Real Estate Podcast

Episode 34: What is WholeTailing?

brrrr method david dodge discount property investor michael slane podcast real estate 101 real estate coaching real estate investing real estate investor real estate tips wholesaling wholesaling real estate Sep 21, 2022

Show Notes

The market is heating up, the market is Hot!  I'm sure you've been hearing this, almost doesn't matter what market you are in, people are buying right now.  In this episode, the boys discuss a strategy they are using to increase profit margins.  What is a Wholesaling?  How do you spell Whole-Tail? To be honest I'm not sure it's a real word at this point but it is a real investing strategy.  Listen in as Mike and Dave discuss some of the deals they are currently doing as well as why they are wholesaling.

Episode Transcripts

David: That's great. Hey guys welcome back Discount Property Investors! This is your host David Dodge, co-host Mike Slane.

Mike:  Hey guys! Welcome back.

David: Mike, how are you doing today buddy?

Mike:  I am doing great Dave, I am doing great. How about yourself?

David: I am doing fantastic, man. We have a couple of wholetailing deals that we are going to be closing here in the next week or two. Man do I love wholetailing.

Mike:  You know what? I have mixed feelings right now; I am excited about it.

David: Right?

Mike:  But we -- so let's talk about -- well first, welcome back to the show. If you haven’t listened to our show; please go back and check out the first 10 episodes. Check out https://www.freewholesalecourse.com. There you are going to learn everything there is to know about wholesaling. It is basically an outline of what we do. So -- that said, David and I are primarily wholesalers that is our primary business. But what we started getting into wholetailing. We are not going to spell it, because quite frankly every time we spell it --

David: There is about 10 different ways to spell it.

Mike:  So where does the word come from first off? Wholesaling is when you buy it off-market; sell it off-market for the most part. Wholetailing is when you buy a property off-market, and then sell it to a retail seller, so you can list it on the MLS, or sell it retail. Whole-tailing.

David: That's a great definition. So essentially you are taking whole-sale and re-tail and you are putting those two words together. Wholetailing.

Mike:  Exactly.

David: Wholesale and retail.

Mike:  Simple definition hopefully of what wholetail is, as we refer to it.

David: Sure.

Mike:  I am not sure if there is a definition, maybe we will be in Webster's dictionary one day. Wholetail. That is a phrase that needs to get up there.

David: Right.

Mike:  Eventually -- anyways. So, what is wholetailing? And why do I have mixed emotions about it? Well -- we are primarily a wholesale company, and we are used to the quick cash.

David: We are.

Mike:  So what you do with a wholesale, you line up the seller and you put your AB contract in place, then you line up your buyer, you put that BC contract in place. You close it and you get a check. You walk away from the closing table with a check. The wholetailing -- we actually close on most of the properties. And -- one of the other investors says it best, one of the other St Louis guys says, "You knock the ugly off of it."

David: That is a great definition, or a way to describe it.

Mike:  It's a mindset. So we bought this property, and you are just going to knock the ugly off of it. Meaning -- if somebody moved out and they left a whole bunch of stuff, they don't vacuum, they don’t clean the carpets. There is a bunch of smudges on the wall -- it's just a lived in house. You go in, you get a dumpster, you tear out everything that is gross or if there is a whole bunch of trash or property left behind, you remove all that. Then maybe you do carpet and paint.

David: Carpet, paint, landscaping. That's about it. So -- one thing I definitely want to let the listeners and views know about our business and wholetailing -- everybody can do it a little different obviously but -- we are not doing full blown rehabs, which would be really considered rehabbing. Whenever you do a Wholetail deal, you are -- like Mike said, knocking the ugly off of it. You clean it out, rip out all the old stuff, all the dirty stuff, and usually when you are buying these wholesale deals, a lot of stuff is left behind. Possessions or junk, or trash.

Mike:  I said rip out, we are not like ripping out the bathroom and the kitchen

David: Right.

Mike:  I think that was the wrong word to use there.

