All Forum Posts by: Jake K.

Clever Investor is solid info. There are a lot of BS programs out there but I really like the Cody Sperber videos. I’d like to get into wholesaling as well. Keep me updated on how you make offers and what the responses are like.

Hey guys. i’m looking to get started in wholesaling Real Estate here probably at the beginning of 2018. I’m in the northern part of Iowa. I’ve read some books, watched many videos. Even bought Clever Investors class on wholesaling. just was looking for some advice or anything really to help me get started out. Anything is helpful. thanks in advance!

You might consider owner financing.  There are owners out there who would love to get rid of their property and allow you to pay it off over time.  Maybe look for "for sale by owner".  Then, you could rent it out or live in it and fix it up, while working on your credit.  

Also, on wholesaling... I posted this on another thread, but definitely make friends with investors.  Investors are willing to train newbies how to wholesale properly because there aren't enough strong wholesalers out there.

Yes @Jake K., I agree - go and listen at the REIA. And, you might be surprised how much more social you feel when you're in a room full of people who share your passion.

Welcome Jake. I'm also a noobie from Baltimore, but my new member introduction was blocked (yeah, I'm working on it). I'd highly recommend checking out the bigger pockets podcasts. There are many great shows on there, but my favorites so far are #197 and #222. Check them out, take notes, and figure out a way to put the advice of experienced members into action. Create a checklist of actionable items. Create a timeline. Aggressively work to check off your list within your timeline, and before you know it you'll be on your way! Best of luck, bud.

@Jake K. Welcome to BP. Don't be afraid about going to REIAs because you are not a social person. Go listen and absorb. You will often run into people who post here on BP. One group I like, the Anne Arundle REI meetup, run by members here @Gabriel G. and @Matt Schelberg has a lot of people who show up from BP. If you ever see me at a local event be sure and say Hi.

Originally posted by @Jake K.:

Originally posted by @Jason D. Lewis:

@jake k. 

There is still a charge on the house and if it goes to forclosure, it rests on you. Avoid hard money or private (all the same to me” unless you have a true exit strategy. IMO that strategy shouldn’t last longer that one year and you best be sure you can handle to load. 

Definitely makes sense, its a higher risk form of funding forsure, but seems like a good option for someone who doesnt want to rely on their own credit and does have an exit strat

A lender is going to look at the quality of the deal and how much skin YOU put in the game. It really doesn't matter if you can find private funds (friends, family, etc) or a HML. Your post bothers me in the respect that you don't have an exit strategy. I ask my borrowers how they intend to pay off the loan. The last thing a lender wants to do is foreclose no matter if they are conventional, private, or HM lenders. Typically I write my loans for one year and they are to flippers.

@Jake.K

I pride myself on honesty and transparency.  So my sellers are well aware of how i plan to make money on the deal.  I have never done a double close, and currently don't plan to. I simply just explain to them that after we negotiate a price for their house, that either I or someone i work with will close on their home in the time frame i laid out in my contract.  And that I make money either when i close on the property and use it as a rental, or when i find a buyer to assign it to, and they know i mark the price up when i show it to a potential investor.  I have found that as long as they know someone is buying their home for what they need.  They don't really care what i make on top of that. 

As far as the legalities of wholesaling.  I make it a point not to put anything under contract that I myself will not close on in the event i don't find a buyer.  This has several benefits.  It keeps me honest about selecting good deals.  It usually means my deals get assigned quickly because everyone wants a good deal.  It protects me from a legal standpoint, because i always have intent to close.  When i get a property under contract I immediately contact my bank to see about obtaining financing in the event i need to close on it. And it gives my buyers peace of mind that once we have a contract in place, their house is sold.

@jake k. 

There is still a charge on the house and if it goes to forclosure, it rests on you. Avoid hard money or private (all the same to me” unless you have a true exit strategy. IMO that strategy shouldn’t last longer that one year and you best be sure you can handle to load. 

Originally posted by @Jake K.:

Hi,

I was curious what the process is, and what possible pitfalls there are for someone, particularly a beginner, to obtain hard money for a flip? ty!

The "hard" nomenclature is not to imply it's hard to obtain, but rather, think: hard to pay off! 

ie. You'd better get your sums right, to make sure that the deal you're buying is a real "deal"!

ie. Otherwise, the interest rate / points can eat you alive!

For example: Do you fancy your credit being ruined, if/when you default?

And/or: Do you fancy your HML foreclosing on the property you bought?

And please, if they advertise themselves as "private lenders" - don't believe them! My 2c...