All Forum Posts by: Stephen Fryer

@Damien Cox 

If you are finding a lot of seller leads that are under water, you may want to find a short sale specialist in your area and establish a relationship. Perhaps you can refer these leads and work out a deal for a finder's fee or percentage of the sale if they are able to convert. This way you can monetize the lead.

Stephen

HI Fez.

You could refer this lead to an agent that you know and propose a split if they are able to sell. That way you could still realize a few dollars and strengthen a relationship.

Good luck.

Stephen 

While I do not profess to be a lawyer, when I read that section of the act I see a very important phrase "who for another". A broker or real estate agent is someone acting on behalf of another person or entity to help them in the process of buying or selling a house. There is only one price and one transaction. The agent then receives a commission or fee for their services of bringing the two parties together.

In my mind, a wholesaler is buying a property for themselves and then selling it at a higher price, making their money on the spread that they create in the two transactions. 

I see them as two separate and distinct business deals.

To illustrate:

Transaction 1:

Seller engages an agent to sell his house for 100K

The agent finds a buyer and brings them to the seller. 

Buyer purchases the property from the seller for 100K

Seller pays the agent 6K for his services.

Transaction 2:

Wholesaler approaches a seller about the purchase of his property. 

Seller agrees to sell it for 100K.

Wholesaler finds a buyer willing to pay 110K.

Wholesaler purchases the property for 100K and sells it to the buyer for 110K.

Profit from the deal 10K.

At no time in the exercise is the wholesaler representing anyone but themselves. That's probably why the A-B/B-C transaction is good to go.

Stephen

@Carla Patterson.

I thought what you said was very insightful. There is a lot that can be learned from this site and it provides an opportunity to pose questions and learn in a supportive environment.

@Douglas Stewart

Congrats on your decision to pursue a career in real estate. I am certian that if you apply yourself you will do well. While I am not really experienced enough to profess to be anybodies mentor, I could make a few suggestions. Start by reading the Ultimate Guide to REI. It's free and can be found in the learning tab. It offers a great overview. If you want to learn about wholesaling, marketing or landlording, set those words up as your keyword alerts. You will quickly find people that provide interesting insights. Ask questions and engage. Listen to the podcasts. There are lots of great ideas about how to grow a business and you can connect with the participants afterwards to follow up with questions.

Real estate, like business or life for that matter, is all about leveraging relationships. You can use this site or your local REIA to develop those relationships, but it will take a little time. OMG. I sound like my father. when the heck did that happen. ;-)

Good luck.

Stephen

HI Frankie.

Welcome to BP from a fellow Canadian. I live in Ottawa and invest in SWFL. BP is an awesome resource with many dedicated investors willing to help. I have found the podcasts to be particularly helpful and motivating. Shoot me a line if you want to share. 

Stephen

@Jason Quick.

Would it be fair to say that the agent represents either the buyer or seller in the transaction and is paid a commission for the services rendered.

The wholesaler represents themselves and profits from the spread that they create in the purchse and sale of the property.

Stephen

Hi Michael.

The house I wholesaled was in Fort Myers. I live in Ottawa, Canada. I never visited the property. I found the house through a direct mail campaign. All of my contact with the seller was by phone or email. I had $500 invested in EMD, but the Due Diligence Clause allowed me to walk away and get my deposit back. Had I decided to back out after the 15 days, I would have forfeited the money, so I have to work fast to get an inspector into the property and start marketing to get a sense of the response and whether I have a deal. One of the challenges of working from out of state (country).

I think that it was Wendell De Guzman that said money loves speed.

Stephen

Hi Gabriel.

Finding motivated sellers is half the battle. In this case you have an opportunity to help them avoid the severe financial impacts of foreclosure. Selling the house for $100K would likely be a great benefit.

If you are wholesaling and have already established that the ARV is $200K then, depending on the repairs required, this could be a good deal. You would have to complete your analysis to make sure.

Best of luck in the deal.

Stephen

Hi Paul.

I started in January. I began with a direct mail campaign. I closed my first deal in June. 

I like Joe's approach. I've seen both throughout the different posts. If you have a deal, the buyers will come. If you have a buyer with cash, then fill the order. Many ways to skin a cat (sorry cat lovers).

Stephen

Hi Dennis.

Welcome to the club. You will find great resources here that will help you succeed. I am a new investor as well and only wish that I was aware of BP before I started. I'm pretty certain that I could have escaped  some early challenges. Take advantage.

Stephen