David: More of just cleaning. Clean it out. Sometimes you need a dumpster, often times you don’t. Often times you can just hire a clean out crew who might have a truck and a trailer. They will just come in and remove all that stuff for you. Then like Mike said, we are knocking the ugly off of it. So at the very most what we are doing with these deals is we are going to be painting them, we are going to be replacing some carpet, or minor flooring. Then maybe some landscaping or typically not -- going to be going into these deals with new bathrooms, new kitchens, new counter tops, new cabinets. If anything, we will paint the cabinets. But the idea is to not have to hire a general contractor -- and not spend a ton of money on the knock ugly off or clean out, or clean up, whatever you want to call it.

Mike:  Well -- it is money and time though too, right?

David: Absolutely, and that is a great point, Mike. Because -- whenever you do a rehab, you are looking at 45 -- 60 days, whenever you include your permitting and your inspections. With these types of deals, how much time are we spending?

Mike:  Again, it depends on the deal, but a couple of weeks. We don’t necessarily want to be working on the project for more --

David: I say one to two is really the target. Sometimes it may take a little more.

Mike:  Well I was going to say, our first one -- we were looking at a month. Our second one we did in 4 days. So it is one of those where -- the average is probably going to work out to 2 weeks. So that is I think our goal.

David: Right.

Mike:  Dave, do you want to talk a little about -- I can't even say it. Let's talk about the [00:05:16.06 - inaudible] deal we are doing in about 4 days.

David: Yeah absolutely. So we bought this deal wholesale. We actually bough this deal from another wholesaler. It was a good deal, even after paying the other wholesalers -- wholesale fee. Essentially the home didn't need that much. You walk in, it stunk a little bit, there was a bunch of trash left behind -- all of the carpets were -- kind of gross and dirty. There was hardwood flooring throughout. Really the main thing is the bedrooms all had different colors on the walls. You had a pink bedroom, a purple bedroom and a green bedroom, then a tan bedroom. Just kind of dirty walls going up and down the stairs. The house isn’t really a big house. So what we did with this house, we bought it from another wholesaler -- which is kind of strange because we are wholesalers but we saw it, we thought hey we can make some money wholetailing this deal.

Mike:  It's not that strange because we have always said that all the other investors in our market are strategic partners.

David: That's right.

Mike:  And that's exactly how we look at them, and hey you got a deal, great you want to wholesale real quickly for some cash cool, we will close on it. And -- we will make a little money on the back.

David: We will pay you your wholesale fee and we are going to hold it for a little bit and put some more money into it and we are going to make some money on it to. Essentially what we did with this house is we hired a clean out crew who came out -- they ripped out the carpet, moved all the possessions that were left behind -- and then what we did was hire a painting company to come in and pain the entire house. We hired a cleaning company to come in and scrub the kitchen, the cabinets, the floors, the bathroom and so on and so forth. And then we hired a landscaping company to come out and trim the bushes and put some molt down. So essentially we made 3 phones calls to 3 different companies. We got a lock box on the front door so the management of the -- make ready, I don’t want to call it a rehab because -- it wasn’t really that labor intensive, and it really wasn’t that expensive either. The make ready of it essentially took us about a week and a half to 2 weeks. Made 3 phone calls, and I don’t even -- did we even put carpet in that one?

Mike:  No, so the upstairs had the hardwood or the laminate flooring in some areas. The downstairs had carpet that we ripped out and I believe we painted.

David: Paint and the floor, that's right. There was a fourth company we hired, it was a light staging. I think we paid 5 or 600 books to have it staged. Again it was very light. Just a couple of pictures on the walls and a little table with some chairs in the kitchen and couch and that’s about it. We have that property -- is it on the market or is it going on the market today or tomorrow?

Mike:  It should be on the market today.

David: It should be on the market today.

Mike:  Yeah.

