Wholesaler in Nebraska Looking for a few Pointers

[Ethan Hamilton]

Hi All,

First and foremost let me say this forum is top notch! The two things that strike me about it are 1. Everyone is here to give help/guidance which is really cool. 2. Everyone here is incredibly passionate about REI which is very inspiring and makes me really want to make it my career.

I have a slew of questions so whether you can answer one, or all, your feedback is going to be very well received and highly appreciated so thank you all in advance. I'm new to wholesaling but I'll give you a back story to allow you to kind of gauge my experience when responding.

I graduated from the University of Nebraska Lincoln (GO BIG RED!) in August of 2009 with a degree I haven't used to date in Broadcast Journalism. I quickly figured out the sales world was much more appealing and would allow me to make more money quicker so after 2.5 years in staffing, I finally couldn't take the 60 hour work weeks and quit for a 40 hour week job in software sales. I'm entering month 2 in this job.

I bought my first 3/2/2 split foyer in Lincoln June of 09 before my graduation and have since moved to Omaha for work and to marry my wife. I encouraged my wife to buy a house here in Omaha (again a 3/2/2 split foyer) here in Omaha in 2011. Summer of 2012 with my brother returning to Lincoln for a Master's program we bought our third 3/2/2 split foyer and currently are holding both rentals in Lincoln. My dad works for the county assessor for Lancaster County (where Lincoln is located) and he built spec homes in the 80's so I have some skills but nothing rehabber worthy so I figure my best bet is wholesaling.

The bank will lend us enough for one more house, but my wife and I have a debt to income ratio that most banks scoff at even though we have great credit and no debt other than the houses. We'd like to pick up a 3rd rental in Omaha and then get serious about paying down the debt or pay off a house and HELOC it to get a 3rd rental, any thoughts on which way to go?

This post is about questions I have about wholesaling however. I'm developing a website with friends from college and plan to market via facebook ads and google ad words. Anyone have success with these forms of advertising?

I've heard a lot about bandit signs and post cards/letters. Any thoughts on which would be better in a very flat RE market like Omaha/Lincoln that wasn't very affected by the recession?

My big questions are around contracts. Anyone have any experience assigning contracts in Nebraska or is a double closing easier?

Do I need a lawyer to write up purchase and sell contracts? How would I create an out (inspection) clause if I didn't? Where would I look for one of these if I could use the state of NE version of these contracts?

Does networking with probate lawyers really work? I guess it would depend on the relationship you have with the lawyer? Any tips on this?

Better luck closing with a lawyer or with a title company?

Tips on where to purchase lists if I did go the yellow letter route? Out of state or pre foreclosure lists better?

Also in setting up an entity for a wholesale business, is an LLC sufficient or S or C Corp? What are the advantages?

Think that does it for me. Again thanks so much in advance. My goal is to hopefully help the next generation of real estate investors and pass along what I've learned. All the best!

-Ethan