All Forum Posts by: Benjamin Barredo

@john chapman 

"Great! I'm your guy. I'm going to put your house under contract, meaning I'm going to enter into a contract to buy the home. I don't actually have the money to buy your home, but don't worry. I'm going to go out and try to find someone who will buy it. I'll put ads on Craigslist and use bandit signs. If it all doesn't work out in 30-60 days, I'll just back out of the contract. How does that sound?"

What you explained is exactly what a realtor does except is the seller who had to get out of a contact when the realtor can't sell the property. 

They use craigslist and signs as well as the mls, so I don't get your argument. Additionally, the realtor is not expected to be able to buy the house if they can't sell... I mean if the seller knows up front that a wholesaler can't buy and they plan to broker a deal AND the seller agrees to assign the contact to the wholesaler then what does it matter? As long as the terms of the contact are clear and the seller still agrees then it's all good. 

It sounds to me like some realtors and brokers have had bad experiences with some shady period bit truth is, licensed or not, there are shady, unethical period in all aspects of real estate. 

I understand that @P.J. Bremner but I was pointing out that he is a bully. Search him and read his forum comments. You'll see "the pattern" that I'm talking about.

@Jay Hinrichs it is actually in my short term plans (like before this time next year) to get my RE License. You're right, it might be a unicorn dream to make a wholesale deal. Then again, I'm not looking to make $10,000 on my first deal. My goal is more like $2-3,000 and maybe even $5,000 for my market.

But I agree, I would have much more success at this game if I get a professional license. I just don't see how it hurts anyone if I at least attempt to learn the game and get paid now while helping people who don't want to go the traditional route.

@Balencia E. Driving for Dollars is simply driving around your town and looking for houses that are in distress. Type "driving for dollars" in the search box and you'll get a lot of great stuff. There's even an "Ultimate Guide to Driving for Dollars" somewhere on here. Yellow Letters are a type of letter sent to homeowners that advertise you want to buy their house. Type it in as well. A lot of great information.

Welcome to BP. There's a lot of great information and great people on here.

@Pratik P. I like it and I agree. When you "sort out" liens, you just mean finding out what they are or you actually pay them off?

My goal is to help both sides of the deal while making money. That's all the rest of the guys spouting ethics do on a daily basis and unless they were born with a silver spoon in their mouths like Trump, they started from somewhere too, with the same questions. I don't know why this simple forum turned into such a big deal?

Thanks for your input into helping me navigate this world.

@John Chapman So it's unethical if someone comes in and wholesales a deal unless they have the means to purchase it themselves? Why?

Is that the same for a realtor or broker who is starting out? I just got into this game and I have met realtors that I have more knowledge then.

@Jay Hinrichs I'm not dreaming of getting rich my friend. But the low money start is appealing to me and I don't want to wait another 5 years to save up the kind of money I need to get into buy and holds. I have been driving for dollars, cold calling, and mailing potential sellers for a month now and I haven't made a deal. So the "quick" part is dead in the water. I understand it's hard work but luckily hard work comes natural to me. I am a Marine and Iraq War Veteran and I am not afraid of the trenches, sir.

@Ned Carey I appreciate your concern about getting "pumped up" but I haven't been to any seminars. I only know what I read and this fire was born from "Rich Dad Poor Dad". I have turned down several deals because I didn't know what I could do with it. I turned down a deal this morning that I couldn't do anything with. @John Thedford might be a well respected member of this community but all I've ever seen from his is negativity and bullying toward newer members that only want to get a little guidance. I have no time for that.

Thanks @Pratik P. That helps a lot. That's all I was looking for. I have heard 30-45 days is the normal but I've also seen youtube videos (not BP) talking about 90 days and stuff. I thought that seemed a long time. As far as the earnest money from a buyer, that would definitely be for unknown buyers, which in my case is going to be almost all of them unless I know they are players in the area from the local REIA.

Do you put the due diligence on the buyer? I mean, of course I'll do my own to make sure it's a deal, run my own numbers and stuff, but of course I'm not rehabber or contractor so it is still up to the buyer to do their own due diligence, correct?

Honesty with the seller is the upmost #1 priority. I have talked to several home owners and though I haven't closed yet and tell them all during the first call that my goal is to find another buyer and that buyer is usually and investor so the price has to be right. I tell them that out the gate because I'm in no position to buy for myself yet. When I get there I'll add myself to the possibility of buying but for now I let them know I'm the middle man brokering the deal accept I'll cover my own profit and not ask them to pay me a commission, unlike a realtor or licensed broker.

@P.J. Bremner Thanks for speaking the obvious man. I have seen @John Thedford on so many forums just bullying and bad-mouthing people for asking questions. That's the entire point and mission of BiggerPockets.

I would love to buy and hold John but I don't have $10k lying around to throw at deals. I have to build capital somehow and wholesaling is a low cost way to learn the industry while genuinely helping people to find a non-traditional way to sell their homes without paying a pompous broker to juggle their personal home that they hold dear with a countless number of other deals the broker/realtor is also working. There's room for everyone in this game as long as they are honest and playing it straight. I just asked a question for guidance from people that do this for a profession. If you got not actual input except to hide behind your avatar and point the finger at real people who are trying to better their lives as best they can then keep your fingers off the keyboard (shut your mouth).

Again P.J. I've listened to a bunch of podcasts and many of them are wholesalers. @Brandon Turner wholesales John, go ahead and call him out for being dishonest and unprofessional.

Hello BP Investors,

I have a straightforward question - unless you somehow are able to make it complicated.

How do you structure your wholesale deals? With the seller and with the buyer?

Example - the seller:

How long to you make the assignment contract good for before you and/or the seller can walk away? 30 days, 90? Do you generally pay earnest money or a deposit? Do you use a one page contract or several?

Example - the buyer:

Do you ask for proof of ability to buy? Approval letters or lender's contact information so you can call them and prove they're real? Earnest money from them?

I just finished watching Phil's video on Freedom Mentor about 'Controlling the Buyer' and it has my brain asking a million questions.

As a newbie, do you suggest I write the pieces of how I plan to structure my deals down, like a checklist? I think I should. I know me and I'll get so excited I'll take verbal agreements on every aspect and find myself standing alone at the title company come closing time.