All Forum Posts by: John K.

@Thomas Garza

Good wholesalers do exist, in every market. 

I believe the frustration you are experiencing is that you are only seeing those that have nothing better to do than to ask for email addresses. These tend to be the individuals that try to wholesale MLS/Zillow deals, which stand little to no chance of succeeding. The numbers tend to be outrageously wrong, as there are probably a dozen other "wholesalers" in the chain, thus they have to manufacture the ARV, to cover the spread.

The irony here is that a wholesaler that has their network built, has no need to constantly ask for email addresses, if ever. Our buyers are already in line, and we only need one buyer, per property. We have no need for 1000 "buyers", unless of course,  we had a 1000 properties. Therefore, we don't need to blow up social media outlets, for email addresses. 

As far as the 70% rule, not sure why this is a problem. Just because a market is hot, like Dallas, does not automatically mean that every house in the city has kept up with repairs and upgrades to warrant the higher prices that are being achieved by those houses, that have kept up. This sounds like realtor talk, to justify just about every house being priced at 80-90%, regardless of the repairs/upgrades needed. One must ask, where the motivation lies. One outfit gets paid commissions, the other gets paid a fee...hmmm?

@Chris Carter

No. Purchase/Sell agreements, do not need to be notarized. 

@Charles Hunnewell

As @Paul Beets mentioned, it depends on your motivation.

If you want to do some deals to generate some quick income, then wholesaling is a great place to start.

However, if you want to build a scalable wholesale business, doing 100s of transactions per year, you will need systems. These systems will need to be tweaked to deliver large quantities of leads, daily. This business is about finding opportunities, quickly. Unfortunately, we can't just visit the MLS or Zillow, and start buying houses.

To really capitalize on those leads, you need a reliable list of buyers, not just a list of email addresses. You need to understand exactly what your buyers are looking for, individually. You need to be adept at many strategies, not just the typical rental units or flip units. As you grow, you will be contacted by a variety of investors with different strategies, if you want them to become a client, you better know the process of that strategy. This will help you broaden your horizons, and tap into those investors that don't take the traditional roads of investing. 

You need to identify and bring value to an investor, beyond simply a great deal. The more valuable you appear to them, the more business and referrals they bring. This can especially be true, if you can be creative and structure financing or even favorable cash positions into the deals. 

Whether you want to do a dozen deals a year, or 200, it takes a lot of work. I will say this, it takes substantially more work to do a dozen deals, than it does 200. If you're only doing a dozen deals, you don't need a sophisticated system in place, simply drive some streets weekly, and you will have plenty of opportunities. You will most likely being doing the all the leg work, manually. This means a lot of spent hours, looking up information. However, when you have automated systems in place, all the leg work is done for you. You just have to figure out what method of contacting the owners, works for you.

@Andrew White

It needs to find its way to title.

You did get it signed by the buyer, correct?

@Lafayette Harris, Jr.

LE = low/little equity

@Freddy Pettiford

You're welcome. I am sorry to hear that this one didn't work out for you.

Just keep pushing forward, there are plenty of these deals out there. As you get more comfortable, they get much easier. 

Since the original topic was the validity of sub 2, i chose to keep my answers inline with the topic of discussion. 

A short sale is just as bad to FICO, as a foreclosure is. Where as, a properly executed sub 2, is actually helpful to the seller. This is because the payments will be made on time, every time. Thus, helping that seller overcome the late payments that got them into the foreclosure bubble, in the first place. 

That is not a solution to protecting the FICO. A short sale and foreclosure are both detrimental to the FICO, where as a properly executed sub 2 will protect the total demolishing of a FICO, and actually help the seller re-establish good credit. 

@Jon Mason

1. Yes, you can offer them anything you want. Just work the numbers backwards, to come up with the payment you desire.

2. This also allows them to NOT pay fees associated with selling a property, the conventional way. When you add in all the fees, it's quite expensive to actually sell a home. 

3. Owner financing can work on homes that need repairs, presuming you have the funds to repair it. If this is the case, it's always better to use this, as the money paid to the seller should always be cheaper than borrowed money from institutions. 

If they are not CASH motivated, this is a great option for them. 

 Well, of course you can keep dropping the price, and it will sell. 

Now if we could only get the bank to agree to that logic, if more is owed on the house than the offer made.