David: So again what we have done is essentially bought and wholesale and we are just doing a quick make ready. The advantage of doing the quick make ready in my opinion is that -- there is two of them really; cost and time. We didn’t need to hire anybody to do anything major. We didn’t need to get any permits from city or the county. We didn’t have to have any inspectors coming in and bothering us, because we were not doing anything with the electrical or the plumbing or structural. Essentially we just cleaned it up, painted it, added some new things and gave it a little bit of appeal.

Mike:  So why does that make sense though to? Why would we want to do that? Why would we want to spend a hundred and something thousand dollars into a property and wait a month? Because again -- it took us a week and half to get it done --

David: That is a great question.

Mike:  -- somebody is going to have to come with a loan and purchase the property. It is going to take another 30 to 45 days to close. So why would we want to do that, Dave?

David: That is a great question, Mike. And really it comes down to the pros and cons of doing wholesale versus wholetail. So as you mentioned earlier with wholesale -- the pro is you get paid quick. Usually you are in and out of the deal in 2 or 3 weeks.

Mike:  And if you don't have the cash to close.

David: And if you don’t have the cash to close, absolutely.

Mike:  There is multiple advantages.

David: Great point. So with the wholetail -- typically you can make a lot more than you can off of a wholesale. So a wholesale fee could be anywhere from -- 2 or 3 grand on a low end, 15-20 on the high end. With a wholetail -- your low end is typically at least 10. Your high end is really as high as you can sell it for. There is really no maximum. So the idea for us with wholetailing is we can do less deals and still make amount of money, or make the same amount of deals and make more money.

Mike:  It's increase profit margin. That is the main thing, so instead of making -- well on this deal we might not have even bought it if we had not planned on wholetailing. Because you mentioned we bought this particular deal from another wholesaler. So it is a deal we might not have even done, but again, since we are getting funding behind us and our funds in place -- it makes sense to do these additional deals that we can make a little bit more money on just by investing some money of our own. So obviously I think there is definitely a change in risk tolerance and -- again I think that is part of the thing I mentioned -- I am getting used to -- warming up to the wholetailing. But it is, it is a bit of a shift in mindset from wholesaling, which I have been doing for years now. I am just used to quick, quick, quick, flip. This takes a little bit more time, but our profit margins are expected to be -- much larger, and that is ---

David: Let's talk about the time frame though. So whenever we do the wholetail, obviously we have to purchase the property. So one of the things that you need is funding in place. So we have to actually close on the property, and then you are looking at typically one to two weeks, maybe could be as long as three -- do to that make ready, to do that clean out and that paint and that cleaning, and so on and so forth. Then what you want to do is you want to get an agent if you are not already one. Get one that you can work with that can list that property on the market. Ideally you still want to price that property 5-10% below the comps in the area of what that property really is worth, because you don’t want it to sit on the market for four months. You want it to sell, hopefully within the first week or two. By dropping the price down 5-10% of what it is really worth, you are going to get a lot more interest in that property from your buyers. But essentially once you get your offer and you accept that offer, 9 times out 10 they are going to need financing, they are going to need a bank to give them a loan. That process doesn’t typically happen quickly. It doesn’t take forever by any means; but you are looking at minimum, of what do you think, Mike? 30 days?

Mike:  A minimum of 30 days.

David: A minimum.

Mike:  At least, that is a pretty quick close. I think with the market the way it is; that's another reason we didn't even touch on. The market is pretty hot here in St Louis. I suspect that it is in most areas across the country. Everyone seems to be talking about how the real estate market is really heating up. So that is another reason that we are entering this strategy. So the market is hotter so you are expecting more offers that are qualified buyers. So we are expecting to get -- like Dave said, price it a little bit lower, so we expecting to get a little more attention from qualified buyers, and hopefully get an offer in the first couple of days -- that makes sense.

David: Right and often times if you price it low, like let’s say we wanted to just move it quick and we put it at 10 maybe even 12% below the real value, often times we will get multiple bids and multiple offers -- and people will start competing against that property, and you can actually get more money than you were even asking for it because you may have two or three parties there that are say, hey I really want this property -- and they say I will give 5000 over asking and so on so forth. There are advantages often from putting that property at a 5, 10 ish percent under market asking price.

