All Forum Posts by: Duncan Hayes

It’s just wholesalers looking for a deal. I wouldn’t worry about fraud. They may not offer what you want but that’s the choice you have to make if you go that route. 

Research materials and their cost. Connect with contractors. Best way to get better at anticipating these numbers accurately is to learn. 

Hey BP. I’m curious if anyone has had success renting by the room. I have two condos I can purchase on terms. Both 3/2 and over 1100 sqft. They’re in a nice area of Houston, Bellaire area. Both also have 2 car garages. 

Both these properties have a HOA of $365 so with top rents the cashflow would be there, but not by much. I was thinking of renting by the room to make enough cashflow possible to where everybody involved wins. Is anyone having luck renting by the room in Houston?

Thanks in Advance! 

my first deal came from an agent. I haven't done one with an agent since though. I met the agent, she was a new agent and I was new to wholesaling. she was sending me leads daily. one day she sent a lead that ended up being my first wholesale deal. my assignment was $7k, I gave her $1500 cash for sending me the lead. 

My opinion; pick batchleads.io instead of propstream. Data seems to be more accurate. I've used both, as well as propelio and reipro. out of all of them I prefer batch.

welcome to the REI game. I'd say that you can find these deals all over the place. there are tons of investors that only do these types of deals and do many of them a month. seller financing is not my first go to though. we come in with terms offers, which is basically agreeing to paying x amount until the debt is paid off. seller financing implies there will be a down payment and interest to pay. we don't want to pay those, especially if the house needs some work. in the event we have to, we want to be treated like a bank customer if the seller wants to be treated like a bank. 85% of homes are bought with 0-3.5% down. interest rates are around 3%. and I get 30 years to pay the bank off.

typically when we're looking for homes to buy cash, if the seller wants the current full market value and not a discounted cash sale, that's when we bring up selling on terms. the deals are out there, you just have to figure out how to target them. 

good luck, reach out if I can be of any assistance. 

 find someone that wants to buy it and sell it to them using owner financing. collect a down payment and monthly payment. throw an interest rate on there and get more money over the course of the loan.

let me tell you how to fix this and still be able to wholesale.

1. Locate transactional funding.

2. Locate a deal.

3. Sign purchase agreement with seller.

4. Submit to title/RE attorney for title work.

5. Close on deal.

6. Sell deal to end buyer same/next day.

7. Pay back transactional funding.

8. Pocket the rest.

Congratulations, you've just completed an ABC transaction. Problem solved. 

@Chris John if the home can sell for 200k right now then that seller wouldn’t be speaking to me. Is the home in retail condition? If I put a beautiful 200k home next to yours will the retail buyer pick yours over the one with granite counter tops and hardwood floors? This solution is for sellers that need it. Or want to collect some cashflow to cover recurring bills each month. It’s not for everybody.

In 10 years you can’t come back to me and ask for higher interest because it’s not written into the contract at time of sale that we agree to that. What money is worth 20 years from now has nothing to do with the deal today. On a fixed interest rate loan, can the bank come back and say, “oh 3% isn’t cutting it anymore, we want 7% now” 15 years into your fixed rate mortgage? No. Seller got to evade capital gains tax, they got full fair market value of the property at the time without repair, and whatever headache associated with the property becomes mine. How would they get all those benefits and rightfully be able to renegotiate years into the deal? Let’s say you buy a house for 200k and in seven years it’s worth 350k. Can the bank demand more money because the house is worth more than what they sold it to you for and they’re having sellers remorse? No.

If the seller is okay with terms then that's fine with me. If they want to become the bank, that's also fine. But I want to be treated like a bank customer. Again, this is solution based and if it's not the solution the seller needs/wants then there's no obligation to sell this way. If the home was a 200k home and is already updated, they'd either list it or sell FSBO for what they want to get for it and they have the ability to turn down 190k offers. Those folks generally don't have headache associated with the property either. When you're annihilating a huge stress factor for folks, the money isn't the issue. And on top of that, it beats selling it for $70k to a wholesaler.

Hi! Someone who wholesales here. I cover mainly Houston, TX but do deals virtually all over the nation. If you want to "employ" a wholesaler first you're going to want to look for off market deals. Yes, some wholesalers find properties on the MLS and assign them, it's very possible. In current market conditions though, where someone can list at $200,000 and get several offers at $220,000, it'd make no sense for a seller to sell at a discount to a wholesaler. If you're looking at financing through a bank then you're much better off just finding the deals yourself or with an agent.

If you're going to go into off market properties and use Hard/Private Money to finance the deal then that's a different story. You could do a couple things, like pay for their marketing expenses in return for them exclusively assigning their contracts to you. Or you could offer an advanced payment, that you'd deduct from any future assignment fees. When I first started, a guy offered to pay me $3k/mo so that I could focus on finding off market deals to assign to him. We ended up not proceeding due to things he had going on, but it was a lucrative offer for me at the time. Either way, you want to make sure you know the person you're getting into bed with. You don't want to pay someone $2k or $3k then they disappear, don't produce, or don't give you first pick of their contracts. 

Hope that helps.