The Importance of Real Estate Buyer Relationships! #wholesaling #paynelessflipping

Name: The Importance of Real Estate Buyer Relationships! #wholesaling #paynelessflipping
Uploaded: 2024-04-27T23:00:25+00:00
Duration: 19 s
Channel: Nathan Payne
Description: In this segment Nathan Payne and a co‑speaker discuss a noticeable shift in real‑estate wholesaling buyer behavior. Buyers who previously accepted deals…

27 Apr 2024 · 0 min

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In this segment Nathan Payne and a co‑speaker discuss a noticeable shift in real‑estate wholesaling buyer behavior. Buyers who previously accepted deals at around 85% of the after‑repair value (ARV) are now demanding much lower purchase percentages—dropping to 75%, 70% or even 65% when hard‑money lenders are involved—while still expecting great deals. Payne notes that hard‑money lenders are also tightening, offering to buy at 65% of ARV minus repairs and fees, and that lenders to those hard‑money lenders are becoming more cautious. The conversation concludes that because buyers are becoming more conservative and selective, maintaining strong, trusted relationships with buyers is essential for successfully moving deals in this tighter market.

How many buyers have lost out on deals that were ready to go and then someone's like, you know, like pushed them up a little higher where they lost the deal? That's exactly what's going on. They want to, you know, get us and get good deals now. They want great deals. So what's going on right now is they expect great deals. They expect great deals.
They won't even look at deals that they used to before. And I'm talking really good deals.
Yes.
I mean, we have locked up some really, really good deals that we couldn't move over the last couple months that were perfect. I mean, the numbers made sense, but the buyers all of a sudden they wanted 85% —minus repairs. Now they want 75%, 70% minus repairs.
I talked to my hard money lender. He's like, I'll buy anything at 65%, you know, minus repairs, minus your wholesale fee. And I'm like, you know, so they're, they're, they're really going low. And the people lending to the hard money lenders are trying to be more cautious too. So it's, it's going down the line. You really just have to have those relationships with those buyers.