All Forum Posts by: Account Closed

JV.

Sounds like a great deal. Lock it up and then wholesale it. Use the extra cash for a future flip.

@Amine E. Sounds like it would be a good buy n hold, if it's in a nice area. What is the area like? Is it a bad part of town?

@Amine E. 

 Is the purchase price you quote your wholesale price or your purchase price with the seller? 

Depending on what the investor discount is in your area. In my area deals can go for 75% rather than 70%.  So, in that case your deal would be marginal but workable.

Are you saying that the seller will finance? That's good and you might be able to wholesale it to a retail buyer.. with that owner financing in place. Someone who can't qualify for a mortgage but can make the down payment and the monthly payment.. They might also be willing to accept it as-is, depending on the repairs needed.   Or, you could wholesale it to an investor (non live in) with that financing in place.. either buy n hold or fix n flip. That's a great rate.

What is the avg rent for the area of this property? It might make a good rental.. in which case perhaps repair costs to make it rent ready would be less than your figures. Perhaps it's rent ready now with slight clean up?

Just food for thought on how this deal might work.

@Riley F. I work full time and wholesale part time. I too limit my mailings so the call qty per day/week is not too great. I use a VM system for direct mail response. I use lunch times to call back people. I also call back during early evenings or mid mornings (break). My direct mail VM system will fwd to my cell phone.. So if I am able to I will pick up and answer. Otherwise I will let it roll over to the VM.

@Danny Winters wholesaling is an excellent place to start with respect to real estate investing. I agree with the others about networking and going to REIA's and such. Some of them, like the one in my city, offer training courses in wholesaling, fix n flip, etc. Direct mail is an important part in your marketing, but not the only one. You do need to know where (what areas) and to whom (absentee, high equity, code violations, probate) you will be sending direct mail to. Find out where the buyers are buying at mostly in your city.. Target those areas. Locate those buyers. Find out what their buy points are. If you find buyers first, you can then target specifically the types of deals they need. Yes, it's easy to find buyers.. So why not start there and find out where they buy at and what their buy points are. That will help you know where and what type (price range, etc) of marketing to send. Yes, if you have a good deal it's easy to find a buyer. But if you have a good buyer, you know what a good deal is the him and so you'll have more targeted marketing.

@Naima Lynah stay away from courses that cost you $30K to $40K ! Run from them! Ask me how I know!! Don't go to *seminars* - they're all sales pitches for the bigger price tag items. The price you pay for this training is *often* inversely proportional to the value you receive. 

To both of you - listen to the BP podcasts. They're excellent.. especially the ones on wholesaling. Check out your local REIA.. Find a mentor, if you need one. Perhaps there is a local investor or wholesaler who needs help in his/her business.. Like fielding calls from his mailing, visiting properties, whatever. You can earn as you learn if he pays you out of the deals you help him land. I believe this is how @Jerry Puckett started (hint: listen to his BP podcast).

@Deborah Hill The 70% is a good rule of thumb and if you can lock down deals with that investor discount that's great. But it might need to be adjusted depending on the area or part of the country. For instance, here in Phx it is very competitive. Buyers will generally accept 75% less repairs.. and it is rare to find one at 70% because of the competition! It would be safe to start at 70% and see how it goes.. if you can get any deals. Likewise, it would be good to ask the fix n flip investors in your specific area what their buy criteria is.. 

@Jamane Y. M wholesale fee is built into the calculation of ARV x investor discount (70%, 75% depends on market your in) less repairs less wholesale fee. The result of the calc is my MAO, max allowable offer. So I should have it under contract with the seller for MAO or hopefully less. When I present my property to a buyer, I tell them my ARV based on my comps, give them the comps, provide your repair estimate, present them your Wholesale Price (purchase contract price + your wholesale fee), provide the property details and pics. If the buyer wants the property, you assign it to them. The difference between your purchase contract price and your wholesale price is the "fee" you make. It comes to you at closing..

@Kim Book Hi Kim.. I started off wholesaling 2yrs ago and still wholesale part time. I've wholesaled over a dozen properties thus far and look to improve my game every day.  Personally, I think it's an excellent way to start with respect to real estate investing. A good wholesaler is one who consistently markets for buyer leads, seller leads and can match the two up consistently. He/she has to be good at comping a property, estimating repairs and negotiating with sellers and buyers. To survive, you need persistence, determination, consistency, and be able to find and lock up deals such that the seller wins, your buyer wins and you win. There are many good posts here on BP with respect to wholesaling. There are also some good BP podcasts! The BP podcast with Danny Johnson is a good start!

Thanks @Jon Holdman and @Franklin Romine for you inputs! Much appreciated!

@Larry Turowski Good points! Thanks!