All Forum Posts by: Rich Wahl

Hi BP!

I was hoping some of you may have a direction I can go on this potential deal here.

Brief synopsis of deal:

Seller from TN has about 5 acres of land, owns it free and clear, not zoned for anything yet, but it is on the side of a mountain, so would be fairly substantial development cost.

She wants to trade for a house here in Florida that her son can live in. Doesn't mind a little fixing up, but doesn't want a major rehab.

My question is, how would you guys go about finding a buyer who would be willing to consider a piece of property in another state for consideration for his house?

The other things that are hindering the deal are:

1. She has almost no money for closing costs or to put towards the deal.

2. She can't buy any house without either the land being sold first or the piece of property being most if not all of the deal on her side.

3. We can't go look at properties if the buyer wouldn't be willing to consider her land in the deal.

Any suggestions would be most helpful. I am going to contact another RE agent up her way and see if she would be willing to try and find a buyer for her land so that in the future maybe I can be on the purchase side for her property here, but any other innovative ideas are very welcomed!

@Wayne Brooks Thanks for the quick response! I knew the reverse order was a problem since while you are representing them you need to act as their best interest (and obvious net listing issues).

I was just making sure that law didn't dictate that you had to initiate contact under your realtor hat or realtor company first in order to represent them.

If I understand the concept correctly: It's kind of like trying to go through a wholesale deal, realize that they aren't motivated enough to sell to you, but recommending them to a good RE agent that can help them sell at list. That good agent would be you instead though.

Hi BP!

I've read some of the topics in this forum and heard some people mention that as a realtor and wholesaler, they sometimes find that their wholesale deals are better suited for retail deals. That makes sense.

My question is, let's say I'm talking to a potential seller on the phone and disclose that I am a realtor but am wearing my investor hat for this transaction. If I find that the seller is not willing to sell at my price, but still wants to sell, can I than put on my agent hat and offer to represent him and list his/her house? Or is their some kind of conflict of interest there?

Is there a problem with the way the transaction started, since I advertised to him with my investors hat on? Obviously my broker would have a say in this as well, but I'm curious as to what you guys experience is with this. Thanks!

hi bp!

Id like to pose a question to all of the veteran wholesalers out there, what are some things you wish you knew before your first wholesale deal. I think most of us newbies know just how hard it is, so we can skip that part, but anything else you could share wi us would be very valuable.

Thanks!

Good luck John! Would be interested in any updates you have! Especially your callback rate. I've heard 3% is good, and I've also heard people getting up to 13%, seems to be a huge range there, but I'm leaning more towards the lower end of that. Let us know!

Hi Ted,

I'm wondering how you find such targeted leads like this? Is this through a private lead gen site or through the county records? If you could share where to find this information, it would be MUCH appreciated, thanks!

Gina, John, Tom,

I really appreciate all of your input and feedback. I do have a lot of education left before jumping in, I know enough to at least know that! I have the basic concept down of what I need to do, simply look at the comps in the direct neighborhood and see what a majority of those houses have for features. Obviously you wouldn't put a Granite counter-top in a house that has a $55k ARV in a bad area.

I was thinking of having a GC come out with me the first time and show me the ropes. I've read that they tend to cost about $350 to do a full assessment? Is that about accurate?

Also, is there such a thing as "over pricing" the rehab cost. Obviously you could do that, but I feel like the buyer, when he does his/her walk-through would be relieved that it is over-priced and think the deal is even better. This isn't something I would do on purpose, but if I had to lean towards one-side of it, I think this one is better.

Thanks guys, this is extremely helpful.

@John Moore.

While knowing the ARV is a must I feel in any situation you are going to be fixing a home, I'm referring specifically to wholesaling and the process other wholesalers use to estimate rehab costs.

What I would do to the house, likely is not going to be what the buyer would do to the house. I'm sure if there was a huge whole in the wall, we'd both agree that has to be replaced, but since I am basically pricing this out for someone else, What process have people used?

By the way, I just bought and downloaded J Scott's book, on page 11 so hopefully that will help!

Hi guys!

I have a question for the experienced wholesalers out there. How does someone, with no construction background estimate the rehab cost of a house.

I know J Scott wrote a book on it, and I will likely pick that up, and I have read in another book, that making a spreadsheet (or having one available) with all of the common things found in each room is a good way to start.

So if the kitchen needs (for example):

-new countertops

-new tile floor

-new backsplash

-new stove

I would just measure everything, write down the materials that are already in there (i.e - granite countertops), and price it out at Home Depot or something?

As for the labor costs - how do people usually go about estimating that? I feel it could get very expensive, and/or time consuming having a bunch of different contractors come out and give quotes, or even more expensive, a GC.

Any input or methodologies on this subject that you all have employed succesffully would be so much appreciated! Thanks!

@Manny cirino. That sounds Ike a good plan. Do a lot of sellers tend to come back with revised contracts? Or just accept it as is?

@tyrus s. I thought that was a bit high, I will do some more shopping.