All Forum Posts by: Brandon Krieg

@Morenike Arraheem - I would recommend you are VERY clear with the other wholesaler about what you are intending to do, and approach it more like a joint venture.  As a buyer, if I receive the same deal from two people, I am immediately suspicious.

So, everyone should be on the same page.  Never try to 'sneak one by' someone.

@Jacob Rzewnicki - Great job, and keep at it!

First, you ARE making progress by gathering capital.  Real estate investing is MUCH easier when you have a bit of cash to work with, and you are smart by being frugal and gathering money.  So don't get down on yourself.

Wholesaling can be a great way to get going, but you need to learn a LOT and work hard.  I was super broke when I started, and got going by cold calling ads off of Craigslist.  It took me 8 months of that (including plenty of house visits and offers) to get a property under contract (which had a bad foundation I didn't know about), and another 3-4 months to get my true 'first deal.'  You can do it.

As for contracts, you should use a small bit of the money you are saving and have an attorney review them.  It shouldn't be bad.  But I do not recommend just using a free form you grab off the internet.  It is worth spending a little money on.

Post questions here as you go... people are willing to help!

@Vin O. - I think the market is not the most relevant factor.  After all, if you wholesale a deal to a flipper, it has to work in both respects!

I think the key (in both cases) is to be REALLY solid with your numbers.  If you intend to flip, and you think the local market may be trending downward, you should factor that into your numbers (and try to shorten your rehab timeline as much as possible).

I would never recommend 'getting out faster' just to shove a problem onto the next investor.  Not that you were suggesting that!  But that is wrong, and not a good way to build a sustained business or solid relationships.

Both can be a great way to go in any market.  It just depends on your goals!

@Jibril Walker - Welcome!  Kids can be incredibly powerful in driving us to grow!  I have two of my own, and I know they make me a better person and businessman.

I would recommend searching people out on this forum, and making connections.  In addition to looking at the wholesaling-specific forum, take a close look at the other folks in Toledo that are on BiggerPockets.  Also, look for local in-person investor groups.  Once you start looking, people are available to help!

Whenever you have a question, post it on here.  We have some very helpful posters that are willing to lend a hand.  Good luck, and keep grinding!

@Alena Howard - If I were you, I would keep it short and sweet. If they are regular buyers, they have gotten these calls before, so they won't be surprised.

Simply ask them if they are actively buying properties, what their buying criteria are, and if they would like to hear from you if you find a property that meets their criteria.  The people on the other end of the phone are just people.  No magic needed!

Also, I liked @Shera Gregory's points, but disagree with one.  The 'big' buyers can often be some of your best clients.  If they are doing a lot of volume, they might be your top purchasers in a short time.  Don't ignore them!

Just lending my support for @David Acosta's answer.  To answer your question, you lose it when 

A) You back out of deal for a reason OTHER than one specified in your contract 

or

B) You back out of a deal for reason specified in your contract, but not within the time laid out in the contract.

As always, talking to an attorney is a good bet for contract specfics!

@Michel Lautensack - There is no problem at all with having them notarized, and it could potentially save some headache down the road.

However, if everyone is on board with the agreement, and wants it to go through, you likely don't need it.  AS ALWAYS, check with your local and state laws, and ask an attorney.  I have rarely used notarized contracts (although I have depending on the situation).

Hi @Taylor Dove - There were several good responses to this in a recent thread.  It covered more info than your question, but also had several relevant answers for you:

https://www.biggerpockets.com/forums/93/topics/667557-wholesailing-first-deal?highlight_post=3952471&page=1#p3952471

Good luck!

Excellent points @Charles Kao - good to see you here in the digital world as well!

@Shanai Rogers - This is easier after you have an established reputation, or have worked with someone before.  However, if you want to go this route, and don't have the same level of trust, you can always set up a small escrow account with an independent third party (such as an attorney).  If the deal goes through, the cash gets released to you.  If it doesn't, it goes back to the end buyer.

This can be a good way to use this method if you haven't established a trusting relationship with the end buyer yet.