All Forum Posts by: Account Closed

Everyone wants to Wholesale but not many want to put in the work needed to be successful in this business. Part of that work involves learning your market, learning how to Negotiate, getting familiar with your state's contract law, etc. 

Another thing to take into account is if you're really willing to put in the effort it takes to build a business, for some odd reason people have this false belief that this is easy, then they face a little rejection or a mailer flops and they give up. 

Let me say this: all businesses, no matter the field, are difficult to build, the thing about wholesaling is that you it CAN turn your life around quicker than most other ventures (8-16 months) but you need to be dedicated, seriously. 

So ask yourself, "is this for me?", It's going to be tough, at least at first. Sellers may curse you out, your first mailer may be a dud, finding real buyers may be difficult, people may call you crazy and all of the above but if you educate yourself, focus and cut out the noise you can do this business. 

Educate yourself before you step into this business or end up as another guy/girl blasting out bad deals, getting black mailed and illegally brokering without a license (I'll touch on that in another post). 

Welcome to BiggerPockets, this is an excellent site for real estate (actually the best, hands down).. Unfortunately people who wholesale get bashed a lot on here. 

I could write an entire post on the legalities of wholesaling. Basically if you close before you resell to your end buyer that kills the brokering without a license nonsense they throw around on this site. Get in touch with a transactional lender, JV with your buyers or..Get a license! It's less than $3,000 and it'll give you a lot more information to work with instead of relying on another agent you can become one.

The good part is it's easy to overcome the legal issues, the bad part is 95% of the people on here only talk about those solutions 5% of the time, they like to bully. Best of luck! 

What he said. 

This may sound unorthodox but you want to be doing 4 things: 

1. Speaking with as many sellers as possible. 

2. Studying Sales, real estate law and Negotiation. 

3. Speaking with buyers. You want to constantly be building your buyers list and understanding their Investment strategies, funding process (you don't just need cash buyers), etc. 

4. Building lists. Sometimes when you're starting out you don't have the biggest budget so what you can do is start looking on craigslist and Zillow to build a small list of properties to mail. 

Always be upfront and transparent with sellers.

What you could do (ask an attorney in your state to make sure) is let the seller know that your partner will be closing on the transaction instead and you'll be re-doing the contract with your buyers name on it. 

To legally get paid (unless you're an agent) you'll want to set up a Joint Venture agreement with the buyer where instead of an "assignment fee" you're getting paid a set amount for 'coordinating the transaction on behalf of your interest in the joint venture'. Most traditional lenders won't fund an assignment fee so this may be a way to work against that. 

If the lender doesn't have any seasoning requirements just double close using transactional funding. If they do have seasoning requirements call the lender and explain the transaction, you never know they might let you slide if you actually close then resell instead of just assigning the contract. 

PM for more details, I'll be glad to help. 

Yes and Yes, unless you're in Ohio. I recommend getting a transactional lender on your team and in all contracts put a financing contingency, don't go around like everyone else with the "I buy houses with cash" speil, learn to educate and close the seller and you'll do well.

The key is to be upfront and honest and learning sales. You have to know how to identify the sellers needs and aligning those needs with a unique offer.  

Why are you putting up earnest money if you're only planning to assign the contract? For the seller to ask for an EMD I'm guessing you told them you were buying the property?

You could eliminate all the risk by being upfront with the seller, let the seller know you're planning on finding another buyer by utilizing an option contract, assign the option not a legally binding agreement with no intent to purchase, that actually voids the contract...

A striaght assignment striaght assignment could take 7-10 if you have serious buyers. 

If you put it on the MLS you can get it sold in about 3 weeks, sometimes sooner, it really depends on the market. Sometimes an assignment can take longer than putting it on the MLS and closing then reselling.

Why not do both? You could use a combination of a land contract and option agreement instead of lease options, there are so many strategies that I honestly believe you should learn 2 or 3, that way you're have multiple ways to help sellers. 

As far as listing on the MLS and assigning the contract, I'd rather list all day even if it takes a little longer you'll most likely get a higher offer and despite what's been said on this post it doesn't take that much longer if you hire a top agent to sell it and price it correctly, to each is own. 

Honestly, you want to spend 8-12 months studying the Business before you jump in. 

I'm confused...What exactly would he be "soliciting"?