All Forum Posts by: Patrick Kaiser

What you said is "Wholesaling is dumb"

What you assumed, all of which is wrong:

99% of wholesalers or getting clients this way (wrong)

All wholesalers all spamming people (wrong)

They all do a few deals a year (wrong)

They should just do something else (opinion, and like saying that nobody should do any job except for the one that you do)

Most are watching courses and getting lied to (wrong)

I'm not even a wholesaler, I just dislike when people who know nothing about an industry bash on it. And yes, just because you are a rental property investor does not mean you know anything about other areas of real estate. I get calls asking if I want to buy car insurance. Does that mean Warren Buffet is stupid for owning Geico? I mean if somebody is spamming people selling insurance clearly every insurance agent is stupid and insurance brokers are not a real job.

My advice would probably do a super minor flip. Quickly. A house with a large lot and pool is a commodity. Don't max out ARV. Just clean it and paint it and replace carpet and sell for max value. keep repairs under $10k and do it quickly before summer comes.

 I just sold this house a few weeks ago maybe a mile and a half from that corner for $562,000

https://www.flexmls.com/share/...

I don't know anything about properties that old but you should be getting hopefully a property disclosure from the previous owner. If the wholesaler won't give it to you and you're not really familiar with what kind of inspections to do, I think I'd take a pass. #1 thing is never trust a wholesaler. I'm not anti-wholesaling, just remember, they do not represent you or your interests. A little healthy distrust is a good thing in all negotiations. 

 They have recently passed new laws targeting wholesaling in AZ as well

I'm glad to see people exercising caution and reserves/ backup plans. WAAAAY too many people out there suggesting stretching yourself to the limit on your first deal to get started with no experience, no idea how to rehab, and no idea how to invest. As other have suggested, these ideas are not rocket science, but the doing of them takes work, practice, etc. One of my favorite things about BP is at the end of every podcast they used to (maybe still do I can't remember) "What separates those that make it from those that come and go?" I have worked with dozens of "investors" over the years. Some have experience in construction trades, others have none, some have experience investing, some have none. But the single biggest thing that I've seen that leads to failure is the inability to learn. I've had brand new investors with no experience in flipping come to me telling me how to do everything, they don't know what kind of upgrades, they don't know the market dynamics, and they have purchased 5 houses all at once. And, commonly, they have no idea what the ARV is, they just do whatever they want to the house, then try to sell it and make money. The worst example of this was a guy bought a house in a 55+ neighborhood and was fixing it up like he saw on HGTV, super modern finishes, all carpet in every room (older folks don't like carpet) and finally I asked him why he would do all this for a 55+ home and he didn't even know it was 55+! He lost a lot of money and had to liquidate all the houses eventually. I lost track of him after house #2 but I believe he lost close to $100k.

/rant over but please do some research, join someone successful and do work for them for free. Education is never free. You either need to pay for it or work for it, and my advice is to go for it but get some hands on experience first, or your agent might be able to give you enough info as well. 

I work with wholesalers. Unlike the videos which tell you how easy it is and how you'll become a millionaire (those people are just trying to sell you their programs) most people fail at wholesaling. I've seen 3 back out in the last month. Just for background, I'm an agent, not a wholesaler, but they get recommended to me a lot for some reason. 

My opinion on why most fail, and how, to succeed, is to keep it simple. 

#1) Find a house and put it under contract for less than it's retail value. Part of this is being extremely good at valuing properties. You might spend some time researching what houses in your area sell for, and more specifically, what the houses that sell to corporations sell for, in cash. 

#2) Once you know what the house is able to be sold for to a corporation in cash, approach all the corporations in the area and tell them you have a house to sell them at X price. 

#3) Sell the contract. 

That's it. I talk to a lot of new wholesalers and they ask me questions like "Whats the market value of this house you've listed and/or have for sale?" I have people ask me probably every week "What does the seller want for the property?" Well, I get why they ask, but I tell them the same thing every time "Seller wants a million bucks, make me an offer and if its the highest offer, we'll take it." So you need to be prepared to know the market values of houses, make offers, and know the you can sell that contract to whoever the end user is, flipper, long term rental, or AirBNB, thats pretty much it.

So you need to get good at those things. The successful wholesalers I work with can pull comps and have an offer ready in 15 minutes. When you're approaching sellers, it "I can buy your house for this amount of money." In whatever avenue you're finding them it doesn't matter. You need to know how much you'll pay for a house and how much you can sell it for. Quickly. And IMO that's the primary reason most new people fail. There's obviously to it that that, but if you can make offers and get them under contract, at a good price, there are always buyers available. 

I disagree. Start with finding and putting sellers under contract. Buyers are usually easy to find. Just look up LLC's that own property in the area. There are also nationwide companies that will buy cashflowing rental properties, you can just call them and sell them houses. Finding good deals is the hard part but once you do, it's (at least for now) extremely easy to sell them.

You can wholesale for no money down. Just find something, put it under contract and sell the contract. Those 3 steps are simple, but not easy. Start with steps 1 and 2 and depending on your area, step 3 should be relatively easy. There's plenty of buyers looking for good deals. 

Dean Larsen

480-536-4402

[email protected]

I live in Mesa pretty sure Dean can do this. He works for an independent bank new in the area and they seem hungry for business.