All Forum Posts by: Chyrelle Robinson

Thanks for the input guys its very helpful and welcoming for a newbie

@Anthony Smith I totally agree with what you said in the last comment. For me,  there is nothing more frustrating than not getting the question you asked answered, but thats a convo for another time :)

 books on copywriting, and direct response marketing were extremely helpful to me. I have a bunch of them that are great because they include the exact examples you are looking for. They do not pertain to real estate, but once you see the formula used to draft the copy you will be able to apply it to anything you want. I will gather the titles and send them over in a PM.

@Chyrelle Robinson

OPM my friend. If you find a deal to flip with lots of profit, instead of assigning it borrow the money from HML, complete the flip, pocket profits. Another option: borrow from friends and family for buy and hold. If I waited for cash in my account to buy every rental I own I would own quite a few less. There are always alternative sources of funds. Good luck whatever you choose.

Glad to hear @Chyrelle Robinson . I should add that I do fully disclose, but have never had someone not want to do business with me when they know that I'm an agent. It's actually helped bring credibility many times. I also bring our properties under contract. 

Here are some other ways that can help you find the right deal that's a good fit for a cash buyer. 

1. Look on Bigger Pockets and connect with folks that purchase in your area and see what they are looking for and then go shopping.

2. Go to your Local Investor Meetup and find out who is buying, find out what they want, and then go shopping for properties.

3. When you do get a Property under contract, Look up on MLS or other sites all cash buyers who have bought around that property in last 6 months and send them a flyer or a postcard of you, your featured property and about your company.

4. Network with Agents, ETC and find out who are the BIG investors in your area.

You don't need a lot of Buyers to have a decent business.... I would focus on getting to know the heavy hitter buyers who buy quite a bit in your area. Hope this helps. Brett

Interesting, especially the issue of potential conflict of interest.Disclosure is important here

Good Afternoon @Chyrelle Robinson,

Welcome to BP.  I am also fairly new in this business as a Realtor and Investor.  I have mentors on both sides of the fence and this is what I was advised and what I practiced. Always, always, be transparent in your interactions. The Sellers/Seller's Agents and My Broker were both informed. My Broker expects to be notified of all transactions I participate in.  Therefore there is a notice that I complete and turn in when I am purchasing an investment property with myself as Buyer's Agent. My Broker determines whether or not there will be an adjustment to the commission cut that he gets. In fact they were happy to review the contract and the deal with me. 

I hope my experience helped you.

What is your motive? Strictly money? If you operate as a "wholesaler" you don't owe anything to your broker. If you have the ability to purchase instead, buy and hold rentals will pay a lot more money over time. It isn't fast cash, but when you get to 15K, 20K a month income it will be life changing. 

 Being a licensed real estate agent, there is an inherent conflict of interest when you attempt to participate in a transaction as a wholesaler.  To avoid this conflict of interest, you must keep your activities as an agent and your activities as a wholesaler completely separate.  Even then you run the risk of the appearance of a conflict, and the resulting potential lawsuit.

The conflict arises because of the different legal roles of an agent and a principal.  When wholesaling, it would be important to disclose to the seller that you are a real estate agent, but in this particular case you are not acting as an agent, but as a principal, operating solely in your own best interest, with no agency duty owed the seller.

if the seller, their attorney, the real estate commission, etc. is able, after the fact, to make the case that in your wholesaling activity you were not a principal, but an intermediary, then you would be potentially subject to fine, license suspension or revocation, liability for seller's lost income, and possibly treble damages for deceptive trade practices.  The broker you are supervised by, as well as the brokerage firm holding your license, would be similarly exposed, which is why many brokers will not hold the license of agents engaged in wholesaling.

It is important to know and understand the legal landscape before undertaking any endeavor.  Since the applicable laws are state specific, I recommend you invest in getting the legal opinion and advice of a well informed attorney with an in-depth knowledge of the laws, rules and regulations promulgated by the state real estate commission before commencing your wholesaling business model.

Hi @Chyrelle Robinson , 

Welcome to the world of wholesaling:) I'm a wholesaler and got my license because I thought it'd help my wholesaling and it did so consider yourself ahead already. It's too bad that it hasn't worked yet to find some local help. I usually do suggest finding a deal first as it increases the chances of landing a mentor, but I'd also say that finding a deal is the 1st step even without one. Have you read The Ultimate Beginner's Guide to Wholesaling? It breaks down how to find a property and run the numbers. When you have an actual deal it isn't too hard to find buyers and finalize it. (knock on wood) Ultimately, I'd work on getting the right deal and then see if you can find someone in your area to split it in exchange for guidance. Getting that experience and peace of mind is invaluable, but I'm sure you know that already. 

To some degree I'm encountering a similar situation: having a real estate license and finding a broker that will permit me to wholesale real estate. I'm also just starting to actively market to find good deals. 

I guess the brief summary would be something like this:

1. Talk to your broker (if you have one), because you might need to switch.

2. Talk to an attorney and / or title company. They will give you good guidance as to how you can operate with this hat on.

3. Decide how you are going to find off market properties. They are just that, off market, so you can't really look on the MLS.

4. Start mailing or driving for dollars or posting bandit signs or whatever you're going to do.

5. Find a deal. At this point that request for mentorship will be meaningful when you engage mutual self-interest. As someone to help walk you through the process - contract, contingencies, title work, etc. - and split the deal. As they are fond of saying on the podcast, part of a deal is better than all of no deal.

  If you haven't already, the Ultimate Beginner's Guide Real Estate Wholesaling gives sort of the blueprint you're asking for.

Best of luck,

JTM