All Forum Posts by: Account Closed

@Account Closed Some might view wholesaling as ethically problematic because the wholesaler doesn't have a duty to anyone but himself and is thus incentivized to make the worst possible deal for both the seller and the buyer in every transaction. However, in practice, the homes wholesalers take on have no other path to sale. The sellers either cannot wait through traditional timelines, their property is of very low value, or the property has major defects that make selling it and earning a 3% commission a money-losing endeavor. Wholesalers overcome these problems for sellers and create value for buyers by offering transactions otherwise unavailable in the marketplace. What are your legal concerns with wholesaling?

What you are proposing is a very risky venture both legally and professionally speaking. If you search these forums you will find countless syndication investors burned by paused redemptions, loss of most or all of their principal, investment promoters disappearing, etc. You are required to be licensed to market these investments to others. You have no experience that would make you a reliable source for these investments and if you lie about your experience to induce an investment that is a crime. 

If you've been offered compensation as a referral partner for RE Private Equity please share the details either here or by sending me a direct message. The arrangement is likely a crime. Investors believe their money is going into their investment account. Not paying fees and commissions when to unlicensed salespeople where none is disclosed. This is quite literally someone's stolen savings. If you know something, please say something. These practices must end. 

Whatever you decide if you commit and work at it 24/7 for 5-10 years or so you'll have massive success! The real estate industry requires much more commitment/ time and effort than many other industries but the rewards can be huge.

Be ready to work and never pass up an opportunity and you'll be good! 

@Kerem Cagin

Most note investors don’t wholesale so we can’t compare one agreement from the next.

My recommendation is to research more about the topics here on BP and ask specific questions.

Note tax liens and notes are more complex than wholesaling

Quick thoughts although I have many:

You have almost all the same contacts people dealings as a residential or commercial broker, so nothing changes much, except size of the deal and perhaps timing.  My thought is wholesaling is quicker, residential a bit longer, commercial typically much longer.  I've always been surprised when people tell me they are quitting becoming a realtor to be a mortgage broker or the other way around.  In many ways, basically same business.  Still need to prospect, still dealing with all the same issues.  Maybe in mortgage business you do less driving and more office work.

I got the impression you have not wholesaled yet, so please tell me how you are a great lead generator?  Finding distressed properties is really not that hard, so while it is a skill set, I don't think it is a unique skill set.  Plenty of lists for example for $30-$40 a month that give you lists of distressed properties...foreclosures, preforeclosures, probates, vacant homes, etc.   Getting the listing is the skill set.

With all these choices you set the hours....You can work M-F 9-5 or you can work all hours of the day or night 24/7 365....while I'm thinking commercial could be a little more office focused and a little more business hours focused.  Tell me if the commercial seller is in Hong Kong, that you won't work a call at 2am in the morning, or if they fly in and want to walk a property in the evening or at night to verify maintenance issues like lighting, tenant type, occupancy, parking, etc that you won't meet them there to do that.

Timeframes...no stats to my thoughts, but I'm thinking wholesale deals, when you get a fish on the hook they wanted to sell 30-300 days ago, if they're motivated enough to sell at a 30-50% discount to market, then they should be super motivated.   Your turn times should be fairly short...30-60 days.  Residential I would extend those out...90-180 days...although many of my buyer and seller clients today have much long lead times.  One seller I just closed I've been talking to for 10 or more years.  I would say pretty common now people call saying they want to sell in 1-2 years and want to know what they need to do to prepare for that.  Buyers often 2-3 years now...waiting for interest rate drops, getting credit in order, saving for down payment, in a long lease, etc.  Commercial I would say 6-8 months and up to 20 years to close a deal.  Think about multifamily where many owners pitch 5-7 year hold times...so meet someone today that you really connect with that just bought...you need to keep in frequent contact with them for the next 5-7 years before you get the listing and earn a commission.   Heard a nice talk from a commercial broker in Austin that took 20 years to close a giant deal there.  Lots of expenses for the past 20 years out of his pocket to do that deal.  Deal of a lifetime there, but that's a long time to wait and have $100K+ probably in expenses and probably a lot more than that, waiting for that lifetime payout when the customer could also call you to say thanks for all your hard work, but Nashville just offered us better incentives, we're going there.   Think about all the brokers chasing that Amazon HDQ2 deal from all over the country, or car plants, or chip plants.

Not sure it is true, but I expect the washout rates for both residential and commercial realtors is just slightly lower than for wholesalers.  Some people used to say, only about 1/2 the people who start working on their license, actually take and pass the exam.  Only maybe 1/2 of those will active their license and hang it with a broker. 90% of those will wash out year 1, 90% of the ones left wash out year 2.

Still market ups and downs with all these groups.  Apt sales in 2023 I'm hearing were down 80%.  So are you willing to give up 80% of your commissions and still go to work, making all the same contacts and maybe expenses go up..waiting for cycle to change?  That's what we do as realtors.

So you have to be super motivated to get in this industry and making a living and survive....wherever you start...wholesaling, residential, investment sales, commercial sales.

 There needs to be someone similar to Always Marco on Youtube with the MLMs where you have someone exposing gurus who sell ******** courses.

If you want to legitimately learn wholesaling, stop wasting money on ******** courses, and pay for such things as hiring an attorney to properly set up contracts, hire people to do inspections and appraisals, and hire CPAs to make sure that your business operates properly. Forget the gurus who act like they know everything without any experience.

People say "oh don't make things more complicated then it is". But when i have the time or money to start what I want to start, I would rather be safe then sorry. If you think like those gurus or think like those gurus, then you can kick rocks pretty much.