Thanks
@getting there pnw Congrats on completing your flip. I imagine for a flip, you would want a brand new kitchen. As my properties are rentals, I will try and salvage the cabinets and paint over, install granite and new hardware vs brand new kitchen.
What are the numbers on your flip? Best of luck on the sale side. I'm from WA originally, lot of family on the West side and also on the East side, Spokane area. Texas can't compare.
@Padonak Thanks. A wholesaler is an individual (or a company) that will market for sellers directly, based upon various lists they can pay for or pull manually from city/county records. Lists such as probate, foreclosures, etc.
They'll contact these people directly and attempt to negotiate a quick cash deal. Once they have that deal under contract, they'll add their mark-up and go market that deal to their investors - guys like me. When I close on the property, they make their money and hopefully everyone walks away happy.
Normal profit margin varies. I've seen some make only $3K but more recently I see them make quite a bit more. I think on property #7, the wholesaler made $10k. Pretty impressive for what was probably less than a few hours of work and very little risk on his end.
Going back to the wholesaler of property #7 - he's a good friend of mine so we share details of our business to each other. He buys only in certain areas, not this area, hence he didn't want the deal himself. In addition, he's going after 20+ unit multi-fam and not single family homes, even if they have a $40k+ spread on them.
I should note, there are marketing expenses for the wholesaler, of course. I don't know exactly what his expenses are but I imagine he's spending at least $8k a year on letter mailing/direct marketing. But obviously, 1 deal more than makes up for that and anything more is his profit.
In addition, when he comes across deals in his farming area, he'll cherry pick and perform a full flip on it.