All Forum Posts by: Jason Rivera

If the math adds up then yes, he can find an end buyer wherever (BP, local REIA, etc.). Typically the wholesaler will have to account for and arrange the contract so the liens and back taxes will be paid off in the end sale. The home would likely have to be discounted at least the amount of the liens/taxes on top of whatever else they're looking at (or other concessions will have to be made by the seller) or else the additional lien/taxes might make the numbers not work for a good deal. If they reach the point where the number cannot work, hopefully the wholesaler has an escape clause in the contract.

Congrats!

Assuming you've crunched the numbers and the numbers make sense, get a wholesale-worthy contract signed. You have no deal until that contract is signed because a signed contract signifies the property is tied up with you. Once the property is under contract advertise the property to your buyers list. Assign the contract to the end buyer. Depending on your areas RE laws you can do signatures by fax, email, or e-signature (like DocuSign) for faster movement.

Best wishes on your first potential deal!

If we're RSVPing, I'll be there!

That's awesome! I don't think you can find deals anymore in this area like that unless you're buying a fixer-upper. My wife and I bought a house in Spanish Fork on short sale for $115K, and we now have a similar home in our neighborhood listed for $193K. I expect it to sell for around $180ish probably.

Hi everyone,

As background to my question I'm a personal lines insurance agent, and I have clients that inform me they're selling their homes, or the owner has passed away, or they inherited a property, etc., etc.

My questions are these: How can I leverage this information toward investing in Utah? I want to wholesale but I haven't been able to find a deal to stick yet. Do you think it appropriate for me to offer wholesaling or other RE strategies based on the individual's needs? Does anyone else have experience where they get potential leads from their day job and they act on it as an RE investor?

Mahalo in advance for any tips and answers!

One of the killers of investors is the "not enough pie" mentality. There is always a deal to be found and those who don't believe that will likely fail in the real estate investing field. You may have to extend geological boundaries, or accept a bit less commission, or partner up with people to get it done. If you combine determination, time, effort, and a bit of ingenuity, you'll find a way to find a good deal.

That said, I will choose not to partner with other wholesalers who have a "not enough pie" mentality. They might be nice people, but I don't have time to think negatively. Any negativity will eventually eat you up and drag you down. Also each other wholesaler is not competition but a potential partner who has a different array of resources you can use creatively. Sometimes you'll end up getting a bird-dog fee from another wholesaler for a deal you can't get under contract. Sometimes you'll completely pass on a deal to another investor and it's okay. Each person has a different pool of buyers and other contacts you might be able to leverage through them.

Opposite to the "not enough pie" trap is a mindset of abundance. If you look at it in a positive light, wholesaling is about helping another person with a real estate problem. There has got to be someone struggling with something real estate because there are so many people out there waiting for your help. Go get them and good luck!

I ask my buyers what kind of ROI they're looking for and they usually have a set range in mind of deals they're eager to purchase up. So while it depends on the individual (and in whole-hearted real estate investing I believe good investors tailor their work towards the individual buyer and seller), generally my buyers are eager to look at 7%-10% ROI. Everything depends on your market, your buyers' individual needs, and your seller's needs!

If the deal is solid to flip maybe try looking for a hard money lender that'll work with you? Even after the HML takes their fee if you still made more money overall...interest is no biggie, and everyone wins :)

After you're under contract you'll want to do due diligence on the home. Good wholesalers should be able to sell the ROI to other investors after all repairs, fees, fines, etc. are calculated. You shouldn't need an escrow account because you have the policy under contract and you have escape clauses in case the deal shapes up to be a bad one.

Also you should be trying constantly to find buyers to add to your buyers list so you have a quick pool of people to look at the property. Hopefully that helps, and good luck!

Also that gap in title records is a huge gamble, which is why the title insurance company won't touch it. If you were to take part in that property and if the new owner found some title discrepancy it could draw you and whatever other entities handled the property into a lawsuit. I'm a property/casualty insurance agent who is new to investing (still looking for my first deal), but unless a veteran investor can offer a creative solution to your situation I wouldn't touch it.