All Forum Posts by: Jack Wiggins

Great advice and information again! Thanks for all your help and if there's anything I can help you with in the future please don't hesitate to get in touch

@Bill Gulley thanks for the great advice and help again! Two very quick last questions...

1) By deposit / fee above I meant that I've sent members of BP post around on forums and say on podcasts about a small deposit / fee you have to pay (as a wholesaler) to the seller. Is this correct? I've also seen that it is refundable...

2) Would you recommend becoming an estate agent to learn the location you're in? I was thinking this could help me determine the realistic property values, ARV and repair costs, etc.

@Bill Gulley Thanks Bill for your reply. I have been reading about wholesaling on BP and noticed that what you said about finding out what the investor wants before putting a property under contract is key! Like your shoe store comparison as puts it into perspective. 

I haven't yet looked into the laws in England for wholesaling, but it's always fairly similar to the US. 

One question, is finding a competent lawyer / attorney the first thing you should do to make sure your contract is water tight? The last thing I want to do is open myself to tonnes of potential lawsuits or penalties. 

Please don't think I'm trying to say I want a quick and easy 'get out of jail free card' if I can't sell the property contract because to start with I wouldn't of created the property contract in the first place if I didn't have or know investors who would be interested. Also, it would ruin my reputation if I constantly backed out of contracts because I had some special line which meant I could if it didn't sell.

@Russell Brazil I think I've got my head around this now. Is this how wholesaling works (obviously I will keep it very general):

1) The wholesaler finds a property that would be a great deal for an investor. They do this through their own marketing funnels to find these motivated sellers or properties in need of repair.

2) The wholesaler then draws up a contract and then puts that property under thus contract, in effect taking the property off the market (like you said).

3) The wholesaler then has to sell that contract to an OFF MARKET investor.

4) The wholesaler follows through until the close and takes home a commission.

Is there anything I've missed out here? I know I've generalised the whole process, but don't want to sit here for hours telling you stuff you already know.

Thanks for the reply @Russell Brazil .. When assigning the contract (and thus taking the property off the market), is there a fee you have to pay to the seller in order to give them 'piece of mind'?

Hi everyone,

I've had a couple of great ideas for potential wholesaling business strategies. I understand the basics, especially now I've watched all the wholesaling podcasts and read TONNES on Bigger Pockets about it. Not only that, but I've already sorted contacts to quite a few local property investors who buy property regularly.

Question 1:

When setting up a wholesaling business, are you competing (in effect) with local real estate agents?

Question 2:

When looking for these properties BMV, from motivated sellers or run down properties in need of repair, do you have to get to the sellers property under contract BEFORE the real estate agent or can you still put the property under contract if the seller has already listed it with a local estate agents.

These questions may seem stupid to some, but I've been trying to get my head around it for a few hours. Instead of wasting time trying to figure out something I've never done before, I thought it would be more beneficial to ask experienced wholesalers.

Really appreciate any help and thank you in advance!!

@John D. @Josh Calcanis thanks both of you for the insights!

@Josh Calcanis Thanks again for the great help! If you ever look to invest in property in England feel free to get in touch, I could assist you with knowledge of locations, etc. Unlikely you will, but just putting the offer out there haha :)

@John D. Of course, I completely agree. Just out of curiosity, have you got any advice for seeking finance for projects at the age of 20? I have got some really good advice from posts above in regards to finding private lenders due to my employment / income history being so short.

@Josh Calcanis @Jeff Lezark @Crystal H. thanks for the great advice and comments you guys! I will look more into private lenders and investors. Luckily, my Dad owns his own construction company so I've always got that option of a joint venture.

Below I've just included my logic about my strategy (mentioned in the first comment), would be great to see if you guys thought I was heading the right direction.

Process for this example deal I was looking at: http://www.rightmove.co.uk/property-for-sale/prope...

1) Buy properties at auction, 2) Add value through converting into either a 7-8 bed House of Multiple Occupants, e.g. students, young professionals etc, OR three separate self contained apartments, 3) hold each apartment for rental income.

This place is right next to an overground tram station connecting tenants to the whole city, surrounded by 12 bus stops, bars, restaurants, 8 schools within 1 mile of the property, 10 minutes to one of the main city hospitals and a VERY strong rental demand. Many new developments happening in the city itself (capital appreciation potential?).

This provides good options for a plan A, plan B or plan C. For example, if renting to students didn't work out as well as I hoped, I could rent to trainee nurses at the local hospital, etc.