All Forum Posts by: John Ching

Hi Trent and welcome. I'm an investor in the SW part of MO (Springfield). You seem to have a great game plan, but let me share my point of view.

While building capital, look for properties that you can control with owner-financing. Find landlords who are sick and tired of being landlords and want out of the RE business. Come up with some creative methods of paying the seller every month with part of the rents collected.

This way, you can start building your portfolio without having to come up with the cash all at once. 

Hi folks. I have not wholesaled any deals from the MLS, but this has been my experience.

Listing agents typically don't like 'selling' to wholesalers because they are not 'buying' the home. Wholesalers are merely finding a buyer (which is what an agent should be doing anyhow). So many issues can go wrong, that the deal can end up being a huge waste of time.

But, if you have done your work as a wholesaler and have a good buyers list, you can (and should) utilize the MLS and RE agents as a source of leads. The key is getting an agent to work with you.

Typically, agents may ask you to provide Proof of Funds or lender pre-approval when submitting your offer. This is one way they negate submitting offers from wholesalers.

As a wholesaler, you will have to work out an arrangement with your agent if they provided the lead. Typically it would be a, 'bird-dog' or referral fee. This can be tricky in some states, depending on the laws, since the agent providing the lead may or may not be allowed to accept a non-agency fee. But expect to pay the agent something out-of-pocket.

Again, just my experience, your money may vary.

Thanks for the tip, Sam. Feel free to reach out or connect if you have any questions about a deal or scenario. I have 14 years experience in mortgage lending as well as doing wholesales and flips. 

Hi Eric,

If you are cash-strapped (and who isn't?!), the idea would be to wholesale to build reserves and look for owner-financing deals/motivated sellers. Look to control the property with creative financing/means is your best bet if you are short on capital.

Even landlords get tired of the landlording business. Those (income properties) are a good way to find deals because giving up monthly cash-flow is often hard to do! Get creative with structuring those types of deals and create a win-win for you and the seller.

Brodie is good peeps.

Go for it, Sam! Look for some local real estate investing clubs or start your own! Being around like-minded people is a powerful motivator. Working for a high-end contractor is a big plus when it comes to estimating rehab costs/length of jobs.

I'm in Springfield, which is in the SW corner of the state.

Dylan,

I love the enthusiasm and candor. Without capital to start, my advice would be to get gainful employment in a RE-related industry (can never have too much knowledge, whether it be a title company, mortgage professional, hell, even handyman!).

Your evolution as an investor should look like this: Bird-dog, wholesaler, flipper, landlord, transaction architect. Another way of thinking is this: Wholesale until you have enough capital to flip. Flip until you have enough money to hold. Holding is where you build wealth.

A bird-dog is someone that can find deals for flippers and wholesalers. The beauty is that this does not require any money, just hustle and determination. The paycheck is usually just a referral fee, but you have to start somewhere.

A wholesaler doesn't necessarily need money, but as David B pointed out, you need capital to market. Wholesalers need capital to market (bandit signs, direct mail, postcards, etc.). 

Do you have a buyers list? What about a list of RE agents that might have possible off-market deals? Knowing ARV, estimating repair costs, etc. will make you a good wholesaler.

Your focus should be on learning the business of real estate investing, as all the separate elements really are connected. Good luck.

Undeveloped lots? What is he asking and what are you looking to do with the properties? I'm in Springfield, which is only about 75-90 minutes away from Lake Of The Ozarks.

Corey,

Take the plunge! You can't steal second with your foot on first!

I know it's easier said than done, but that's essentially it. Eliminate your fear that any title company wouldn't want to work with you unless you double-close, that's nonsense. If they refuse that deal, find another title company.

Building a buyers list is a crucial step for every RE Investor. Look for local REI people or better yet, a group of people. Check the threads here on BP for building a buyers list. As you go along, you will pick up people here and there.

Have you checked with your local RE agents? Send them an email asking if they have investor clients or house-flippers that are looking for good deals. Let them know you will pay a referral fee lest they think it will be full-commission.

Like others have said, if the deal is truly good, a buyer will snatch it up.

Good luck.

You do realize you posted on a thread that's 11-years old, right?