With hedge funds willing to pay well above the local price to acquire the exact kind of house in their criteria, it can be tempting for wholesalers to jump both feet into working with them. Gavin Timms is here today to give you the lowdown on how to profit from a relationship with a hedge fund without getting burned by them.
Because hedge funds have pots of money to purchase houses in bulk, it seems like they might buy every house that you put in front of them. But Gavin’s been shorted by a hedge fund that backed out of a huge deal when they ran out of money before the end of their funding cycle. It left Gavin with over a million dollars in inventory, and sellers who’d been promised better prices than normal.
Gavin’s going to give you tips on:
- How to find hedge funds
- How to understand what motivates them
- How to protect yourself with better contracts
- How to make a relationship with them work
Selling 500 houses at once sounds like a dream for wholesalers, but being on the hook for 500 houses when a buyer backs out can become a nightmare very quickly.
Watch and Learn:
Listen and learn:
- You cannot possibly understand the reasoning behind a hedge fund’s criteria, so Gavin’s going to show you how to roll with it.
- Why you need to tighten up your contracts when you’re dealing with hedge funds.
- Pay attention to when a junky little house in your market sells for $1.2 million.
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