There are a lot of investors out there that get taught by this course or that course that you need to make 5000 for a wholesale deal and 50,000 for assignments of deals with larger profits. This is not necessarily the profits that you will see in a lot of the deals that are out there, having an extra 5000 cut out of the deal could make or break the deal for the investor you are trying to sell it to. If the investor only has 3000 up front to pay you – then I say you should take it! The common mistake that I see investors making out there is trying to ask for fees that are too high to make the deals appealing to investors that have smaller profit ranges. There is a river of money to be made closing LOTS of deals were you can make 30-10,000 per deal rather than waiting to wholesale the 2 or 3 deals out of 10000 that will get you 20K in assignment fees. This same phenomenon holds true when looking at renovation projects in Calgary and area, the real estate market in Calgary is still very expensive and unless you want to spend 80-180K on your renovation project (which you could do in just about any area in Calgary) then you will have to consider smaller/faster projects where the profits might be a bit skinny but they will start and close a lot faster. The way to get ahead in your real estate business in the beginning is to set your sights on the low hanging fruit – which are the quick and easy projects we like to call “lipstick and rouge” renovations that only require the basics such as paint, flooring, appliances, and some clean up in the bathrooms and kitchens. This type of renovation deal can be done in Calgary and area for cheap and then you can get the property back on the market for a quick sale. There are also a much larger and less picky buyers pool for these properties because of the lower price point, the other options will all be very dated in need of some serious TLC so if your newly cleaned up property is next door then you will get a great price in less time in these areas than you would in the higher end areas of town where the buyers have the budget and time to take as long as they want. Think about the math here…it is always far better to make say 20k on the property that you actually DO as opposed to 100% of the 80K flip that never happens! If you are able to make even 10k per property with a joint venture partner and you do 5 of those each year then you put an additional 50,000 on your bottom line. Keep your eyes on the bigger prize of profits and consider doing a bunch of smaller deals rather than waiting for the big fish that could be an expert and avoiding your real estate fishing line!
To your success!