All Forum Posts by: Mike B.

That same fact would apply to Realtor's commissions, no? 

If your commission equates to $25k and my fee mark up is $10k, are you the one screwing the seller or is that still me?

 Yes, anybody can "offer" quick and fast closings, but can you guarantee it? Will you hand the seller $5k nonrefundable on the spot to back up your claim? That's the difference I'm referring to.

 I agree that wholesalers aren't the only people in the industry that have contacts for cash buyers. My point was that if a Realtor's cash buyers pass, the realtor isn't prepared to close on it. I never meant to imply that you personally didn't have the ability to close on a property quickly, I'm saying as a business model, you aren't guaranteeing a closing when you agree to list the property. It's all together possible that I have a different idea of what wholesaling is or should be.

I also agree that wholesalers should have an RE license. If for nothing else, you should be able to comp properties on your own to determine value. It's hard to own the numbers you're putting out to the world if you're relying on third party opinions. Further, wholesalers shouldn't be assigning rehab numbers if they haven't had it quoted by a GC OR have never done a rehab project themselves.

@Charlie MacPherson I have an re license and I know several other wholesalers that have them as well. It costs $700 and part time classes for 2 months... you guys act like you took classes at Harvard. Why do you assume we’re all acting outside of the law?

@Mike Cumbie the best example I can give you is this...seller has a foreclosure sale date next Friday. You put it on the mls and have people interested but can’t close in that timeframe. Are you, as their realtor, prepared to close on the property yourself so they don’t lose their equity?

I am...and have people on BP that can verify that I’ve done this on several occasions.

I won’t argue that a good portion of wholesalers don’t have the ability to close and can be dishonest. However, my point from the beginning was that I can paint with that same wide brush and say most (not all) realtors are just as worthless.

Tough crowd... Unfortunately, BP generally looks at wholesalers with the same disdain that society has for Realtors. It's always comical to see the Realtors jump on with their holier than thou attitude only to log off and talk one of their clients into purchasing an overpriced house so they can get a bigger commission check.

@Aiesha Hooper No problem. EM is short for earnest money. 

In my experience, most wholesale deals come from a seller with a need to sell as opposed to an owner that wants to sell. Those sellers have issues that are typically time sensitive...which means were under a time crunch to get it closed. If we waste 1-2 weeks with a buyer that backs out, there's a good shot we end up losing the deal.

I charge non-refundable deposits on every property. We typically have one shot with one buyer to close. If you can't perform, I'm not happy but at least I get my EM back. I won't take that loss if you get cold feet, didn't understand your construction numbers or can't secure funding. 

With that being said, wholesale properties are for seasoned investors. They know what they're looking for, understand their construction pricing and can assume the risks. New investors may want to work with a realtor on their first deal. The contracts and structure will give you more protection.

As for the construction contacts, if they're unwilling to share contacts at RE meet ups, go to Angie's list and make some calls, walk their projects and check their references. Understand what they're charging per sq ft so you are more precise when running your numbers online. It will certainly help with the speed of your offers. Try and limit your first deal to a cosmetic flip or hold.

While all of our networking events have been by invite only to this point, we are opening the doors to anyone who has a passion for RE investments. We'll be holding this event at our office in Pilsen. Whether you're new or old, everyone is welcome. We will be discussing wholesale strategies, funding options, JV structures and how to reduce costs during the process. This is a free event, but you must rsvp. Food and refreshments will be available. Hope to see everyone there!

How to find us:

Park on the street NOT in the lot. Enter the building through the back door. A team member will be there to let you in.

917 W 18th St, Chicago

It's like the old saying, "It's not enough that I win, my friends must also fail."