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Updated over 11 years ago,
Ready to Pull the "Wholesale" Trigger
Greetings All,
I'm ready to jump in as a Wholesaler; Sharon Vornholt's podcast sealed the deal.
I'm new to RE investing but I'm not new to real estate. I hold both a real estate broker and general contractor license. I've spent the last 30-years working in the residential real estate industry doing light renovation and remodel work. I am an affiliate member of the local Association of Realtors(r), and belong to two NorCal REI groups.
I made this decision because, initially, I can't put too much money at risk. Right now our business is "feast or famine" and I'm tired of the emotional swings. I want to be financially independent, and Wholesaling seemed a good place to start.
My plan is to do exactly what Sharon V. said to do:
1. Start to build a list of investor/buyers
2. Make an investment in marketing (absentee/probate)
3. Be consistent in my marketing
4. Determine motivation of sellers
5. Determine scope and cost of renovation work
6. Make offer using the "70% - Rule"
7. Present accepted contract package to investor/buyer
8. Assign contract
9. Go to bank
10. Repeat
I belong to MLS so I can "comp" a property in 5-minutes. I've got a panel of sub-contractors I work with who will help me price out the renovation work.
I plan to follow the project after I assign it. I want confirmation that my numbers and projections were correct. If that is the case, I suspect, after wholesaling a couple of these, I will morph into flipping them.
Here's the downside: I live in the Sacramento area of California... Not only has the low-hanging fruit been picked, but a hedge fund came to town last year and sucked all the oxygen out of the air.
Probate is, of course, a moving parade; I'm not so sure about absentee owners.
If you see any glaring holes in this plan, I'd like to hear about it. Also, if you can augment this with additional ideas, I'm very open to that.
Thanks in advance,
Tom