All Forum Posts by: Niklas Hilmoe

@Ricardo Ramirez You can wholesale on market deals. First, you need to find properties that have sat on the MLS for a while. If they've sat for a while it means it's overpriced. Then you make an offer BELOW what it is listed for. THAT is why a cash buyer would buy your on market deal, because you actually got it for a price that makes sense. Keep in mind, EVERYTHING in wholesaling is a numbers game. You're gonna have to send hundreds of low-ball offers to get one accepted. Then you need POF, you can get one from a hard money lender.

The only benefit of on market is that you don't need a marketing budget, you just have to submit offers. However, I agree with everyone else in this thread that off market is the best way to go.

Also, I'd like to address a lot of the other crap in this thread...and there's a lot of it.

I will agree that what wholesalers do isn't too far off from brokering, and certainly organizing and creating best practices and standard contracts is propbably necessary. But having a license doesn't mean you won't operate like a greaseball. There are WAY more bad realtors than wholesalers. Trust me, I know. Plenty of realtors who don't actually operate as a fiduciary, but just do the bare minimum for their commission.

However, we don't screw people over. Yes we benefit from them being in a distressed situation or just plain wanting convenience, but saying we deal with suckers is a poor view of people and assumes that they are dumb....also, wholesalers don't even go after the same properties agents do a lot of the times.

There are bad wholesalers who don't know what they are doing. Example: getting a property under contract too close to retail, property owner ships their belongings across the country, wholesaler can't sell the deal becasue they locked it up too high -so they bail and screw over the homeowener. So, if you are a new wholesaler, LEARN HOW TO COMP PROPERTIES. Or, a FEW bad actors whose intention isn't even to wholesale, but to cloud title and then charge a fee in the future to uncloud title when the homeowner wants to transact.

However, the anti-wholesaling movement, which is really outlawing wholesaling without a license, is being driven by NAR (national association of realtors) and NOT by consumer protection agencies. NAR wants wholesalers under the broker agent model so they can make more money. THAT'S IT.

Thanks for your input!

@Mary M. Listing it on the market is the opposite of what sellers who work with wholesalers want or need: quick and convenient. "Why don't you list it with a realtor" is a question every single whoesaler who is worth anything asks the seller. I always explain that working with me won't get them the most money but I will make it very quick and easy. Mary, these people aren't stupid. they know they can get more listing it. But there's always a specific reason why they don't. You're applying your value system, i.e. get the most amount of money, to their situation. Again, most people will want the most amount of money and they should get the most, but sometimes they can't or don't want to.

@Mary M. I understand your sentiment about wholesaling but I have to disagree. Wolesalers bring a valuable service to the marketplace by serving the portion not covered by realtors. This particualr property I posted about needs a wholesaler. It's completely trashed and full of junk and the as-is value is so low a realtor would not touch it because the commisions would not be worth it. A lot of sellers in distressed situations, how easy or difficult it may be, do not know how to connect their beat uo property with the right end buyer. Or, regardless of condition, they could be in pre-foreclosure and with an auction date a few days away because they were in denial and waiting to do something about it (very common). They're so many situations where a wholesaler is the best fit. Most people won't sell with a wholesaler, but the small amount that do get value by having their problem solved conveniently. The cash buyer also gets value because they get a good deal without having to spend the money and time to find it. Seller and buyer each get value which is why the wholesaler gets to make money.

If no one who does business in that area responds, there's some good youtube videos on how to vet wholesale friendly title companies. Then you'd call and vet the ones around you and pick one.

Jerry Norton has a free purchase and sale, as well as assignment contract (I'm not an attorney, use at your own risk). Find a wholesale friendly title company (youtube videos available on how to vet title companies for wholesale) and ask them if they're willing to review whatever contract you decide on. A lot of title companies have an in-house attorney.

@Joe S.@Brendon Pishny@Bill B.@Mary M.@Theresa Harris Thanks for the input everyone. I can't do seller rent back with a hold back because this is a wholesale deal and my buyer wants the property vacant at closing. The only thing I can think of is to give him cash after my buyer gives me the green light on the deal and file a memorandum.

I'll elect not to do so and stand firm on no money before closing. I do not trust this guy at all. Thanks everyone.

What's your process in situations where a seller needs some cash before closing to help with moving costs?

@Randall E Collins First of all, if you've truly been putting in consistent action for a year with no results, be proud of yourself as that takes more tenacity than most people possess. I'd search for the "wholesale hotline" podcast and find episode #56 on wholesaling with no money. They share some powerful ideas on getting a deal with limited funds. 

Ishmael, I'd recommend listening to "real estate disruptors" and "wholesale hotline".  Learn the basics, pick a marketing strategy (do you have time or money? you have to have a lot of 1 and at least little of the other), take action on the revenue generating actions (marketing, aka lead gen), and BE CONSISTENT. So many wholesalers will try 1 marketing startegy for a week or two and then switch when they don't see results and do that new marketing strategy for another week or two, and so on. Then after a month or two they give up. CONSISTENCY. All marketing strategies work, especially for the purposes of getting your first few deals. Also, don't buy any mentorship programs until you get a deal or two. They can be very valuable to scale up, but if you haven't done any deals, keep that money and spend it on marketing. Keep in mind, I know millionaire wholesalers who took as much as 8 months to get their first deal. But once you get that first one, the next one comes much quicker. You have to have a certain mindset to make it in wholesaling, and even then you're gonna be fighting the urge to quit.