OfflineI notice there are a lot of greedy people out there. They want to squeeze every last dime out of a deal when they wholesale it to a cash buyer. That is a huge mistake.
In my area there are a couple wholesalers who keep raising their prices because they know I am a serious buyer. I kept warning them that their greed was getting the best of them. But they didn't listen to me. They just expected me to keep paying their higher prices.
Well, many of you may know that I don't just sit around and let stuff like that happen to me.
So what did I do to lower my prices from them? I unleashed good ol' american capitalism on them! Many of you may not understand capitalism so I will give you a quick definition.
The whole idea behind capitalism is that prices should never go up. If someone comes up with a great product that everybody wants then eventually someone else starts producing the exact same product and charges less for it creating competition. That competition eventually brings prices down. Thats good ol' american capitalism at its finest.
SO when I got tired of my prices from these wholesalers going up I decided to introduce competition! I went out there and worked with several new wholesalers and taught them how to find houses dirt cheap to sell to me. (can you imagine getting free training from me and then me buying houses from you after I showed you how to do it)
Now instead of me buying houses from 1 or 2 wholesalers in my area, I am buying from 5. My prices immediately went down and my volume went up.
Hmmmm.....why do I need the greedy wholesalers now?? I don't! And for the record I sent out several warnings to them but, they did not listen and now they are scratching and fighting for every last deal. Life is much harder for them.
Let this be a lesson to you. When you find a great cash buyer in your area treat them right.
Don't get greedy! Or else!
Matt Larson
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
It was a question to everyone.
"I have my mountain in sight. I am climbing to the top and I will kick anyone off that stands in my way or tries to hold me back!" --quot by me.
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Slow and steady wins the race. Thank you for your incredibly helpful input!
I am willing to work the way most people WON'T, so that in a few short years, my family and I can live the way most people CAN'T!
It's inspiring to read your posts! And I like that you still find the time to share with the rest of us!
Barb
Enjoy your day!
Barb
"I feel alive when I'm being creative." "I want to use my talents in a way that will be fun, fulfilling, and really profitable."
I agree whole heartedly that you should treat people how you want to be treated. You will get out of life what you put into it.
Jimmy
This is a good discussion. I found out a long time ago that little pigs are cute but big hogs get slaughtered. Greed applies to many business endeavors from home buying, selling, contractors, and education instruction. This is one reason for wanting to help others, it will also help you.
Jimmy
Matt,
Thanks!!
I love this rule of thumb. I think I've been doing my deals too low-- not enough meat for me, but it gives me volume in buyers-- I just don;t want to skew the market for wholesalers, so I love your rule of thumb:
cbrpower wrote:
A good way to measure you assignment fee is this:
Your buyer should be able to make 3-4 times more profit than your fee.
example--if you assign a property for a $5000 fee, the buyer should be able to make $20,000 profit after all expenses.
-Tina
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176