All Forum Posts by: Jared DeValk

In order:

1/7

1/20

1/4

My ratios are slightly skewed because I can spin a wholesale deal into a listing and still get paid from it.

Every business needs to watch the "Numbers". I'm not talking about the Profit and Loss statement (although very important), I'm talking about your Closing Ratios. Wholesalers, please comment with your ratios for the following areas:

-How many leads will get you one appointment?

-How many appointments will get you one contract signed?

-How many contracts will get you a closed deal (meaning you successfully sold the property)?

As a business person, these ratios help you to:

A) Build a predictable business.

B) Plan your finances.

C) Determine which marketing methods are effective.

D) Determine if what you're saying to the sellers are effective.

Be honest! No "fishing stories" or embellishing. Examples of ratios are; 1 out 5, 20% or 1/5.

Thanks BP!

@Richard C., it's obvious that you do not want to have or you are incapable of having a constructive debate on this topic. Which ever the case may be, I'm done responding to your sarcasm and blatant ignorance on the topic, I have wholesale deals to work on. ;)

From 1961-2010 the term "Mental Retardation" was a medical term. In 2010 it was replaced with "Intellectual Disability" which will be replaced by something else due to some complaints from liberals. To your point, "Intellectual Disability" is the correct term and it probably better describes the level of incompetence that I deal with when working with other Realtors.

I have done one wholesale deal and it closed 15 days after signing the contract. In 1 year of wholesaling, I made close to 50 offers and only one was accepted, you can figure out if that one closed or not. I only make offers that will close. That being said, the situation that you described does not happen when the wholesaler can negotiate the RIGHT price. Everything can be sold quickly if you can control two things; marketing and price.

@Richard C., how are you taking advantage of the less sophisticated? In most cases, people need to sell quick and listing with a Realtor is not a quick way to sell. You have the listing process, showings, inspections, financing and a number of issues that can cause the process to take 2-3 months. With a wholesale deal, you can normally wrap it up in 30 days with a cash buyer. They are paying a premium for quick cash and for the connections that a wholesaler has. Regardless, my wholesale "premium" is close to what an agent would charge to sell it. Also, when I make an offer on a house I: #1, make them aware that I have other partners; #2, show them the process that I use for coming to my evaluation. The seller understands how and why I came to my evaluation and they accept the situation as it is.

I'm not going to screw anyone, but then again, I'm not in this business to make struggling homeowners wealthy. They have a problem and I'm offering a solution.

As for the believer part, well, I'd prefer that you not make any remarks like that and try to respect those of us on here that do believe in God.

I only said that some have some form of mental retardation. I can say that because I'm an agent that works with those that should not be allowed to consult with people on a purchase that would affect them for a major portion of their life. That being said, I think there are some great agents out there. My buddy here in Nashville made $400K as an agent in 2013 and he works 4 days a week and sometimes only 4-5 hours on those days. He's extremely bright when it comes to investing.

Also @Richard C., I'm not sure of the laws when it pertains to auto wholesaling, but I know you can do that when it comes to real estate. I had a client do a wholesale deal when I was an agent. He started a new construction build here in TN. 2 months into it, his company relocated him and he needed to get out of the contract. He sold the contract to another buyer for $100K more.

Regardless, I think you should be a little less condescending and rude to people on here. We're all in this together. Also, it's ironic that you mention being a believer right after dropping a "GD". You pretty much lost all credibility from my point-of-view at that point.

To go along with what @Wayne Brooks said about commission, when you sign a listing agreement, it is between the seller and the listing agent (let's say 6% for this example). The Listing Agent (LA) then negotiates with Buyer's Agent (BA) for the buying agent's compensation. You can make the MLS listing part of the contract, but the BA's compensation is not the responsibility of the seller.

The problem is that an RE Agent (which you can assume that most have some form of mental retardation) is going to look at wholesaling as engaging in real estate agent activities when you are not licensed as one. Also, they want to make sure that you will compensate them for their expertise in bringing you the cash buyers. We don't work for free.

Most managing brokers will not allow a RE agent to wholesale for the simple fact that you have all the benefits of being licensed and the managing broker does not get a piece of the transaction (some managing broker's get upto 50% of their agents' transactions). This is due to the fact that you are selling your interests and not someone else's interest in the property.

Although, if the seller is smart and you make considerably more that what a "reasonable" commission would be and that is not disclosed to the seller, he could have grounds to sue you or make the contract voidable. It's the fact that you are in using your position to have an unfair advantage.

In my professional opinion (I'm not an attorney, I'm just telling you what I will continue to do), as long as you're not making unreasonable spreads on your wholesale deals as an agent, you should be alright (unreasonable would be to get a $10,000 assignment fee/profit on a $30,000 wholesale deal).

I have a reciprocal relationship with a wholesaler where I will help in analyzing deals and providing comps if he will send some deals that need to be listed. It works well for us. The point us, no matter how dumb or ignorant Realtors are as a whole, we've been burned by wholesalers too many times and you need to figure out how to compensate an agent for their time, expenses and expertise.

As far as taking advantage, what do you mean? They obviously are not operating in his best interest unless his best interest is to hide something from you, the buyer. In that case, I would contact the agents' managing broker. If they are the managing broker, report them to the Louisiana RE Commission or their association of Realtors. On top of contacting the appropriate authorities, I would not make an offer on the property until you get all of your questions answered, but it sounds like you already knew that.

Have you considered Hard Money?

Here is the link to a US list of Hard Money Lenders by State:

http://www.biggerpockets.com/hardmoneylenders