All Forum Posts by: Chad Johnson

Hey guys,

I'm new to wholesaling, tomorrow I'm placing my "we buy houses" signs out and getting the ball rolling. I want to make sure I don't miss anything when the calls start rolling in, so my question for you, is what questions do I need to ask the sellers that call?

I'm not too familiar with how to factor in equity, debt owed, leins, etc.

I understand how to find out comps and general rehab costs, but can someone give me a run down of how a typical conversation would go? And perhaps (greatly appreciated) a list of the need to know questions I must ask in order to be able to make offers?

I would prefer not to hear "if you don't know what to ask, then you're not ready". I am just getting my ducks in a row here and would like a last minute review/ tips before I dive in and do this. I would hate to be on the phone and miss something.

Your help is greatly appreciated!

Believe me, that's the first article I read before I asked the guys name and was researching the company.

it's a different guy named I believe..Ralph goodman I'm not at home right now so I would have to check my notes. He's owns the eastern oklahoma franchise of 1800 2 sell homes

Jay, both of your posts on here have been comin sense things. Things that don't need to be said. I thank you for trying to help but if you'd like to give input, actually transfer me some form of knowledge or information.

I'm not speaking with the guy until tomorrow so I'll bombard him with the questions then. Overall it sounds like I need some feedback from the mls system on him as well as the structural details of what exactly he is talking about.

In the end, I've got books, a cell phone, and a laptop with internet... Everything I need to make money. Now that I know that I have the ability to access funds, within a very short time frame I will find a way to complete my first flip and I will not lose on it.

I will let you all know what he says tomorrow. If it doesn't work out well with him, or the numbers don't make sense, then I guess I'll hit craigslist hard with lowball offers left and right tomorrow and get this ball rolling.

Well thank you I'm taking every action to get the ball rolling.

Did not know that you didn't have to get approved, I paid $100 today to reddirtlending in Oklahoma to "approve" me today. Does anyone know typical oklahoma hard money rates? I'd like to negotiate with them or move on, and over the years my negotiation style now means "take it or leave it".

To answer another question yes my sister is in the same town I am. I could have her check the mls but do I have her check his real name,, or his company name.. The guys company is 18002sellhomes.

I'm at a bit of a confusion fork in the road here. Now that I know it's that easy to get a hard money lender I'm ready to go. But do I negotiate with this one, get another one, etc.. and what are points? The lender said it was 4 points, i figured i would google it later. Understanding markets is easy for me so whatever I buy will be under market value. But do I use him, try to find my own by making Craigslist calls, driving for dollars? (Eh, tried it, couldn't find a single thing).. Etc. just not sure where to go from here.

Yes all of that is correct... It is starting to sound worse and worse.

But being as he (according to him) does more business than all the other wholesalers and rehabbers combined in my town, it sounds like he gets a lot of houses under market value. So I wouldn't have to search for distressed properties, he would basically just tell me what house he has.

The 5k would be once I started the first house deal. I am not sure if the 5k is a one time deal (he said 5k up front) or if it is everytime (which I would never ever do).

I have not seen any of the homes, or gotten addresses yet. I will get an address for whichever property he tells me about tomorrow at which point I will access the value using basically my car selling strategy.. check the market value, what homes in the area are selling for, etc.

In your last question that is another question I need to ask him. I'm going to assume the 50k or 80k is before rehab.

Last but not least he did tell me to "trust him" and that he'll make me money.

I'm 26 and I'm not rich, but I make more money than anybody I know around my age while only working 5 hours a month, and I DID NOT get to where I am by "trusting people". The word trust in general scares me.

Okay guys I have never done a rehab a wholesale, or anything of the sort. Fortunately my father owns rental properties - both commercial and residential, my sister is a real estate agent, and I have been studying the art of wholesaleing, flipping, and general real estate for months now so I do understand the generalities of it.

My question is this:

I posted an ad on craigslist looking for a mentor/ investor. Someone who would invest with me (using the decent stack of cash I do have) and teach me, in exchange for a percent of my profits.

Today, immediately the morning after posting the ad I received a phone call from a man that owns a wholesale, rehab, and brokerage in my hometown. (one of those 1-800-webuyhouses things)

Being as I am a Marine he seemed fond of working with me since he was an Army vet. or maybe he just wants to make money... anyways.

He wants 5k cash up front and 5.5% listing fee. He told me to get approved through a hard money lender (RED DIRT LENDING) which I've already done. They want 14.5% 4 points, 6 months only, and I need to register a business name. I am now already approved with them.

In return for my 5k cash and 5.5% listing fee, he apparently will let me rehab the homes he finds (which according to him have solid profit margins after repairs). I am waiting for a phone call from him tomorrow in which I will either get a property with 50k+ profits or his other 80k+ profits.

So basically I am paying him 5k cash and the 5.5 percent to find the home, let me buy and rehab, then he markets it online. Is this a good deal or is he just generally attempting to make big profits off of me.

Please, I need your opinions. This is my first flip in houses, I don't want to lose and I want to make the right moves. On the first two cars I ever bought and sold I lost 15k cash, after that I have a 41% ROI but I would like to not make the mistakes I made with cars, on houses.

-Chad