Mike:  Absolutely. So we have got several of these going on right now. Do you want to jump ship and we will talked about the [00:13:23.24 - inaudible] deal or do you want to talk about --

David: Well the [00:13:28.15 - inaudible] deal was actually a -- we planned to wholetail but we essentially rehabbed that house.

Mike:  No, I am sorry let’s talk about [00:13:38.02 - inaudible] the second.

David: [00:13:39.18 - inaudible] is a good example. It is also in [00:13:42.14 - inaudible] you're right. Absolutely, I am thinking of a different address here. So that one was actually a very unique situation. We did a wholetail with that and we didn’t do a single thing to make it ready. So when we bought it we bought it wholesale, we bought it direct from the seller. That was -- he was a landlord, he had owned the property for 30 years, lived in it for 15 and rented it for 15 approximately. And -- when we walked through it; it needed a couple of things. But it was all very minor stuff and we say hey, instead of us wholesaling this, let's just list it on the market via and agent and get it up on the MLS -- lets not doing anything, we didn’t clean it out, we didn’t clean it, we literally just listed it.

Mike:  This is one of my favorite things -- one of my favorite terms; I call it a time capsule home.

David: Right.

Mike:  Because it looks like a house that was built in 1960, so it has pink bathrooms and green tile and stuff like that. Where you walk in and it just feels like, oh -- this is a nice house 40 years ago.

David: Right.

Mike:  And that was exactly what it was.

David: And you can move into it today, it is just dated.

Mike:  It's all livable, everything is functional, there is nothing wrong with the house per say, it is just not something that is up to today’s modern tastes or whatever. So great property, a really good property.

David: It's a good one.

Mike:  So we went in with an aggressive offer. We knew there was competition on the deal. Dave, i think you were out there that day as well.

David: Yeah there was wholesalers leaving the property as I arrived, and there were wholesalers arriving as I was leaving. So I knew immediately there is a lot of competition and we need to come in on this with a really aggressive offer, and we did. We came in with an offer and really the offer that we gave -- would have left very little room for us to wholesale it. We probably could have made a couple of thousand on the wholesale, but we came in aggressively because we had the intentions of wholetailing it. We knew we were going to buy it and list it. Either make very little repairs like cleaning out and what not. Or just nothing, and in this scenario we didn’t do a single thing. We got the lockbox in place, put it on the market and -- did we sell that one?

Mike:  Yeah we sold it.

David: So we got an offer on that one and it is sold.

Mike:  We can talk -- do you want to talk numbers? We can talk numbers on it.

David: Sure.

Mike:  That one we bought for 156 I believe and we got the sale price at 180? Now there is several things you have to factor in when you are doing a wholetail though. That is not all profit on the wholetail deal. There is -- first the money costs so unless you have the pile of cash sitting in the bank account; you are going to have to factor in getting a loan or a bank loan on it. So you are going to have to pay for that. You are also going to have to factor in it you list it; then even if you are a real estate agent you are not going to have to pay the full 6%, but you are going to have to pay the buyer's agent typically.

David: Which is anywhere from 2.5 to 3%. Typically we do 2.7.

Mike:  That is what we offer, yeah it is 2.7. So there is another 2.7% that we have to pay out on that in addition to closing costs which are pretty normal for a wholesale deal as well. But it is just some additional costs, the agent’s fee and the holding cost, of the financing cost. So something to be aware of that there are additional costs when you are doing the wholetail as well, even if we don’t do any work to the property.

David: Mike, let’s talk about this real quick when it comes to wholetailing. So -- we have, at least we think -- probably the largest buyers list in the St Louis area. You know it is a massive list by all means. But there are some advantages to putting the property straight on the MLS, listing it with an agent and getting it out there. Because -- there is 2 million people in St Louis and our list is several thousand people, but -- we don’t have every single investor and every single landlord -- on our list.

