All Forum Posts by: Jake K.

@Jake K. please don't believe the hype that wholesaling is the best option if you are short on funds. You need money to wholesale!! You need money for marketing, you need it for an EMD.

Yes it is possible to complete a wholesale deal with no money out of pocket, but that's also like seeing someone win a million dollar lottery and then conclude that you can do it too, let alone build a business that way. Those success stories are few & far between and they "normally" don't do it as quickly as portrayed.

This is not to discourage you, but to give you a dose of reality. You might need money just to attend the REI meeting, just depends on which ones in the area you attend. I you have no funds, then you will have to learn to be social. You will need to do things such as: call rentals to see if the owner wants to sell, call FSBOs on craigslist everyday/night, attend open houses, let everyone know that you "buy houses",...etc.

If you are not very social, that is one trait you will have to get rid of,....I did!

Continue to learn, network, & most importantly work on your personal financial situation. If you lack funds, but have some time, Uber & Lyft is a side gig. I know several wholesalers in the metro area that drive to fund their business.

@Jake K.,

Do what you can to make both sides feel equal and talk with your partner about what he feels is equal as well. If one side feels taken-advantage-of, this will cause issues later down the road. You want to create long lasting relationships and partnerships for the future...you two may end up making millions together in the future!

@Jake K.,

If one person found the deal, the usually get a bigger piece of the pie or will cover less financing than the person who did not find the deal. They can invest a larger piece of the up-front costs, then you can split the profits 50/50 in the end. (If it is a flip)

You two are your own businesses, so as long as everybody feels that the split is fair and equal, then there is no problem!

I hope this helped.

Happy Holidays!

@Jake K. we did make cash offers, close in 30, no inspection, no restrictions (& continue to pay cash for properties as we like to be free & clear). Then we hold the 'paper' for investors as a contract for deed or lease to own. The investors then rehab at their expense & pay all taxes, insurance etc into escrow. We often get the properties back when they move on because they have a run of bad tenants, divorce, move away or get in over their heads on other properties. Recently we got another back after 6 years of pmts (we paid $19,500 flipped for $32k ) that an investor had spent $17,000 to upgrade windows, doors flooring, roof repairs only to divorce & then hand back the keys. It was vacant a month & we were offered $42k by another investor & now hold the note @ 12%. The new investor has since completely rehabbed the property AGAIN.

Another investor who 'bought' about 6 of our properties not only walked away (after 4 years of payments) from a property we got at auction for $20,000 (flipped for $32k) but found us a buyer for $50,000 ($5k down) ??? But after 4 years that one cost us $12k when the water/sewer lines needed replacing after that investor was incarcerated (ex-marine PTSD). We then flipped it to another investor for $42k @ 12% because the kitchens & baths has been gutted. We now have an insurance carrier that covers water & sewer line failures on all those we hold title to.

We have some properties that we have 'sold & hold' 5-6 times.

If you are new to the construction trade then a partner is not a bad idea. If i can be of any help just let me know  !

JV deals are a great way to learn about real estate investing....helps to learn the in's and out's and avoid common pitfalls when you are doing things alone.

Hey Jake,

If you have a couple properties that you can acquire, I would work with an investor so you can share the risk/reward of the deals. You will also keep capital for the other opportunities if they come up quickly!

Sounds like you'v got your ball rolling so keep the momentum! 

Best of luck & Happy Holidays!