Wholesale properties are properties that are sold to investors and are often rehabbed to add value. Wholesale properties are sold to investors by real estate wholesalers that do not sell to retail buyers.. Prospect Equity Partners is specifically in a wholesale market and does not provide properties to retail buyers. After acquiring an investment property from the wholesaler, the investor then rehabs the property and aims to resell it in the retail market or to simply rent it out.

How much of a discount can be expected when purchasing a wholesale property?

Prospect Equity Partners understands that the investment property market fluctuates often and we do our best to offer the best purchase terms we can negotiate. Like any business in the wholesale trade our goal is to offer a product at a price where the customer will be financially successful at their value-add business. We offer investors investment properties which can be purchased entirely or through one of our Limited Partnerships that vehicle is perfect for those investors that do not care to be involved in property management and or the rehab process. The discounts that we attempt to secure are dependent on the property, location, and the current market but can range anywhere from 10% to 50%.

The agents at Prospect Equity do their utmost to find the best deals for clients based upon the knowledge that we have gained throughout years of experience. We start off by doing a basic estimate of repairs and then determine the price point that we believe the property will generally sell for.

Although this idea might sound appealing at first, cutting out the middleman limits the amount of sources available for you to find discount properties. New Western is a great source for finding discount properties because we have developed proprietary technology and tools that are unavailable to the general public. Our experienced agents are constantly in tune with the real estate market and are able to provide investors with a significant degree of knowledge that can only be obtained through experiencing a frantic volume of investment real estate transactions.

Yes! Buying a wholesale property from Prospect Equities means that you will have the opportunity to do as many inspections as you please.

Generally the average buy/ fix/ sell property takes about 90 days to resell from the time of purchase; however, if there is a project that is going to yield a higher return then it can take anywhere from six months to a year to complete the process and still be considered a good potential investment. As any good investor knows, it is important to allow time for delays in repairing and reselling a property that could make the process go on a little longer.

Experienced investors are better able to assess what the risk is and have learned how to manage their business exceptionally well so they are sometimes willing to accept smaller returns in order to tackle a higher volume of transactions. Some sophisticated real estate funds are willing to accept return margins as low as 5%. Such a thin margin may seem petty to an investor with a goal of buying one home per quarter, but if a fund is able to purchase one thousand homes per year and turn them every ninety days then it represents a hugely successful business that can out compete a huge segment of the smaller market. On the other end of the spectrum there are also some discerning investors who refuse to look at anything that doesn’t have a margin of greater than 30%. The investors who only look at properties with large margins generally don’t find as many properties that suit their needs and therefore don’t do as much business or receive much of the gains attributed to the experience that a large volume of transactions bring. The discounts that you’re willing to accept are proportionate to the margin that you’re willing to accept. Successful investors are of course concerned with margins when they look for properties but they are realistic enough to know that they must do transactions to achieve results and gain experience.

Every investor has a different opinion as for how long is the ideal time to hold a rental property. There are several factors to consider when determining your strategy: your ability to buy properties at a steep discount, your future capital needs, your future expectations of the real estate market and the cost and terms of your financing. After considering these factors you must determine if it makes more sense for you to rent out a property for 1 or 2 years and resell it for a profit or if you would be better off holding on to it for a longer term or possibly indefinitely. There are numerous other factors that could contribute to determining your strategy, however, many experts will agree that the main ones are the ones listed here.

Many of the risks involved in a buy/ fix/ rent are the same as the risks involved with repairs and contractors: not estimating repairs well, not being able to resell the property, neighborhood changes, contractor runs off with your money, and potentially having to take a loss on the property. With the buy/ fix/ rent strategy you also run the risk of liability on tenants being injured in the property you own because it’s not safe.