Mike:  Well that's the thing; you are never going to get everyone on your list.

David: Never going to get everyone on your list.

Mike:  The MLS -- what is it?

David: Massive list of sellers?

Mike:  Massive list of sellers. But -- yeah that's what I was going for -- but it is the exact opposite.

David: Right?

Mike:  You have also got more eyeballs out there. That's where everyone is looking to buy properties to. And especially your non seasoned, non full time investors --

David: That is a great point because not every rehabber or landlord -- knows a wholesaler. And or knows that you can go out and get a property at 20/30/40% discount. So you still have thousands of individuals that are looking to invest and rehabs and landlord. But they don’t know any better so the MLS is where they go. They hire an agent, or they just go on Zillo.

Mike:  This is -- again, it is not -- we are not really taking advantage. I think we are creating a win:win.

David: We had multiple offers on that deal to.

Mike:  Yeah we did, oh my gosh. We probably had 30 people go and look at it in the first 3 days.

David: First 2 or 3 days.

Mike:  It's just unbelievable. So again, you get a lot of eyeballs on it that you wouldn’t necessarily get from your off market list. You have got potential owner occupants going to look at it. So you have got somebody who is -- and this is in a nice area, so you have got families looking, and they are just looking for a discount on a house -- that is not otherwise out there. In this area --

David: Good area, low crime, good schools.

Mike:  You are not going to find something for under 200.

David: Right.

Mike:  It's just rare. Right under 200 maybe.

David: The crazy thing about this deal is that I actually offered the guy, the seller when I went out more money than he was really wanting; because I knew that I needed to have an aggressive offer. He was offering for around 150 and his wife, when I gave them the written offer, she goes, oh wow this is more than we were hoping to get.

Mike:  Yeah, it's great.

David: I knew that there was still margin in there for us to make money, and I wanted to make sure that we won the deal. Like I said, there were multiple people out there -- and --

Mike:  So let's talk about how we want to create win:wins to.

David: Sure.

Mike:  So you say geez, why didn’t the seller just list it?Well here is the thing; the seller needed to sell quickly.

David: He did.

Mike:  So --

David: He was just done with it --

Mike:  Right.

David: It was vacant, they had a mortgage payment.

Mike:  Right, so they needed to liquidate and one of the things that our buddy Jimmy says that wholesalers do, is we provide liquidity to the market.

David: We do such a great point.

Mike:  So we talked to the seller and say, listen -- we can give you 156 -- it's a little bit more than you are expecting, we know if you fix it up and you go retail you will get more for it. But here is what we can do; we can close -- what day do you want to close?

David: Right.

Mike:  That's one of our big advantages.

David: We have our financing in line; our funding is ready to go. Like Mike said, what day do you want to close? Well we want to buy it, here is what we are going to offer for it. The ball is in your court. It was actually kind of a unique situation to because he had invited -- I don’t even know how many people out, estimate 10 or 12 at a minimum to come out and look at this property. It was on a Thursday and it was like -- I want to say it was 10 - 12. A two hour gap where he wanted to get everybody in -- then he said I am going to make a decision on Sunday. This is the showing time, this was on Thursday so -- there were multiple days in between. We had given him a written contract right there and there when we went out. We called him back that evening and say, hey we realize you want to get all the offers and all the information. However we are offering more than you are really asking for this property. So, what is stopping us from just getting this deal signed right now? He said, now that I think about it, nothing this offer is great, there was no inspections, no contingencies because we were out there for 30 minutes.

Mike:  An aggressive offer.

David: It was an aggressive offer and he said, you know what? Show me proof of funds and we will get it signed. We send him proof of funds; he signed the deal right then and there. Of course all of our competitors, our strategic partners -- we had talked to a couple of them and they are like -- man we didn’t even get our offer in yet, you guys have already won the deal. It is like -- we were prepared.

