All Forum Posts by: Pearline Hardy

I actually attended the 3 day seminar...well I watched (they sent me a video recording of it since we couldnt make it). They did give good information although they tried to encourage you to buy their $18,000 package or get a $10,000 mentor. They do however give financing like advertised...kind of. It's not complete financing like we were led to believe. On 3 yr loans they give you 50% at 1% interest but the other half you use cannot come from any loan that attaches to the house including seller financed. So if u have cash then it's good, especially since the payments are interest only. They also do 3 day 100% loans for wholesaling but they charge u 1% of the loan amount as a fee. There are transactional lending companies that do that. The company also has a 3 month loan program where they loan you 75% of the money for short-term flips. Again yout 25% must come from your own cash. But all the info they taught I have found on biggerpockets plus more. So not sure if its worth the $2k, 

Congratulations Aaron! Smart way to get that deal to a retail buyer. It definitely pays to think outside the box. I don't even think about retail buyers when wholesaling. Thanks for sharing and opening my mind to a new possibility.

What about Oak Grove?

After you find your seller using @Jack Butala, you dont need an appraisal, but you do need a good ARV to go by. This is based on similiar houses that have sold in the same neighborhood within the last 30 days (if the area has been pretty stable, you can go back further). When 1st starting out, you should use a real estate agent to get those numbers. If you arent already connected with one, you can tell him/her that if they help u out with the ARVs, you will refer all sellers you cant help to him/her.

Check out BPs book on wholesaling. Its a start. Under "learn" go to "how-to-guides"

@Chuck Steadman Good point. I never thought about making him pay for the attorney. 

 Its on Amazon and also here on BP, but they make you buy the flipper book too. J. Scott The Book on Estimating Rehab costs. 

@Jaelyn Whisler to come up with rehab estimates, it just takes practice really. Starting out I would definitely read Jay. Scott's book on estimating rehab cost. While it wont be able to give you exact numbers on your particular properties, it will show you how to start thinking like a contractor and show you what things to look for. It will also give you tips on how to find rehab costs for individual projects. The best advice I give, is to either have your buyer come get their own estimates if you have a particular buyer in mind for that project. Or get a referral for a contractor and have him walk through the property and give you two estimates. One for rent ready and one for resale. Most will do this for free, but it's good to have a relationship with the contractor so they know that they will eventually get something out of this, such as a referral or to be use on one of your other projects. Try to find a mentor who wholesales full time and get under their wing and they should be able to help you with estimating rehab cost or getting you to a good contractor.

Another thing I do is keep track of the properties on sale. I like to keep connected with the buyers that I can get his or her feedback on how close my rehab estimates were that I can adjust in the future.

Sorry for any typos, I'm voice texting :-)

 Yes definitely! Well the plan is to close on the just like normally and then to enter into a second contract where I will be paid as though I were the project manager working on his house. We will do regular drawers, and if the money stops coming the work stops. I am having the contract drawn up by an attorney.

@Jacqueline Boomer in my experience, you really dont need that much for earnest  money. Most sellers will take $50 or $100, and yes as @Jaelyn Whisler said you dont give it to the buyer. It goes in escrow with the title co or attorney. As for putting the contracts in your name or not, its up to you. Creating an LLC or other entity is just more money and as a beginner wholesaler, your money is better spent on marketing. I personally created an LLC because the transactional lender we were using at the time would only lend to LLCs

My best advice to you is 

1. network with some local investors on BP or at a REIA and ask them for their assignment and purchase contracts,

2. Keep learning as much as you can about wholesaling by asking questions, reading others forum posts, listening to podcasts, and reading books and blog posts abouy the subject (I do podcasts and audio books through audible on amazon in the car to work everyday), 

3. Find 3-4 buyers in your area and find out what they want. (I got mine from BP connections, and responses from craigslist ad I posted. I only have 6). Having 5 great buyers is better than having 500 you just get from anywhere.

4. Start marketing for properties ASAP. You will definitely learn more by doing and not being afraid to ask questions.

5. Make sure your ARV and rehab numbers are on point. Thats the best way to keep your buyers coming back for more...and referring you to others.

Great luck to you!!!

Yes @Jaelyn Whisler I completely agree. We've never renovated a property but definitely plan to in the future. So being up close and personal during the rehab process will be both exciting and educational. We ended up telling him we're up for the challenge and our going to do it.

Thanks all for tge advice!