All Forum Posts by: Brandon Kargol

Think about what you provide to the seller that no one else can…

Closing Times (No banks and No Realtors means you can close as soon as your end buyer is ready)

No Commissions (There's no 6% commissions)

No Closing costs (Seller saves a few thousands here)

An exact Net Purchase Price (Your seller knows exactly what he or she is getting paid, while listing with a realtor is simply an educated guess on what someone will pay for their property, but not guaranteed)

These are massive advantages with using a wholesaler. You need to really pitch this to the seller cause most don't think of the advantages. 

Another HUGE advantage is that the seller can sell their property in an "as is" condition. Why is this such a big deal? Well most realtors won't list a property unless it's in a retail condition. 

So tell your seller this "Mr/Mrs Seller, I am willing to buy your property "as is". If you went with a realtor then you're looking at "X" amount of dollars in out of pocket expenses for new carpet, new paint, updated kitchen and bathrooms, new flooring so forth and so on." 

I tell you what. When you tell a seller that in order for their property to be in retail condition that they need to spend $12,000 out of pocket… They will be much more open to negotiations. 

Example, Last week I was on the phone with a seller. His property had an ARV of $160,000. I gave him a cash offer of $95,000 and he laughed for a couple minutes at me. Does is sound like I was trying to rip him off? Not at all, his property was a rental. It was clean. But the house had been built in the 60's and looked like it hadn't been updated since. So there was NO WAY he was going to be getting anywhere near a 160k sale price given it's condition. We were looking at 17K in rehab/update costs. So heres what I told him (after he was done laughing) "Mr Seller I can take 160k and go buy a brand new comparable house (in my market) with a two car attached garage (which his didn't have), stainless steel kitchen, and a formal dinning room area. Does your house have that?" He hung up on me. Moral of the story is that even though a house might be clean and not damaged it still might need update work. Remember, ARV means repairs are made and UPDATES are made.

Hope this helps! 

As a wholesaler you should really try and only have the property tied up for a few weeks. After all, thats the biggest solution you provide to a seller. Being able to move their property FAST. Having a buyers list is one thing, but having a fast acting buyers list is another and its something you should strive for. 

As far as the whole "I'll Buy You House For CASH" thing goes… With the exception of a seller financed deal EVERY real estate transaction is a cash transaction. Regardless of how a deal is funded the money (cash) gets wired to your title company or closing attorney. Even if the funds are from a conventional loan, the transaction still has cash being wired into escrow. Only its cash from the bank, but it's cash none the less. So is it unethical to say you're paying with cash? Absolutely not. It's a term used for marketing, and often times people think that when you're buying something for cash that you're tapping into your personal bank account. Which isn't always true. 

I have used list source several times over periods of more then a month. I have never had an issue. As a matter of fact I received a phone call from list source several months ago to have an indefinite 20% discount added to my account for each purchase. I pay around $40 for about 500 absentee owner leads. 

I personally seal my letters. In all technicality the post office is not required to send unsealed envelopes. I use to send unsealed letters until I was notified by my postmaster on the USPS policy of unsealed letters. I have noticed no difference in a response rate from unsealed and sealed. As I sit right now (with yellow letters) my response rate is right around 14%. With my letters I also add my business card. I feel like the business card adds some more legitimacy to the letter. 

This is such a shame. As a fellow wholesaler I can say that most wholesalers do a very poor job with their business. They read a book. Drop some bandit signs. Send a few letters and then HOPE everything falls into place. Wholesaler gurus say that anyone can be a wholesaler. Well the truth is, it takes a certain breed. Not everyone has the touch or the ability/knowledge to run a business. After all thats what wholesaling really is. Sorry for your bad experiences folks! 

Hey BP Community,

Quick question. I have a seller who owns a free and clear property. We are going to do a seller financed deal. My question is this… During the term of the seller financing who maintains the title and deed of the property?

I obviously have some clarifying to do.

1. My intial offer was fair given the condition of the property. However, the sellers financial state (which wasn't fully known at the time) on the property made my offer impossible. 

2. The property does not have the equity to make it a wholesale deal. So it would have to be a sub2. Which I have limited knowledge on, hence the reason I created this discussion. 

3. The seller and I have a great relationship. She's needs the house off her hands and is willing to sell it at cost of the mortage payoff (approx 80k). Literally the deal is in my court. The seller is at the highest level of motivation. My biggest enemy is the numbers. I just don't know how to properly structure a sub2 deal.

4. The seller has only talked to the bank in regards to finding out payoff info and the foreclosure info. 

The house is in preforclosure, the seller loses the property on October 23rd, that's the day an auction date is generated and released to the public. Also, thank you Wayne for the info on the timing of paying the loan current. 

My question in regards to protecting myself is this… If I pay the loan current before closing what is keeping the seller from backing out of the deal and me being out (in this case) $5,900?

@Account Closed This is very helpful. I have the cash to bring the loan current, however, how do I protect myself from paying the loan current and losing the deal? My initial thought was to purchase the property sub2 and turn around and sell it to a fix and flip investor. Is this an option or is it outside the realm of possibility for this situation?