Mike:  That happens to us to though. We win some we lose some.

David: It does. We were prepared, we came with a contract in hand and we did our inspections right then and there. We had comps pulled before we even got the property. We were just ready to rock, ready to roll right then and there. We won the deal and -- most of the other individuals hadn’t even sent the offer to them yet and we had already locked it up. So definitely want to -- point out the importance of just being prepared whenever you are in a competitive situation.

Mike:  You know what Dave? That is a good point. You know we were -- on one of our previous episodes we aired the interview with Simple wholesaling. They had asked what has made us different and we talked a little bit about the credibility packet. I think we ought to do an episode on that maybe next week or a couple of weeks from now. We will do a whole episode just on the credibility packet, building that, what to include, why you want to use it and stuff like that.

David: Absolutely, credibility packet is very important guys. I think the reason we won the deal that we are talking about right now was because of the fact we had a credibility packet. In that packet is a contract and -- yeah, absolutely Mike, great thinking let’s do an episode on that, that would be awesome.

Mike:  So let’s talk about -- we got one more wholetail going on right now? We got two more.

David: We got another one up in North County, that one we bought via and auction. That one was -- that was a unique deal, it was occupied.

Mike:  I don’t know all the details, Dave. I would love to hear.

David: I will try and make it quick. This was a unique deal, we bought it via a local auction; it was a foreclosure. When we bought the property it was occupied. Whenever you are buying and occupied property, that involves a lot more risk, because you have to get that tenant out of that -- resident that was no longer making those mortgage payments out. So we purchased the home at the auction and then we went up to the home and knocked on the door.

Mike:  Real quick -- sorry to interject.

David: Please.

Mike:  One of the reasons you are able to get the deal though is because of that. That is an issue, that is a problem so you are buying this problem; but that allows you to make money on the deals. So not everyone at the auction is going to want to deal with that. Or, they all know this is going to be an issue, so we -- the price has got to be lower. So it is a good thing.

David: There is competition there, Mike, whenever we went to the auction. There were several people who were bidding on it. But -- the bidding it just started to cool down a bit once the price got a little bit higher, because there was that added risk like you said. Essentially though, we purchased it, we went and knocked on the door. We were not able to reach the owner/resident at that initial time we went. Former owner, so we skip traced the address and found out the owner, we found the number. We called her and she was actually a really sweet lady. We just said, hey we just purchased your home at the auction. We are sorry to inform you but we need you to move along. We had asked her what plans were and she said, I am aware the home was sold and I haven’t made a mortgage payment. She was well aware of the fact the home was going to be sold and -- I think she was happy that we were nice whenever we came -- we weren’t like, hey get out! We were like, hey do you have plans to move. What we did was, we even offered what is called cash for keys. We said, listen we are not trying to be the bad guy here. We are investors, this is just how we pay our bills and make a living. We buy houses and often times people live in them. So if you need help moving your stuff out or need a deposit on your department or whatever the case is. We would be happy to give you some cash once you are out and deliver the keys to us. She is like, oh that would be great. So essentially what happened is -- she moved all of her stuff into an apartment, took about 2 and half to 3 weeks to locate the apartment, get the lease signed and then actually move it. It was fine; we told her we would give her 30 days. We said, hey if you can deliver us the keys and garage door remotes -- and everything once you are out -- and obviously nothing has been vandalized; then we will give you 500 bucks. Often times we will offer 1000 or 1500, but in this scenario when we told her 500 she jumped on it, and said that would be amazing, I would be grateful to get that money.

Mike:  Who wouldn’t? We do the same thing with some of our tenants to when they are falling behind. So cash for keys is a great technique to use.

David: It is, so essentially it was great. Then even called a dumpster out to the home and cleaned out the house -- there was virtually nothing left behind, it was -- they did all the hard work for us.

Mike:  That's great.

David: They didn’t pull the carpet, they didn’t paint. But they removed all the trash, and the home was actually in pretty clean condition. I want to say they probably cleaned it.

