A signed contract doesn’t always mean a good deal.

One thing that can catch wholesalers out is getting so excited about securing a property that they rush through the numbers. The seller accepts the offer, the deal looks promising, and then the repair costs come in higher than expected. The buyer wants a bigger discount, holding costs eat into the margin, or the deal becomes harder to move than anticipated. I’ve learned that getting a property under contract is only part of the job. You also need to know who is likely to buy it, what they can realistically pay, and what could go wrong before you commit. A few things worth checking early:

Repairs: Leave room for unexpected work, not just the obvious fixes.
Your buyer’s numbers: Work backwards from what an investor can afford to pay and still make a profit.
Your exit strategy: Know how you’ll move forward if your first buyer backs out. What’s been the bigger challenge for you so far — finding motivated sellers, negotiating the right price, or getting a buyer to commit once you have a deal under contract?

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A signed contract doesn’t always mean a good deal.