All Forum Posts by: Kirk Gore

I currently have a house under contract in Hattiesburg, Mississippi (Lamar County) that I'm looking to wholesale. It's a 2101 square foot 3 bed 2 1/2 bath brick ranch built in 1975 in a B neighborhood. 

ARV is between $100-110k. I'm a licensed realtor so I'll be happy to send comps and a CMA to anyone interested. My brokerage just sold a HUD foreclosure a month ago on the same street with the same square footage that appraised for 108k and sold for 90k.

Market rent in the neighborhood is $1000-1100. 

Total rehab costs would be around 15-20k.

I'm asking 56k.

Please PM with any and all questions!

Thanks for the responses guys! 

@Anson Young , at what point do you typically disclose to your buyer that you don't actually own the house that you're selling but just have it under contract? Is it better to bring it up in the very beginning or is it not necessary unless they ask? Have you ever experienced anyone having reservations about buying from you after discovering that you're selling someone else's house?

@Bill S. , I'm confident that I've secured a great deal I just want to make sure that I pitch it the right way. I'm a little nervous about trying to sell a house that I don't own!

I should be getting my first contract back from a seller tomorrow so now it's time to approach some investors! I already have a small list of big players in my city but I'm having problems thinking of a good way to pitch them the deal eloquently.

Many of the investors I know of in my area invest very traditionally and I don't know if they'll be familiar or comfortable with the idea of wholesaling. 

For those of you who have solicited cash buyers successfully, what approach has worked best for you?

@Chad Clinton , sorry to hear about your struggles so far. 

Here's my advice:

1) Decide what kind of real estate investing you want to participate in. There are so many ways to make money in real estate and each of them have countless niches that you can specialize in. I really think that truly achieving long term success begins and ends with finding what you enjoy doing and getting great at it.

2) Find a mentor or someone you trust that is either smarter than you or knows more about the niche that you are interested in and do whatever you can to learn from them.

3) Never stop learning. There is so much content on the forums that you could spend months reading and not scratch the surface. Pick up a few of the business/real estate books recommended on the podcasts and also listen to the podcasts themselves. Having access to the successes and failures of 100+ successful real estate investors is an invaluable resource and the podcasts really have some fantastic content on them.

I hope this helped a little! Good luck.

Thanks @Karen Rittenhouse ! I'll keep looking for attorneys in my area that are comfortable with double closings. And I'll also look into blind closings. I've never heard of those before but they sound useful!

@Carl McKenzie , Yeah I'm a little concerned with the way my current attorney wants to structure the deal just because it puts the seller in direct contact with the cash buyer at closing when I'm the one that's been dealing with her the whole time. While we completely agreed on a sale price, I can still see her getting angry over the fact that I'll be making a profit by assigning her property and that makes me nervous.

Thanks @JPaul Mills !

Do you get your double closings done at a law firm or title company?

So I've found and negotiated a great price on my first prospective wholesale deal. I'm very excited and super nervous to move into the closing process. I printed out a purchase contract and an assignment contract from the BiggerPockets FilePlace and took them to my lawyer today and asked him to look over it and give me his advice. 

I brought up the infamous double closing to him and he said that he absolutely could not do one in his office because he "could not get a title company to write title insurance on the house if it is involved in a double closing." Instead he suggested that I use an assignment contract to assign the contract to the buyer for my entire wholesale fee and then wash my hands of the situation and let the buyer have a traditional close with the seller from there.

For you experienced wholesalers out there who have successfully closed deals, what works best in terms of disclosure and simplicity? Can having the buyer knowing your exact wholesale fee be problematic or is it better to have everything out in the open? Does what my lawyer suggested make sense or should I try to close somewhere else?

Thanks again!

I definitely agree with @Christopher Salazar . Any time the word "contract" is involved in anything related to real estate your best bet is to consult your attorney. Laws definitely vary by state and you always want to make sure that you're protected 100% legally.

It definitely feels great to give back to the site, even if it's in a small way with a membership. I owe my real estate education to the podcast. I've listened to all of them, most of them multiple times, and I can't imagine where I'd be or what I'd be doing without it. Plus I feel like the little "pro" by your name makes you look cool haha ;)

@Morry Eghbal I definitely agree! I've received about 15 calls so far from my first direct mail campaign and while none of the prospects are promising wholesale deals, 3 of them are considering letting me list their property traditionally. I really think a real estate license is just another great tool in your "investor belt" to help people solve their problems and the MLS access definitely give you an advantage over people without it.