AstroFlipping founder Jamil Damji sees a lot of aspiring wholesalers talking themselves out of doing deals. “It’s too competitive. It’s a seller’s market. Maybe it’s better if I just sit on the sidelines.” Right? And Jamil doesn’t disagree if you’re talking about retail real estate. Meaning, homes that are turnkey. Move-in ready. Yeah, those types of properties have appreciated big time, they’re getting multiple offers, cash buyers; all of that’s true here in 2023.
“But what hasn’t changed,” Jamil points out, “and what I don’t think will ever change is what creates the subset of homes that we, as wholesalers, trade in. And that is distressed property or distressed situations. For example, when you’re looking at one of the houses that I would wholesale or fix and flip, these are houses that are in absolute terrible condition. It would never pass an inspection or appraisal, which is what a retail buyer would have to have happen in order to get approved for a loan, right?”
“And so there is no immediate liquidity or ready-cash buyers,” Jamil continues, “that are ready to take a property like that on because the condition of it is so poor, it can’t be financed by a traditional lending source. So what we as wholesalers offer to real estate agents and home owners that are facing that type of situation, is an opportunity for a seamless or a convenient sale. Secondly, I don’t care how hot a market is; we live in the United States of America, and what we value as a culture? Is convenience.”
“Everything is about convenience in our culture. Right? From the way we eat to the way we dress, travel, the way we communicate, everything is convenience-based. And people are willing to pay for convenience. For instance, taxi cab? Pain in the butt. Uber? Easy. Think about how many people Uber now that never took a taxi before. When you think about it, it’s a matter of convenience. So the public is willing to pay, and sell to you at a discount, because you bring them a convenient way out of the property they no longer want.”
Think about the types of properties these are. Some were inherited. Others had fire damage. Or major structural issues. Or they were owned by a legit hoarder, so they’re full of junk. Just nightmare listings if you go the normal retail route. All of ’em would need significant work and capital to make ’em livable again. This is how Jamil continues to clean house, literally, even in a saturated real estate market. And there are plenty of these types of deals out there, with an estimated 12 million homes sitting vacant right now.
And that only accounts for just one type of distressed property. Doesn’t include code violations, foreclosures, probate, etc. Add it all up and you’re probably talking about 20 million houses out there, waiting for someone like you to come and scoop ’em up. Once you understand that, you run outta excuses real quick. Now it’s just a limiting belief that’s holding you back; not the competition or the timing or the state of the real estate market. Your lizard brain’s trying to keep you safe from a scary entrepreneurial journey, is all it is.
Remember, too, that in a market like this, once you get a contract, it’s much easier to flip for a higher dollar amount than you’d get in a normal or a down market. For instance, Jamil’s KeyGlee franchise opportunity, which finds investment properties for you, has seen average wholesale profits go from about $8k per deal, all the way up to $20k as of late. So you could do half as many deals, and still come out ahead, right? Moral of the story? Less whining, more AstroFlipping.