Mike:  That's great, I was going to say that is a couple of hundred bucks worth of work right there.

David: Absolutely. And I didn’t even ask her to do that, nor did I expect it, but she was just a sweet lady, ended up working out really nice. So to sum it up, we met her at the property after she moved out and she had a zip lock bag full of keys and she had a couple of garage remotes for us -- we exchanged the keys for $500 in cash. That was it. She was such a sweet lady that we didn’t even change the locks. She said she moved up the street and she wanted to know what we were gonna do with the property. We told her we are either going to be rehabbing it or finding a rehabber that would buy it. She said, would it be okay if I came back in a couple of weeks to see the progress, I am just curious what you guys do. I said, absolutely, no problem at all; just shoot me a call or a text so I can notify either our rehab company or our buyers -- so you don’t spook them. She said, yeah of course. I just threw a lockbox on the front door and we listed it on the market a day or two later. That one hasn’t actually sold yet, but we are getting offers on it. We purchased the home for $82,000; we listed it for $109,000. We have had 10-15 showings on it and I suspect we will get a contract on that in the next couple of days. Great wholetail.

Mike:  That was the one -- we expect ARV of like what, 130? Something like that?

David: Yeah, 130-140. The home needs 20-30 grand worth of work. But it is move in ready. Again, kind of like the other deal we talked about to where -- it would be a great deal for a landlord who wanted to buy it and put a couple of thousand into it. Would be a great deal for an owner occupant who has got some handyman experience that could fix up the property. Or it would be a great deal for a rehabber that wants to go in and put 20-30 grand into that property, and then sell if for a $10-15,000 profit. So it opens up a lot of options when it comes to exiting the deal, because we are not just looking for a rehabber or not just looking for a landlord. We have multiple exit strategies on the deal.

Mike:  It's potential buyers; there is just a lot more potential buyers.

David: The pool is bigger.

Mike:  So great, I think that is kind of what we have going on with the wholetailing strategy. Again, hopefully we covered the -- idea, the concept pretty well for you. You are basically buying it off market, non-MLS listed. You are doing your marketing and you take down the property, you close on it. Then hopefully you re-list it and hopefully sell it for a little bit more than if you had just tried to wholesale it.

David: That is the name of the game -- you are trying to get a higher -- excuse me, a higher percentage of profits when you do the wholetail. The downside is you are going to spend more money and more time -- but you can make more money on their deals, absolutely. So one thing I do want to add really quickly though is; if you can buy it directly from the seller -- wholesale, that is great. But you can also buy it from a wholesaler. You are still buying it wholesale if you buy it from a wholesaler. You are going to pay them a fee for locating that property, but you are still getting it off market and you are getting a discount on it. So you can wholetail properties that you are buying from wholesalers, or you can wholetail properties that you are buying direct.

Mike:  That may be a great strategy for someone starting out right now if they have some money.

David: And don’t have a ton of rehab experience.

Mike:  Right, well -- especially if you don’t want to get into the marketing game real heavy. Just go and meet a whole bunch of wholesalers and -- find -- deals from wholesalers. Clean them up a little bit and list them. That is a great strategy.

David: It is. And you know we sell to rehabbers that often do the make ready. The make ready rehabber verses the full blown gut rehab. They do great as well too.

Mike:  So wholetailing guys, great strategy, go ahead and consider implementing that if it makes sense for you and your business. I want to thank everybody for listening and -- encourage you guys to check out the free wholesale course if you haven’t. Everything that we know about wholesaling. We will go ahead and close up with a quote. Dave, do you want to do the quote today

David: Sure! Let’s do it. So the quote today is, "Real estate cannot be lost or stolen, nor can it be carried away. Purchase with common sense, paid for in full, and managed with reasonable care is about the safest investment in the world". Is that a quote by Franklin Roosevelt?

Mike:  I believe so.

David: Awesome, very cool. Hey guys thanks for listening.



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