All Forum Posts by: Katlynn Teague

When you have a buyer in place, you would have to sign an assignment agreement, which transfers your rights to purchase the property to the buyer for a fee. You will receive the fee when the transaction closes. Keep control of the transaction by maintaining communication with both the seller and buyer to make sure everything is set for a smooth closing.

Feel free to reach out with any questions.

hey David, so I'm a bit confused about inspecting the property. my questions are:

do we need to get the property inspected? Is that the wholesalers job or the Cash Buyers? At what part in the process do you do this? After you find a cash buyer?

There's no need to do a formal inspection of the property. Some wholesalers like to see it before putting it under contract, but for us, it's not worth sending someone to view the property unless there's a signed contract. We get them under contract based on conditions described by the owner, and then we hire a local photographer to get a video walkthrough and pictures.

We used to fix and flip properties before moving into wholesaling, so by just talking over the phone with a seller, we know how much it would need for repairs and we always prepare for the worst. If we get pics and video back, there would have to be something drastically unexpected for us to renegotiate the price due to an unforeseen bump in the rehab budget.

When you have a few vetted buyers interested, you could schedule a showing for them to verify the condition. Any inspections beyond the first showing would have to be after signing the assignment agreement, with non-refundable earnest money deposited. That's how we work.

Thank you so much!!! I'm still learning everything. I made a guide on every step in the process and right now I'm specifically focusing on: my script, how to comp, how to find ARV, how to calculate/estimate repairs, and also filling out the contracts.

Do you have any recommended videos or something I can use to learn how to find ARV, estimate repairs, and how to comp? I know you said you used to flip houses so you had a rough idea going into this of what the repairs were gonna be. This is the toughest part about wholesaling from what I've read up on so far. So any help would be greatly appreciated! Thanks again!

Not true! Actually, that's the easiest part of wholesaling. What will take you the most time to learn and master is sales and marketing.

Follow and learn from people that are actually doing the business not only teaching it. @Katlynn Teague, @Jerryll Noorden, and @Bryant Brislin are always giving great advice so make sure you follow them.

Best,

David

Thank you so much David!

Jack, feel free to reach out!

2 Votes

Lake, first off congratulations!
On top of reading articles on BP, I highly recommend going to your local REIA meetups. That way you can meet some people face-to-face and maybe have some mentors walk you through their projects.
In regards to where to live, figure out the option that fits you the best. Boston, Seattle, and San Fran are pretty pricy. However, Dallas and Georgia are fantastic markets, I might be biased because I live and work in Atlanta. House Hack your first deal, stay for 2 years , and SAVE! Depending on what you want to do, you have options, tax-deeds, fix-n-flips, another house hack. $20k-$30k is a fantastic start!

If you decide Atlanta is the place you want to be, do not hesitate to reach out, would love to connect!

1 Vote

Quote from @Torianne Baley:

Quote from @Katlynn Teague:

Hey Torianne,
Congrats on finding a buyer! The first step ask for POF and verify they can purchase property, request EMD, and then send over the assignment contract!

Everyone has a different way of working their deals, it's really all about what works best for you and your business. For example, I do not show or send properties to anyone without first seeing a POF(keeps out the tire kickers). Once I have verified the buyer has funds and can purchase the subject property, then I will walk them through it, from there if they decide they want to move forward require EM and a signed contract to lock it up!

Thanks, Katlynn! What's a good general tone/discussion when speaking with buyers to request a POF before seeing any deal details

A calm professional tone.
"Before we start doing business together, how much working capital do you have set aside to invest with? - wait for answer
-Can you please send me an updated POF? "

0 Votes

Quote from @Shenell Caldeira:

Quote from @Katlynn Teague:

Good morning BP,

My boyfriend and I are looking to Househack a creative finance deal as our first property together. We are both full-time real estate agents who work with investors and have been getting lots of deals thrown our way to review. However, we have never done a creative finance deal before. What we are looking for is a SFH with a fully finished basement. We plan to live in the basement and rent out the upstairs of the house.

Has anyone done this? What was your experience? Anything we need to look out for?

