All Forum Posts by: Jay Hinrichs

@Engelo Rumora 

  do you know any PM's that deal in that low end properties.?  I know they can be hard to find and hard to keep engaged.

@David Krulac 

 crime and education were one driver of this.. not going to get those good marks in the big metro areas crime is too high... I think New England could be doable but I don't know about ND IO and MN  tad chilly there.

@Jason Farmer 

  it is illegal to give a referral fee to a non licensed agent just FYI ... And of course there are those that rise to the top in any and all professions... And most folks just fly right under the radar do their deals... I would say wholesaling with or without a license is just like RE brokerage side 10% of the people make 80% of the profits on deals.. Not everyone can just read some BP posts and pod cast and just jump out and be a wholesaler.

Same with those that want to sell RE... their are skills involved   Sales skills for sure.. Ability to make an analysis of the asset in real time and quickly.. Having access to funds.. and then Knowing what your doing and working smarter and harder than most... The harder people work usually the luckier they get.

And with the advent of the internet and sites like BP and the Real Estate education sector (guru's)  and Reality TV shows on flipping and foreclosures and everything in between... there are many more being introduced to the industry.. And of course that brings the good with the bad...The RE industry by just its nature of being licensed self regulates it to a certain extent.. but when you get the monthly RE bulliten you will see many Licenses being punished or their licenses revoked for various offenses... So to that extent the industry regulates out the bad apples.. In the wholesaling flipping business nothing to regulate those folks if they are bad they just keep going on being bad unless someone takes them to task with a civil action.. or someone turns them into the DRE like what is happening in some states now. 

@Shaun Reilly 

  good points then why even have a RE industry at all.. ?  whats the purpose. if those that are not licensed have no real overhead no fiduciary no real ethics they are bound to.. Just dollars and sense...

I think we have two distinctive markets at play here the INVESTOR bombed out house market or heavy rehab market and the Nice home being sold to a homeowner that can qualify... those are two vastly different sellers and buyers of course.  Where the buyer in the retail deal is just looking to live somewhere and the buyer in the heavy rehab is doing it for a business and profit... may those do not need representation on either side.. but form my experience average home seller  of nice homes they need help and so do the buyers.

@Patrick Britton 

  Patrick based on your background your a bright guy.. wholesaling is just one very small facet of the RE game and it can be profitable there are many more ways to make good money..

If we take the RE agent that just specializes in selling RE or listing RE depending on their market if your smart willing to spend some marketing money ( like you would yellow letters and other marketing for wholesaling) are driven and are good.. you can make pretty good money.. Top agents in the PDX market make 300 to 500k no problem. And there are quite a few that do that.. Every office has a handful or a few... And of course those that have big teams.. 1 mil a year in commission is not out of the questions for one who really wants to work it.. Now were your at if that is were you live Blaine ( I go through there on my Way to Kamloops an Kelowna to fish ( when I drive I normally fly) but prices may not be that high were you live so it may be harder to hit those numbers..   It would be interesting to see how much wholesalers make in a year... I know in my deals that I fund for my rehabbers there are many times bird dog fee's on the huds and they are 3 to 4k normally... So like a great RE agent I bet there are wholesalers that make 300 to a million or more and there are probably some super wholesalers that move tapes and such that make much more.

It really boils down to how much time and energy you want to put into something and if you want to sell to the public.  My wife who has done this for 20 plus years makes 6 figures in her sleep basically its all referral and far easier than wholesaling I can assure you of that. so you talk about residual income.. and owning rentals.. She just gets a call like tonight she got a referral call they want her to list her home and sell her a new one.. that's probably north of 20k .. with maybe 10 to 20 hours worth of actual time on the file and with the way RE is now.. clients look on their own and call and tell you what homes they want to see you just set up appointments meet them and present and close and right now we are all bless ed with great market so a listing can be just money in the bank..

So my point is many ways to skin a cat in this game

@Adam Paxton 

  one of the best plays it the game it just so happens I bought 4 today... one day before they were going to be lost... homeowner was relieved .. I do all mine with equity splits so we save them give them some money then sell and split equity so they acutally get something my competition just tries to low ball and take them straight away when my guys show up with my program and testimonials we get like I said 3 to 4 each sale and they are great win win s for all.

@Mark Creason 

  can you send me the school off line I need to do my CA this year and I just did my OR so maybe I have some overlap as well... I don't think people realize how valuable these licenses are there does not go a year that I don't send a few referrals down to palm springs from Oregon or Napa valley were I am from .. and when those folks buy I get a nice check and sometimes its pretty significant especially with the sales prices in the bay area. a nd the higher end La Quinta properties. Plus its good when your attracting investors like I do they want to know your credentialed most of the times.

@Patrick Britton 

depends on what you want to do.. do you want to have RE as a career? or do you think wholesaling will be a long term gig for you.. most folks that wholesale last a year or two then migrate.. those that get licensed and treat it as a career do it for years .. Like me 40 years that's all I have done by being licensed I do far more than just flip homes I have learned to lend money ( CA brokers are HML) I learned about tax sales foreclosure sales how to research the ct. house.. Plus along the way got listing that sold in a week and made 15k all legally ... and probably the biggest is just the networking with other RE professionals instead of being on an island.. and of course MLS at your home computer that is invaluable in todays highly competitive market... So if you just want to wholesale you will probably not be doing it in a year or two.. If you want a career then get the license give it a run and see where it takes you it took me all over the world and created a pretty fabulous lifestyle frankly.

@Jon Holdman 

  very nice post and eloquently delivered wish I could do that :)

@Mark Creason 

  wow that's great 11 states you must be a pro at CE  I am broker in 3 states and NMLS so I have 4 CE 's to do ... Many people rent licenses that's a fact... And of course many think brokers are lazy do not do anything and do not bring value.. But to like has been discussed if you want to sell RE without owning it.. Get a license otherwise work on getting your funding source's in place so you can close and flip...  But reality is does not matter the Genie is out of the bottle hell its one of the top subjects on BP and those that do it are proud of it. and those that want to do it are enamored with those that do it..

I guess from my perspective because ( and maybe I missed something) I never flipped a contract I always closed on the deals, but to be fair many of my deals were larger transactions and not these little cheapie houses.. Where I was flipping to a heavy and they would just as soon go around me as not.. and it was not like I could find multiple buyers..And the profits were substantial 6 figures to mid 6 figures.. so we needed to be able to close end of discussion other wise the developer would just go right around us without a worry as to relationships.