Although retail real estate agents can be a good source, most of them are not accustomed to working with investors so they will not yield as many results as a specialized company like Prospect Equity Partners. Working with retail real estate agents will take up a significant amount of time, which is why there are specialists that exist that work primarily with investors

Although retail real estate agents can be a good source, most of them are not accustomed to working with investors so they will not yield as many results as a specialized company like Prospect Equity Partners. Working with retail real estate agents will take up a significant amount of time, which is why there are specialists that exist that work primarily with investors

A distressed property is simply a home that is typically being sold under fair market value. Most distressed properties are in need of some type of repair but they could just be from a seller in a distressed situation like a foreclosure or a divorce and they need to sell fast and are willing to accept a discount. Traditional financing is typically a bad fit for distressed sales due to the speed at which the seller is interest in selling and the condition of the property.

No. Prospect Equity simply requires that you have an in-office meeting with one of our agents before we will add you to a live property distribution list. In this meeting our agent will inform you about the full process of what to expect from our company and give you information to take home about how the transaction works. You will even receive a copy of our standard purchase contract so you have plenty of time to get comfortable with the terms before you ever visit a property. Our properties are discounted and sell very fast so the in-office meeting is an opportunity for you to ask all of the questions you may have and learn everything about our process before you start looking at deals. After the meeting we will begin sending you properties for you to evaluate. By meeting with one of our agents first it will give them a better understanding of your investment goals and what types of properties to send you.

Being able to tell whether or not buying a specific wholesale property is a good “deal” or not is something that you have to be able to judge for yourself. In this instance, good judgment comes with experience. The agents at Prospect Equities will supply you with a packet containing all recently sold properties similar to the subject property. The information the we provide you with is based on repairs and while reviewing the information the investor must understand that there are a variety of different factors that can change.

The first step in the buying process begins with coming into our offices for a meeting with one of our experienced agents. The in-office meeting is a great place to start because not only will you learn about the process of buying a house and what to expect from us, but you will also be given the opportunity to ask questions and tell us your preferences as well as build a relationship with us.

The buy/ fix/ sell strategy is when you buy a property on the wholesale market, perform repairs to it to improve the value and then quickly resell the property on the retail market.

No matter what you do in real estate there are always risks involved, just like any other investment, and cannot be fully encompassed here. One of the biggest risks involved in a buy/ fix/ sell is a potential loss on the investment. Some risks, such as neighborhood changes, are out of your control. With proper planning you can help to protect yourself against the risk of not estimating repairs well. Other risks include not being able to resell the property or the contractor running off with your money, which is why it is always a good idea to qualify your contractors, never pay for a job until it is complete, and have multiple contractors in your network as backups. All types of real estate investing are risky but the buy/ fix/ sell is one of the higher risk / higher reward types

The buy/ fix/ rent strategy is where an investor buys a property on the wholesale market, performs repairs to improve the value and then quickly rents it out to tenants. The exit strategy here is to retain the property as an asset and rent it out to a tenant for cash flow. It is a common opinion among investors that the buy/ fix/ rent strategy is the key to true long-term wealth and represents a lower risk proposition. One of the benefits of the buy/ fix/ rent strategy is that you can capture all 5 forms of real estate profit:
1. Unrealized capital gain if you buy the property at a discount
2. Positive cash flow
3. Long-term appreciation of the property
4. Debt reduction that occurs if the property is financed
5. Possible tax benefits such as depreciation

After a property is move in ready, a tenant should be found after about 30 days. The amount of time can vary however depending on the demand for rental properties in your area, which may make the process a little longer or shorter. The time that it takes to get a property leased can also be dependent on the desirability and marketability of the property. If you are able to gain access to MLS data or a good Realtor you will typically be able to get a good amount of insight about what other similar properties have rented for in the past and how long it took to find a tenant.

When purchasing a buy/ fix/ rent investors should typically avoid the low end and the high end of the price spectrum. Although properties that are too low in value may look to return a high margin of cash flow on financial review, there are some risks that come along with this such as elevated maintenance costs and properties in high crime areas can be subject to a higher degree of vandalism

Knowing if a product is worth purchasing is a very important step in the investment process and is often times the most overthought. With all of the right tools and resources you should be able to make this decision in a period of less than 10 minutes. Before you make this decision, experts advise that you have access to MLS comps to see what other similar surrounding properties have sold for recently, which will help you determine the after repair value of your property and what repairs will be required to achieve that value.