Wholesaling in Reno, NV?

Question

I have started my real estate career in Reno, NV. Specifically wholesaling properties. I'm just going to make this short, simple and sweet. My questions as far as wholesaling in Reno, NV are: What is the law as far as assigning contracts in Reno and Re -assigning the contract for a fee? I can't find an answer anywhere on the Web or here on BP in regards to this question. And my 2nd question is, What is the best way to get started? Should I be looking for properties to put under contract first and then investors to assign my rights to? Or should I build and be-friend a bunch of local investors to assign contracts to? You're professional assistance and help is greatly appreciated.

Thanks ahead of time,

Local Reno, NV Real Estate Investor/Wholesaler

David O'Connell

Thanks ahead of time,

Local Reno, NV Real Estate Investor/Wholesaler

David O'Connell

Michael S. Helton · Answer

@David OConnell welcome to the party!

First of all, I would say do not worry much about building your investor pool.  I will buy any and all properties where the numbers make sense....so just sell to me!  ;-)  Seriously though, there are many investors in Reno, so come to one of the local Re Investor meetings, network and pick a few people you would like to work with when you find a deal.  It is good to have choices of investors, because some of us want different kinds of properties or are looking for different profit margins.

From what I hear talking to other wholesalers, the hard part for you is going to be finding the deal.

Inventory is low, prices are on the rise and many people are scouring the market for good deals.  So, if you find an opportunity you should have no problem with someone like me quickly offering a solid no-cash transaction.

As far as the paperwork, I do not have it on hand, but I will see what I can dig up for you.

Keep us posted on how your adventure into wholesaling is progressing.

Account Closed · Answer

I do not have a direct answer to your question but as a lifelong (until about 7 months ago) occupant of the Reno / Sparks area, I would say to stay the hell out of the area from an investment and as an area to live in. The bottom line is that the market is once again artificially super* high as a result of speculation (where to begin, Tesla is no.1 on that list) I've seen the prices go from a "we're some middle of the desert nowhere" to "this is the place to be" to crap again so quickly that I'd like to just caution everyone. When the market in my home tanked, it was BAD. There are still shopping complexes that are unoccupied from the 08' incident.

Reality:

It was totally apparent that Tesla was going to choose Sparks as it's new home with or without the tax incentives that our governor offered (*think about it, one of three? lithium mines in the world is just north of Las Vegas?. think of the nightmare that a company would go through trying to get regulatory permission to transport truckloads of it across state lines). They're going to be about 30 miles outside of Sparks; that's a done deal now. The bottom line is that there really aren't many descent jobs in the area; there's gaming (think minimum wage and easily replaceable) and a minimal tech industry in addition to menial labor positions that also don't have stability or pay. OK, in addition to that, how many well paying jobs has Tesla agreed to source from the area? ZERO. ZERO. and all of the claims that were in the paper that boasted a >$20/hr wage that created all of the hype? Redacted days after they were published. The bottom line is that Tesla is going to "create" more menial factory jobs that don't pay a survivable wage to anyone but a select few engineers and executives (think, 5-10% of their workforce at most).

I'd love to be back home but there's no way that I'd even consider buying or even renting at the prices that are out there. Maybe I'm cynical because I know how the economy of that are is supposed to be? Hopefully my insight is useful to someone.

Opinions?

Account Closed · Answer

the good news you can assign contracts in Nevada, the bad news as mentioned Reno is a very hot area with low inventory

Sarah Brown · Answer

Hi David,

Congratulations on your new venture!

My name is Sarah, mom of 3, buy & hold investor, hard money lender, business owner.....

Books are fantastic, I've read 100s.  With that foundation/education in place, I then lean on my team when I have questions like yours.  My title girl is fantastic and will answer any and all questions pertaining to contracts, assignments and title.  It is her job to stay current on these topics.  Tell her what you're looking to do, ultimately as she could be a great source of referrals and connections.  Yesterday she sent me a flipper looking for money. Tell her I sent you!

Western Title on Kietzke

Sherry Baker

Escrow Officer

(Will not let me post her contact info)

Additionally, (I am not a lawyer!!) but I sleep better at night having all of my document templates (contracts, leases, agreements, addendums, assignment clauses etc etc) drawn up by my Nevada attornies vs a template on the internet.  Pay up front for peace of mind later on.  We've worked with this firm for years with all of our businesses on many matters including entity work.  Discuss that too by the way for liability and tax considerations.  You can tell them I sent you too!

Drinkwater Law (also on Kietzke)

(Will not let me post their contact info)

Also, I would love to be added to your wholesale buyer list.  The one thing I don't have is time to source a lot of my own deals.  Since I hold for the long haul and have my own financing in place, I am open to different properties, conditions and selling scenarios.  Sometimes I'm able to pay more than the average flipper who needs their money on the front end.  I love creative - let's do some deals!  Plenty of cash on hand so if a fast close is what you need to get the deal done, I'm excited to get you paid fast for finding them.

Also about Reno:  are the deals harder to find?  YES.  But they're out there.  We just closed on a great duplex last week all fixed up through our realtor (also great!! - Jim @ Remax Carter-Geer).  Priced quite under market, great cash flow in an up & coming neighborhood (Riverside district). They're out there!

Contact me if I can be of further help to you.

Tim Farrell · Answer

As with Michael, I will buy any wholesale deal you come across providing the numbers make sense.   Just make sure when you write your contract you state that this contract is assignable.

any questions shoot me an email.

Jared Vidales · Answer

How it the wholesaling competition in Reno? Is there much distress?

David OConnell · Answer

Thanks for the information. I'll check that book out. Really appreciate the update. Also still looking for a steady mentor that is currently wholesaling that's interested in teaching along with benefitting from the leads I bring in.

Please respond with any advice or knowledge on how to pursue this as well.

Thanks ahead of time.

Ken Deboy · Answer

Just put a clause in your purchase contract that grants you the right to reassign (sell) it. For what you seem to be trying to do, sounds more like you're buying an option on the property instead of the property itself. "How To Make Money With Real Estate Options" by Thomas Lucier has lots of good info that you might find useful.

David OConnell · Answer

Thanks for the reply and information Michael. Although I Do still need the answer to my first question. I have no clue what the law is as far as assigning my rights to property in form of a contract without making it look like I'm selling a property without owning it yet?

Please, if you or someone can get this answered for me I would definitely be able to sleep better. Lol

Thanks

Wholesaling in Reno, NV?

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