All Forum Posts by: Joe Gonzalez

Whats going on Jesse,

Realtors are very by the book since most of their transactions are always the same, this is the time to educate him on a few things. For starters your original purchase and sale contract can be any template, as long as you delivered earnest money and opened title you have equitable interest in the property. When you are assigning your interest to the realtor you must use an assignment agreement, you purposely don't use a TREC 1-4 family contract since that is a purchase and sale agreement and you do not own the actual asset.

Best of luck. 

Whats going on La'Terrius,

If both you and the seller agreed to the price change then you do not have to draft up a new contract, you can simply just sign off on an amendment that states the changes.

Whats going on Mardochee,

Every list has a marketing channel that provides the most efficiency, for a list like that Direct mail or SMS would be a better play. When I first started I focused on cold calling lists with high distress (pre foreclosures) and after a month I locked up a $30,000 deal. My best advice is to focus on high distress if you are personally the one calling.

Whats goin on Sandra,

I've dealt with every type of buyer you can imagine and here is my advice.

Wholesaling is all about efficiency.

I am currently locking up 8-10 deals a month and some properties are in different cities. Keep in mind there is no way I would be able to scale my business if I was meeting face to face with every seller. My job is to vet a seller over the phone and determine whether he/she fits my criteria - ask for details about condition of home, time frame to sell, why they are wanting to sell, and finally price. Your job is to secure an agreement - then and only then do you go by in person and assess the property ( I don't even do that, I let my buyers go out there for me)

There are many ways to run your wholesaling business, this is the model that works for me.

Best of luck.

Whats going on Shawn,

The reason why it is uncommon for someone to purchase using a conventional loan is because 9x out of 10 the seller wants a faster than average closing date. Another reason is we are mostly dealing with properties that need a rehab and these banks are not the kind to fund deals with higher risk. 

Whats going on Lucas,

Here is a simplified version of the process:

1. Get a good deal under contract with seller (know your numbers, if not you're wasting everyones time)
2. Market your interest in this deal to the cash buyers you have
3. Get the property assigned to a cash buyer, send new agreement to title and always collect an earnest money fee
4. Close on the property (the title company distributes funds so they should be instructed how you want payment) 

Hope that helps. 

Whats going on Paola,

The payment structure varies, it will always be different depending on who you talk to. I've heard of anywhere from 8%-20%, some with base pay and some without. The most common payment structure out there is 10% of all gross revenue you bring in (that closes and funds.) 

Hope that helps. 

@Mark Gabryel One of the best ways is to post the deal on your local investor Facebook groups, make sure the wording is that you're offering your 'equitable interest' and not the house itself to avoid any violations.

Whats going on Deshawn,

When first starting out I would recommend playing offense, in other words taking a more proactive marketing approach. Cold calling will be the cheapest form of entry since all you need is a skip traced list, a dialer and a lot of motivation. 

I made $30,000 when I first started by cold calling a pre foreclosure list. (list $100, skip tracing  $30)

I then started learning and investing my earnings into other marketing channels.

Best of luck 

Hey @Elizabeth Beard, 

It seems as though this deal can turn sour real quick - let me explain.

Let's assume that you happen to convince the guy that it is in his best interest to go through with the purchase of a new house, 6 months later he is miserable and files a complaint with your realtor board. There can easily be a case that you did not honor your fiduciary responsibility since you had self interest in him moving out of the original house. My best advice is to always delegate your realtor duties to someone else when wearing the investor hat. This way if you have to enforce specific performance on the sale of the first transaction you would be able to do so without any counter claims of an agency violation.