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Updated over 6 years ago, 07/05/2018
Need Advice about Wholesaling
#4 All Forums Contributor
- Lender
- Lake Oswego OR Summerlin, NV
- 61,820
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#4 All Forums Contributor
- Lender
- Lake Oswego OR Summerlin, NV
If you understand the concepts then what are you specifically asking for. ?? that could help get you some concrete answers.
Here is some feedback
I was at a conference a few weeks back and I suspect half a dozen or so of the bigger wholesalers as I would define them in the country were there as well.
what they all had in common.
1. MASSIVE marketing budgets. IE 10 to 50k direct mail pieces a month. Billboards Radio Ads etc etc.
2. Sophisticated CRM and follow up systems.
3. 2 to 3 or more closers ( real people that the second the lead came in they were pounding on the door) now you will have others on BP who qualify folks on the phone and only work the with most motivated.. and I suppose that works were you have little competition or your competition for inventory is not keen.. these folks were in bigger MSAs.
4. A lot of them were closing on the inventory and doing light fix up to then resell.
Most if not all at that level were licensed brokers in their states.
As for how hard it is.. that goes without saying there is nothing tougher in the real estate game than this.. simply because you need to be proficient in all aspects of the transaction..
so I guess you just have to decide which slice of the apple you want and how much capital you have to throw at it .. how much time you have and your sales and closings skills.. which again listening to the guys in the room these were no wallflowers.. LOL
- Jay Hinrichs
- Podcast Guest on Show #222
The best wholesaling advice I give to people is to try something else instead is speaking tens of thousands of dollars on marketing to get one deal.
I can do deals from networking on BP and good old fashioned realtors, no direct mail needed
I'm not interested in wholesaling, but am doing direct marketing to try to find good deals for myself. Most people who respond to direct marketing won't be willing to sell much below market value. After reading input from people on BP I have come to agree that it is a waste to not have an option to work with 'non-motivated' sellers by listing their property. For this reason I'm getting my RE license.
Also, I've calculated the cash-on-cash return for buying a property with cash for 65% of market value, and I can make the same return if I finance a purchase buying at 80% of market value. This means, if a seller can wait even 3 weeks to get their money I can have a lot more flexibility in my purchase price.
I basically need to know what to do when i get a house under contract
Hey Isaac!!
When you get a house under contract (typically the hardest part, which would mean that you found a house that would meet an investor's criteria and the numbers made sense) you have to find a buyer for it.
So you'll first have to send your signed contract to your attorney/title company so that they can do all of their work checking the title and whatnot. Then after doing that you'll have to locate your buyer who will most often than not come in with cash/hard money since they're able to close quicker with the least amount of friction. Finding your buyers won't be hard if you got a good deal under contract. You'll want to be very upfront in letting them know that you own the equitable rights to the property and that you want to assign the contract over to them. If you post your deals here in BP you would write something explaining that on your description (there's a few wholesale deal posts in most markets if you check the marketplace here in BP).
If they like the numbers, they will typically want to check out the property, and that's when you would schedule a time to show the property (make sure the seller is okay with this when you first get the property under contract). If after they walk the property they like what they see and it all makes sense, then you'd have them sign the assignment contract and send that over to your attorney/title company.
From this point on it would depend on who your attorney/title company is but it should be fairly simple. After the title work is done, they'll want to schedule the date for all parties to go in to sign all the paperwork (this will most likely than not be on the date that you and your seller agreed on the purchase contract, or it could be before if all parties are okay with it). Call your attorney/title company and have them explain the process to you since they could operate a bit differently.
P.S.: My only advice is always be honest and up-front with all parties and always try to create winning scenarios for everyone as that gets you repeat business and a good reputation. Lastly, just go out there, learn as much as you can, help those who want to be helped, and give back :)
This is the best paragraph I’ve read since being on here
I'm happy I was of help brother! Just try and learn as much as you can about the entire process and filtering out bad deals from the good ones. Make sure the numbers work, that the ARV is reasonable, that the repair estimates make sense, that you factor in the buyer's profits and costs, and you should be good. I wish you the best of luck :)
I know your in a different state but is there anyway you can mentor me if you don’t mind
Hey @Isaac Josey! Any mentorship stuff is against BiggerPockets' rules. I would recommend you search the forums here and watch BP's YouTube videos on wholesaling and their interviews on wholesalers. I don't think you should pay anyone because all of this information is public. There are so many resources and wonderful people here :)