

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In this concise instructional monologue, Jesus Gabriel Mendez advises real‑estate wholesalers to focus on the close of escrow—not the nominal closing date—as the moment when all contractual obligations are satisfied, the seller is paid, the wholesaler receives their fee, and the buyer takes ownership. He stresses the importance of allowing at least a 30‑day inspection period, arguing that this window lets the wholesaler gauge market demand, test multiple offers, and potentially secure a price well above the original contract amount, thereby maximizing profit. Shorter inspection windows, he warns, limit flexibility and may force acceptance of lower offers.

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So as wholesalers, you only worry about the close on escrow and not the closing date? Let me tell you. Yes, because that's when all the requirements of both agreements have been completed. Fulfillment on both agreements have happened. The seller got paid, we get paid out, and the buyer gets to keep the property. Now, as far as an inspection period, I always recommend at least 30 days because that gives you enough time to go ahead and see what the market wants to give you for the property. What I mean by that is knowing if you got the property at a good price. The market will tell you and offer you obviously a price where it's above your profit margin. Let's say you got a property under contract for $50,000, you keep getting offers $60,000, $70,000, $80,000, you know you got it at a good price and you know you have time to maybe, hopefully get a $90,000 offer. But if you have a smaller inspection period, then you're going to be stuck with having to take for whatever you get. But if you have that time period, you're able to pick and choose who you work with and hopefully maximize your profit.