Hi Katlynn

You should go to Pace Morbyʻs free FB group called "Creative Real Estate with Pace Morby", there are so much Subto Students all over the country that have done househacking and Iʻm sure there is some that would love to help you.

Thank you so much Shenell!

1 Vote

Investment Info:

Other wholesale investment.

Sale price: $55,000

My first-ever land deal!
This lot was raw land, zoned residential, at 21,700 sqft. My investors are looking to build a 1,600 sqft at $120 per square foot with an exit of $375k. The estimated time frame to complete is 6 months!
Their goal for this build was to create a beautiful modern home that the average home buyer could afford. The investors are looking to start building affordable housing that looks like the 600s-700s homes that everyone sees!

1 Vote

Hey Marshal,
Going to the bank was a great thought but more times than not the numbers do not make sense.

The First Step is to BUILD YOUR TEAM

1) Secure Financing- Look for a Hard Money Lender, Private lender, or ECT. Since you are a first-time flipper, shop around and find the best rates that make the most sense to you.

2) Connect with contractors - You're gonna need to have at least 3-5 in your pocket. Bring them all out to the property and go with the best numbers.

3) Deal Source- Since your an agent you have a little bit of an upper hand. Call around your network, tell them your plan and see if they have anything coming down the pipeline for you. Also, connect with local wholesalers in your markets. You can find them at your local REIA meet-ups.

Since you are also an agent, I would recommend reaching out to your network and asking around if anyone has any pocket listings that need some work.

1 Vote

Hey Jay,

I'm sorry to hear you are going through this. The best advice I would give you is to call your lender. The goal of these lenders is to get their money back, not to foreclose. Who knows they may be able to work something out with you and elevate the situation a hair. Also, speak to a lawyer and follow the play. @Steven Goldman was spot on!

0 Votes

Hey Torianne,
Congrats on finding a buyer! The first step ask for POF and verify they can purchase property, request EMD, and then send over the assignment contract!

2 Votes

Hey Rose, welcome to BP :)

What have you been reading and researching to decide on wholesaling land? I would be interested in taking a peek at those sources.
Whenever I have come across land deals I reach out to the big developers in my area as potential buyers, also depending on how the land is zoned and the size. However, my bread and butter is SFH.
In regards to your questions, are you based in South Carolina or is that your target market?
After you put a property under contract, your job is to find a buyer. Once that buyer is secured, you then will assign your rights to the original contract over to your buyer for a fee. Once the transaction closes, you will be compensated.
If you need help, I would recommend reaching out to local real estate attorneys in your area. These connections are vital for success in this career, it's all about building a strong network!
Also, just a word of advice.

Wholesaling can be tough to start, sometimes it might take a while before you can reap the rewards just don't give up! Wishing you success!

1 Vote

Quote from @Andrew Postell:

@Katlynn Teague yeah, what you are describing is "subject to". Usually, we don't get to choose what property we get with that. You can certainly pickup properties in that fashion but often those properties don't meet our own "personal" needs with a house. If you have been a realtor for more than 12 months then lots of lenders would be able to provide you a bank statement style loan. As a realtor, do you work with any lenders? If so, that's the first place I would be asking this question to.

Hope all of that makes sense. Thanks!

Andrew, thanks for the comment and it makes sense.
From my experience over the last year and a half being an agent, I have come to realize that anyone is open to making a deal as long as it is beneficial to both sides. We have had success with presenting the "subject to" options to sellers who did not originally plan to go down that path.
My focus and experience in real estate is on the investment side, I have multiple connections with hard money, conventional, and private money lenders. Our plan with this deal is to use one of our private money connections and we have already spoken with them about what we plan to do.
I guess I may have mis-phrased my question in this post. What I was looking for was any advice from investors who have house-hacked a sub-to deal.

0 Votes

All Forum Posts by: Katlynn Teague

Katlynn Teague has started 80 posts and replied 326 times.

Post: Need more Knowledge

Post: Preparing to Invest in Real Estate

Post: First Step Once Buyer Found

Post: Househacking a Creative Finance Deal

Post: My First Land Deal

Post: House flipping first time

Post: NEED ADVICE! Unable to pay hard money loan

Post: First Step Once Buyer Found

Post: Need more Knowledge

Post: Househacking a Creative Finance Deal