All Forum Posts by: Scott Swanson

Ben,

There's many things to consider. What price range are you interested in? Are you looking to finance a deal or pay cash? Are you interested in managing it yourself or do you need a property manager? What is your minimum profit amount? The overall prices in Indiana and taxes are less than Illinois. The rents are slightly lower but the profit is definitely there. There are still a few areas in the south suburbs where you can find good deals as well. Indiana offers a wide array of good rental properties and at reasonable prices.  Knowing what your specific criteria is, is critical to where you invest. I hope this helps and best of luck to you. 

Jonathan,

A double close does NOT get you around the law. You get one close and they have locked up all the ways around it and a double close is considered a close!

Hi Ethan,

You didn't mention what market you're interested in. But try to hook up with a realtor that works with investors. They may be able to provide you with some good deals that are not listed or about to be listed. Best of luck.

Steve,

You told Marion that it's illegal to wholesale in Indiana. That's an incorrect statement. There's nothing illegal about it as long as you follow the correct guidelines.

DeAnn,

First off, you need to look at your end goal for this property. I ran some numbers and as far as cash flow goes, it comes out to less than a 4% return. We don't offer properties unless they're a minimum of 9%. However, it seems that it would work well as a flip. Again, I took an educated guess at the numbers, but if you fixed it up and flipped it for $800k, your profit is approximately 24% or $150k. This includes holding costs. You could use a private or hard money lender to finance it. They will loan you up to 90% of the LTV and some will lend you 100% of the rehab costs. So based on the numbers you gave, the property would qualify. Best of luck.

Michael,

You sound like you have some experience and that's a huge advantage. I really think in several months the market will free up, due to forbearance. It will create a lot of short sales and  pre foreclosures. So hang in there and I hope you find yourself a great deal!

Michael,

David A. made some great points. There's a lot involved in taking on a flip. Do you have a "solid" contractor do the work? Is he willing to go to every property you're interested in and give you an estimate? Do you know what type of materials to use, for the area you're rehabbing? Do you have someone who is qualified to inspect properties? Do you know how to run the numbers the "correct" way? Do you realize that you have to include holding costs such as: utilities, insurance, closing costs and taxes? Actually, the numbers are the easy part. Finding good solid deals in 2020 is the hard part. People are overbidding at the auctions and Sheriff sales. There's no meat left on the bone. I wish you luck, but all of the things I mentioned need to be considered. 

Jordan,

Here's what I tell new wholesalers: If you don't have buyers, you DON'T have a business. PERIOD. The property you found is a perfect example. You did all that work but don't have anyone to sell it to! Wholesaling is a step by step process and having buyers first, is critical. Don't let people tell you that if you have a great deal, the buyers will come. Bull. Yes, you might be lucky and sell 1 or 2 properties that way, but tying up a houses with a contract and not having any potential buyers is doing things backwards. Why would you do all of that work, not knowing if you can sell it? It doesn't make any sense! I'm not scolding you, I just want you to be aware of the process. Best of luck.

Joseph, You can legally do 1 deal per year in Illinois. You don't need a realtor! 

Steve,

When a seller sells with a realtor, do they get full price? Most of the time they don't. So the realtor is NOT getting them full price so why aren't you upset about that? If the realtor can't get full asking price, we ALL know there's no way they're lowering their fee. Why Not? You said wholesaslers low ball and why don't they give that price to the seller. Because we found the other buyer!! Just like the realtor found a buyer. They get paid for their services, just as I do. I work my butt off to find a buyer and I'm sorry, but I don't work for free. Neither does the realtor. If the seller wants a higher price, then they need to go out and find that person who will buy it for that higher price. That takes time, effort and patience. That's why I get paid what I do. Do you knowhow many people buy "products" from other people and then resell them at a higher price? It happens everywhere! I should also note that I've sold properties for much less than the 5% the realtor gets. There's been times when I've sold a property for $500. I can GUARANTEE a realtor won't do that. So who's the "bag guy" in all of this? No one. It's business and you get what the market bares.