All Forum Posts by: Dustin P.

So your agent found you the deal, you did nothing, and you don't want to pay your agent a commission? I'm a little lost on that one

What are the comps telling you to do?

I wouldn't waste my money on these courses. Instead I would find an experienced flipper, offer to partner on a deal, maybe bring the deal to him if you can find one, and agree to take a reduced amount of the commission in order to be involved and learn about the process

Become an expert. Learn how to comp accurately, and quickly. Comp the property before you even go see it. Get good at estimating rehab. If you run the numbers with an estimated rehab based off pics before seeing it and it doesn't work, tell the wholesaler what your ballpark number would be and make sure it's possible before you see it

Essentially you're saying that you don't know what you're doing and want to know how you're going to buy properties. You do as much learning as you can, and then you jump into the best deal you can find, and hopefully break even or make a little bit of property. Or you just spend years learning and doing nothing lot a lot of investors do. There's really no middle ground

If it comforts you, most people go over budget on their first few flips, a lot of people don't make a ton of money their first few flips, think of it as an education. But there are hundreds and thousands of investors buying properties from wholesalers every year and it's pretty unlikely they are all losing money on them

I'd also recommend getting multiple contractor bids. It'll help you understand the rehab numbers better and you can have guys ready to do the work once you finally lock a deal down

Sign it up in personal name and either assign to the LLC or quit claim to the LLC after

I would get your real estate license if you haven't already, because it's going to provide you a ton of resources to use as a wholesaler / investor

But without your license, I would befriend a realtor and have them pull a list of buyers who have purchased under an LLC. Here in Phoenix that's pretty simple to do, not sure how it works in your market. I'd go back 6 months to a year and then use your state's corporation commission website to find the members of the LLC. Then use whatever tools you have at your disposal (Skip trace, looking for numbers on LLC docs, looking for their number on MLS if it's an owner/agent, send post cards to their tax mailing address, etc) to get numbers for the managing members

Have a script you can use to call them and ask them if they are buying, what they're buying, price points, rehab level, neighborhoods, etc.

The good thing about this strategy, although it's a lot of work, is that you are connecting with actual buyers who have actually recently closed deals

I can't comment specifically on any programs but I know that Jamil and Keyglee in Phoenix do a crazy amount of deals, and also have a great disposition list (They've sold a few of our deals) so although I can't vouch for the program I can vouch for the fact that they're doing something right!

Not sure how I did 15 wholesale deals off the MLS in September then, magic I guess!

But anyway, it is possible to wholesale off the MLS. Every distressed or out dated house on the MLS is a deal at the right price. It just involves making a ton of offers, being quick on deals that get listed low, having enough money to put out solid earnest money (At least 1%), great market knowledge and a willingness to waive inspection period if necessary to get the deal

I have a holding company (with my broker as the managing member) that I use as the buyer. I always offer a short inspection period (3 to 5 days, or none, depending) and give at least 1% earnest money. I give the listing agent typically a short response time and also a short close, 10-14 days typically

I make roughly 10-15 offers on the MLS to get 1 deal under contract, and cancel usually around 10%. I know there are at least 5 large wholesale companies in Phoenix that do the same

A real buyer does not care where you got the deal, as long as the numbers make sense they make sense. If the house needs a rehab and it's listed at $250k but the deal makes sense at $180k, offer $180k. Will you always get the deal? No. And maybe you'll get it but not right away. Maybe another investor out bids you and then cancels at the end of your inspection period. Stay in that agent's ear and let them know your buyer is ready with his lower offer but offer that will close. Ask these agents for pocket listings. Save a list of every listing agent whose properties you offer on and blast out a request for fixer uppers once a month. Drive the area, drive the comps, call coming soon signs, take down addresses of boarded up or vacant houses, stop in at dumpsters and talk to flippers and build your buyer's list

You're going to be a newbie until you aren't. That's ok, embrace it and learn

Almost every deal we did off the MLS last month was closed under list price. Some 30k, 40k, 50k, 60k+ under. The list price is an arbitrary number and at the end of the day make the offer where it makes sense and you will get deals

In my opinion, no. Use that money to get your license. Start making offers on the MLS. Use the MLS to find cash buyers. Call agents, call buyers, learn by doing.

I wouldn't say BP is necessarily anti wholesaling, I think a lot of investors nowadays get their deals from wholesalers because finding properties by making offers, forming relationships and/or dumping a ton of money into marketing is either expensive or time consuming. You do have the same couple of people that like to troll the forum over and over that they never say anything about, but what are you gonna do