All Forum Posts by: Account Closed

Hi Josh:

The numbers do look good on this one but if a sandwich worries you and if Brian is right about the magistrates in NC then I would do it as a wholesale lease option and take the up front money and move on.
Best,
Joe

George I like your style and it looks like you have success written all over you. I am a mentor/coach but I can't give you any more info than that on this post. If you want to chat look me up.
Best,
Joe

Hey Laurence you just got some great advice from Steven & Michael. Get yourself a mentor and your learning curve will shrink and you'll avoid the mine fields.

Ryan there is no better way to get going in this or any other business than by working with a mentor. It will cut you learning curve way down and get you going while everyone else is still reading and hoping.
Good luck,
Joe

Andrew you need to keep it simple. The formula is simple when it comes to wholesaling ugly houses and as far as I know was originally put out there by the grand daddy of all the gurus Ron Legrand. ARVX.70-repairs=MAO. Although I have been specializing in lease options for the last 20yrs I always use the formula when a wholesale deal comes around and it has always worked for me. Don't try and out think the numbers or I can promise you you'll get your first lesson in what not to do in wholesaling.

I've been doing lease options for 2 decades now and mentor in the subject and I have to tell you Ben that there is good profit in wholesaling lease options with very little risk if done right. At 3% to 5% assignment fee you can make a nice little living doing a few per month. As long as you deal with pretty houses in nice areas at 100K and up. The beauty of wholesaing lease options is you can work with properties with equity, little, no or negative equity and you can do them anywhere in the country (except Texas) as long as you have a phone and access to the internet. I do it all the time.

Ben the number one reason a seller will do a lease option is for debt relief. They bought another house and can't get the old one sold or they got transferred and have to get out of Dodge today or some other reason that they need the relief. They need to get out from under the mortgage payments ASAP.

The seller moves out of the property and you as the tenant/buyer have a lease agreement that allows you to sublease the property. You then put a tenant/buyer in the property and collect an option consideration (sandwich lease) or you can assign your agreement with the seller to the tenant/buyer and collect an assignment fee and move on to another deal.

You don't need any cash because the tenant/buyer that you put in the house pays the rent.

Hey Devan:

Your question was can you wholesale properties with no money. And the answer is no. You're going to need at least $10.00. I've never taken a property under agreement for more than $10.00 earnest money. So you need a house under contract and you also need a buyers list but if you have not built one of those yet here's how you can proceed.

If you have the property under contract you can then contact all the I Buy Houses guys in your area. They already have cash buyers in place. Offer to co-wholesale the deal and they will find the buyer and split the profits with you.

I don't know your level of expertise but that's how you can get off to a quick start. Half of something is better than nothing.

Hey Doryal:

I've never put more than $10.00 down for any deal in any state so don't get talked into putting all kinds of money down. If you're working with a motivated seller it should ne no problem.

I've been doing lease options since 1994 and mentor people regarding lease options and have read a lot of her stuff and she is very competent. You don't need a license.
Best,
Joe