All Forum Posts by: Jonathan Greene

If you want an easy CRM just to manage contacts and sync emails and set tasks, log meetings, etc. Hubspot CRM is free and easy to set up and use just to keep investors in. Podio is best used when you have an off-market mailing business going that can be automated into the program. Podio has many features for investors, but until you have an excess of leads and property options, it's probably not necessary.

Your equation starts with the seller, not the buyer. What does he or she want? Not how much, what is he or she going to use the sale to do? Move, deploy into other investments. You need to know the seller's motivation to properly frame a deal for yourself and for a future buyer. There is no wholesale rate, sellers want the most money they can get or they want you to help them solve a problem. If you can't do either or don't know either, there is no deal and no way to be a middle person to a subsequent sale.

Your first issue is trying to wholesale something off the MLS. That won't happen. If it's on the MLS, all of your buyers have the same access as you do so there is no purpose to a middle person in the equation

Your second issue is that to effectively wholesale you need access to funds, whether you eventually deploy them or not. I won't show my off-market properties without a proof of funds. On-market I don't really care because there is a lockbox. Off-market, there are usually occupants involved and you only get a few bites at the apple without screwing up the deal so you only want qualified buyers in there.

First, you need to check your obligations under your state's real estate law for disclosure. If your entire plan to buy involves then listing the properties on-market your brokerage may want a cut or may not enjoy that you are doing that. Many states require your off-market acquisition letters to disclose that you have a real estate license. I don't understand the lure of listing their distressed properties. The entire backbone of the wholesaling industry is built on not listing properties because they are distressed. Wouldn't you make more money buying a distressed property and then wholesaling it? What property owner who is in trouble wants to pay your listing fees? None.

If this is your first potential deal, you do not want to play around with a commercial prospect. You won't be able to do anyone justice trying to figure out commercial wholesaling on the fly. There are way more considerations than with residential and you could cause yourself undue liability by not understanding the ramifications of zoning, business allowances by the town, etc.

Yes @Mark F., the taxes make it really difficult to hold, especially when coupled with multiple bids pushing the prices up way too high for MLS deals. That's why I mail for off-market. They still have the taxes, but they aren't getting 15 bids and going for 100k over asking price. :)

When you have a license you have to check your state's real estate regulations regarding disclosure when you are wholesaling. I am licensed and I also operate an off-market acquisition business, but I have to disclose in my state that I have a RE license. Some brokerages do not like agents wholesaling because they don't get a cut of those deals. These are just some procedural things to look out for.

To start a wholesaling business you need gain access to off-market properties. How do you plan to do that?

This makes no sense. If you can get 95k for it, why can't he? Do you have a verified list of buyers? You can't just take a friend's property with a short contract and think you will sell it off-market with no contacts. Do you know what information you need to present to potential buyers? Just because a friend has a house to sell doesn't mean it's easy to wholesale, even if he said he could get more. 

Look up the value for what? How are you building a list of potential distressed sellers? What experience do you have in real estate and or on-site negotiations? As others have said, the first step to wholesale is figuring out how to get seller leads. But also, if you don't know how to handle the conversations, it will all be wasted.

The more distressed on the open market, the better for you because that means that at least some of them won't be a full disaster. Buffalo weather makes it tough so distressed homes in an area like that often suffer pipe freezes if not winterized properly and some bad companies will fix, but the mold may be behind the wall. If you like the area and the volume of availability, you need to make a trip. The deals won't all be too good to be true and with your skills you can handle a property that may scare others off.