All Forum Posts by: Gabe Waldrep

Welcome sir.

I have had to test a few houses while working for a large management company. The only ones that ever tested positive for LBP were built in the late 50s/early 60s and usually framer style houses. You can buy a test kit at Home Depot should you have the need.

Drive neighborhoods and door knock the distressed looking homes, leave flyers or business cards. Contact assisted living admission reps to see if they have clients needing to sell. Network with divorce, bankruptcy, and probate attorneys. 

 Well said sir. If you stick to this philosophy you will do well and sleep well knowing that you are helping people in need. The point is to solve their problem.

@Brandon McCadney I only have an MLS Net Sheet that I use for normal listings. I compare this with a quick verbal or hand-written rundown of a cash sale.

Since I am a real estate agent, I present both sides to the seller and let them choose what is best for their scenario. If I think one direction has more benefit to their bottom line than the other, I be sure they understand that. If you are only wholesaling, then your strategy is one-sided.

@Jay Hinrichs sometimes eliminating commissions and closing costs on a cash sale can make the deal more appealing to a seller. This can easily be a $8000 swing. Not all sellers know the market. Personally as an agent and a wholesaler, I pitch both sides to a seller and let them decide. If I think the benefits of listing the home on the market truly outweigh an off-market sale, then I tell the seller. I try to suggest what is best for them and their situation. Some sellers only trust the agent or wholesaler they are working with and don't want strangers in their home unattended even if that means they are with other agents.

I fully agree that often selling off-market is not the best thing for the seller. But many houses will not pass inspections or qualify for a loan due to condition, and many sellers do not have the cash to make the repairs. 

Also when selling off-market, there is less of a chance that the contract will fall through. Most wholesalers who run their numbers correctly can find an end buyer before their contingencies expire.

Every seller has a unique situation, and it is our job to figure out what works best for them.

@James Hong you are always welcome to contact me. I’m happy to help with anything I can. And depending on where you are looking in Texas I may have some connections or suggestions for property management.

From a wholesalers perspective, you need to emphasize the repairs needed and costs that may come up if a buyer gets a home inspection. Breakdown the realtor fees and closing costs. Let the seller know that with you he doesn't have to pay either of those. So make a net sheet showing his bottomline for each option. Remind him that if he goes to market, he will have to deal with multiple showings, a 30 day escrow, the potential of a buyer backing out after inspections, financing that may fall through, appraisals, etc. Paint a picture that selling to you eliminates much of that headache. You will only have "contractors" coming through during your inspection period. 

Go to local REIA meetings to network with agents and wholesalers. Let them know your interests and have them bring you deals. While you are new, it might be good to make friends with a real estate agent to guide you on analyzing deals because you want to get advice from someone you can trust and someone looking out for your best interest and not just their own. Some wholesalers will help guide you as well, but you have to be careful because they are trying to sell their deals and will shine the light to make them look as good as possible. Especially if they know you are new and inexperienced.

If you do not plan to be an active agent and work with other buyers and sellers, then I don't think the big-box brokerages would benefit you. If you are only using your license to find and sell your own deals, then you should go with a flat-fee or per-transaction fee brokerage. You definitely don't want a commission split nor do you need the systems and training that the larger brokerages offer.

As far as your own purchases, you could start out using a lawyer to review documents and help you understand everything until you have a better grasp on it. It would be good to network and find an experienced agent to help you review and prepare your first few offers and contracts to be sure that you have everything lined out correctly.