All Forum Posts by: Cortney Jones

I'm curious to hear what others think about wholesaling a property that another wholesaler has under contract?  

• What do you think of doing it?
• What do you watch out for?
• How do you do it without losing a good buyer from your buyers list?
• Any other insights are ideas . . . please feel free to contribute

Agree with @Ciera Hutson, just be sure that you have a WRITTEN Buyer's Agency agreement in place with your buyer's agent.  The seller is an agent/broker and shouldn't balk at paying a buyers agent fee.  They do that all day long.  If they do, then I would be concerned as to why they don't want someone representing you and your interest.  That would be a red flag. 

Also, make sure the buyer's agent is from a different brokerage office, just to be safe and protect yourself further. 

If you still want the house and they aren't willing to pay buyers agent commission, then definitely use an attorney and a good home inspector and have seller pay for home warranty, just in case. 

What if you did both? I think you need to be educated and know what you're doing, even if someone else is investing in the market for you.  You have to know enough to question them and manage things.  Noone is going to care more about your money then you.  If you get into the stock market with $10k, as an example, knowing there will be ups and downs over the decades AND buy a rental property to start, then you're diversified and have multiple streams of income started.  

Of course, with both options, you need to know what you're doing and in full disclosure, I am NOT a financial advisor, nor do I play one on BP. :-)  Just offering another option for you to not choose one over the other, but diversify. 

Provide your mortgage broker/bank with these other comps and ask them for a 2nd appraisal.  If you're confident in the numbers then paying for a 2nd appraisal would be worth it. 

If it were me, I would feel more comfortable having the house in my name so I fail to see your concern?  Having your money into the deal is a big deal and making sure that you're protected at all points is key.  With the house in your name then you can control things if he doesn't keep up his end of the bargain, and yes, you're right, you can just hire a GC if he flakes out.  This puts you in a positive position with more control and ability to protect your investment.  

Obviously, if you're applying for a loan, youre going to want to run your numbers well and make sure that there is plenty of cushion.  Always plan for worst case scenario, have back up cash for the unexpected and put your agreement with him in writing.  I will do this, you will do that, here is how we will split everything, what costs/expenses will come out and what is considered profit and how will we divide it. 

Your agreement can include you paying him "some amount for his work" but it can be based on the profit from the deal.  That way, as you said, you both have the same vested interest . . . to get the house fixed up and sold as quickly as possible.  He gets paid at the sale closing, just like you do.  

Is it the private lender or the seller that wants you to have $20k in the deal?

If it's the seller, then just ask your private lender for the down payment money early and he/she can secure that with a first at closing, then the remaining amount they are lending can be secured with a 2nd.  Since they are the sole lender, and assumingly have trust with you, they should feel comfortable with that. 

If it's your private lender who wants you to have money in the deal, see if your seller will do a seller carryback 2nd until the house is fixed up and sold.  They would basically just be waiting for $20k of their money until you can get the property fixed up and sold.  Maybe offer them an additional $1500 for doing it. If you are solving a problem for them, this may be another viable option. 

Depending on the situation, there are a boatload of options open to you.  Think about all the players - seller, you and lender and work creatively to find a win-win-win.  

 Account Closed

I usually just leave them up.  As previously mentioned, many will disappear over time, but many will stick around for months on end.  I do get calls from city officials occasionally and I always just figure that they aren't going to remember me specifically so I keep doing it. 

The ones we do remove are the ones we put say in a large church exit area or grocery store/big box store parking lot.  We'll put those up on a Friday and remove Sunday night after all the members/customers have seen them. 

Don't put them on utility poles as that is a violation in nearly every city.  Also, not on mail boxes or US Postal boxes of any sort.  We use roofing nails and hammer ours into 2x1 wooden stakes and then those are hammered into the ground.  

We also use signhammer.com to install them in hard to reach poles, etc. Those tend to stay up a really long time.

Hi @Brian Risi ~

My clients in the Washington DC area have reported that they need to spend about $2000-$2500 in marketing to buy a house.  I typically recommend starting with cheap black and white postcards done through usps.com with a direct response type message.

With only a $1000 to spend I don't think you would get enough traction to start in the DC and surrounding areas.

I would recommend starting off as a birddog for an investor that you meet and like at a REIA - find them a couple deals and put some more money aside, plan on $3,000.00 then start a wholesaling marketing campaign to vacant houses via cheap postcards.

Just saw the 2nd question @Account Closed ~ we use our handyman to put them up.  He has done misc. work for us for decades and he's very honest and trustworthy. 

If you don't have a H.S. student, or friend who always needs money then place a Craig's list ad and define what you're looking for.  Talk to them over the phone and explain what you want and what you're willing to pay. Let them know that you will be spot checking to make sure they do the job right and if they do, there is repeat work in it for them. 

I would first go the route of looking for a referral.  A friend of a friend who has a young person who needs work.

Hi @Account Closed ,

I have a love/hate relationship with bandit signs.  I love the leads they bring in and the money they produce, but I hate the look of them all over and just like political signs think they tend to junk up cities.  

With that being said, if I'm not doing it, someone else will.  

If you have 100 signs put up the chances are very good that you'll buy a house from that, maybe 2.  Obviously, your phone and seller presentation skills come into play too, but you will get enough calls to buy a house. 

If you consider even on a wholesale deal that you may just flip a $7500 minimum profit then that is a 10:1 return which most businesses would kill for. 

I've never put out bandit signs and regretted it.  It's a great lead generator.  Just be prepared for the fact that some people in your city won't like it either.  We've actually had death threats from people who said they would kill us if they saw us out putting the signs up again.  (too much time on their hands)