All Forum Posts by: Jeff Warner

John,

You probably already bought this course but I saw the post and thought I'd chime in. I bought Scott's course and I thought it was great. I actually got a phone call from Scott himself to tell me that the order was being shipped. Good course, especially for the $.

John,

"the cost of repairs will always vary from one buyer to the next"

That's an excellent point, everyone will have a different approach to how they want to rehab.

"The numbers you disclose on your marketing material should be limited to price, ARV, supporting comparables and a “rough†repair estimate. That’s it. There is absolutely no good reason to assume your buyer’s responsibility in analyzing the deal any further."

That reinforces what I had in mind. I think a lot of people starting out (myself included) assume to many things about what they're buyers expect.

Thanks for the info John, I appreciate it.

Jeff

Wholesaling is not about making huge profits, it's about making consistent profits. In order to have a solid buyers list and lots of repeat buyers lined up and ready to buy your next deal (assuming you've given them good deals) you'll want to leave the bulk of the profit on the table for your buyer. Afterall, the guy doing the rehab is the one who is taking all the risks therefore in my opinion they should be the one making the big money.

On average plan on making 3-5k per deal. That's good money considering you may have a few hours of your time, maybe some title search fee's and earnest money (which should be held in escrow by your title company or closing attorney anyway) into the deal.

That being said, can you make 10, 15k or more? Of course that's possible, just not a regular thing when your Wholesaling properties.

Thanks for the reply Tim. I'll just stick with what I'm doing, which is not guessing but having estimates done. That is a good idea to get an estimating book, I never thought of that.

"What I need to do is to stop being a chicken and just make some calls. :)"

Joseph,

You got it. Fear of rejection holds lots of people back. If your uncomfortable making calls you can always start with FSBO's that may or may not be a deal for you. Not to be an advocate for wasting peoples time but you will be talking Real Estate with a seller and get some practice. Also, if the price is too high just tell them at the end of the call that it won't work for you, that way you don't lead them on.

One thing that helped me was running my own business and doing outside sales. In an outside sales role your forced to get out and hustle, the end result is usually a little bit of success and LOTS of getting the door slammed in your face. Not telling you to go look for a sales job in this market, that would be a waste of time and defer your success as a Real Estate Investor. Instead, you can get out and hustle and interact with as many people as possible. Instead of writing down an address, get out of the car and knock on the door, if nobody is home talk with the neighbors. If you are out and talking with sellers everyday, before you know it you'll be comfortable and it will be second nature.

Joseph,

I'm not in Chicago so I obviously can't refer a specific company.

What I did was called the title company's in my area and told them what I am doing. While none of them we're familiar with a Wholesale transaction, once explained I found one company that was all for it and the rest that thought I was a nut job. I basically just told them that I would be bringing buyers and sellers together and that I would not have any of my own funds (other then earnest $) in the deal.

I know this won't compare to a solid reference but I hope it helps.

Anyone?

I'm sure this topic has been covered before somewhere on this forum so I apologize if I have missed it.

I'm just curious to see how experienced Wholesalers estimate repair costs? I understand that ultimately it would be up to my buyer to have his own inspection done, I would just like some tips on estimating costs to help with negotiating for a better price.

Is this a waste of time or should I have a basic inspection done?

Thanks for clearing that up Will.

Thanks for the reply Will. Just so I understand, as long as my buyer was not using FHA financing then seasoning the title should not be a factor?