Quote from @Michael L.:
@Jose Garcia, check your state laws to make sure wholesaling is legal and that you don't need a license to do so. I'd also like to add that if you do choose to wholesale, please do so with integrity and honor. Many are giving wholesalers a bad name by doing shady deals and having unlawful practices. Other than that I say "go get em champ 🏆". Best of wishes to you💪🏼!
There it is. Often interpreted as haterade, one of my pet peeves is the profits some wholesalers try to make. Here's why. Spoken in terms of average and median values, in most circumstances "the market", any market will only support so much sales price. With the difference between a property's sales price and the amount of its encumbrances being equity, eyebrows start to raise with so much as the appearance of skimming and/or other shenanigans, which the 2008 fallout brought us in the form of foreclosure prevention acts protecting homeowners against...operators with less integrity than others. :)
Regularly seeing wholesalers ask close to if not retail values for property, and/or other shenanigans, like advertising sub-to terms, a violation of the due-on-sale clause seen in most if not all mortgages, even the sale of property, considered licensee activity, when all they have is equitable interest in said property, at best. Now beginning to see municipalities regulate as in, requiring wholesalers to get licensed, I can't help but wonder what lines were crossed, who lost their life savings for that to happen.
Think of real estate as an eco-cycle. Everyone eats when everyone acts right. As a wholesaler, you'll need a network of flippers and buy-and-hold investors along with a, not so much "investor friendly" but, an investment-knowledgeable real estate broker/agent on your team. A rockstar who will be happy to provide sales and rental comps, a CMA, when the best you'll get from Propstream is an automated valuation (heck, I'll even provide census data!) in exchange for: the first dibs at buying if inclined or circulating a deal to their buyer/investor base before you even have to market it, or a listing appointment with those that fall out, especially because the seller needs more than your MAO allows and, you won't see this often because investors feel they have to play the field but, marry them! Yes, marry as in, sign an agency agreement because who do you think we call when we can't so much as walk the property to determine its value or put a sign in the yard because the Seller doesn't want or can't have showings!
Now, this may very well reduce $50,000 home runs to five $10k base hits but, like Michael said, operate with integrity and honor, lead in a spirit of service and reciprocity, and the rest will follow.
