All Forum Posts by: Sean Cole

Nope!


Very rarely, when dealing with an individual vs. a company selling a house, the individual will get offended and instruct the agent to not accept any more offers from you.

Thanks for replying, @Sarah Ziehr and @Account Closed.  I spend hours giving contractor referrals to friends who have work to do around their own houses because I "flip houses."


I guess I meant to ask a different question in the first place.  Can we come up with another term to use on BP to differentiate newbie wholesalers from pros?

Having just recently made an effort to get active on BP, I see that the prevailing thoughts here about wholesalers are actually the same as mine - and I wholesale for a living! So many folks without money or experience hear that they should get started by wholesaling deals because "it's easy money." I get leads from new wholesalers every now and then, and they rehabs are almost always tens of thousands of dollars more than they say, or the ARV is tens of thousands less than they say. Even worse is when I use their own numbers and it's a terrible deal!

Having been a full-time wholesaler for 4 years now, with nearly 300 houses wholesaled, I still don't like telling friends, acquaintances, etc. that I'm a "wholesaler" because I don't want to be lumped into the same category as the fly-by-night guys and newbies. It turns into, however, a 15 second description of what I do, which is truthfully more than just wholesaling if our customers need the help or HML.

So, is there another term that we can use to describe a pro wholesaler who does it full-time because they prefer to wholesale instead of rehabbing themselves?  I find that we're great at finding deals and are better off financially making a few grand 60 times a year than rehabbing 3-4 houses a year.  We're also in a different risk/reward position than rehabbers, but we also genuinely love helping people find new deals.  In fact, a new lead was referred to me 2 weeks ago because she'd finished and sold her first rehab 10 weeks prior and had been desperately seeking a house to rehab since then.  I didn't have one available in her target markets, but did have one just outside her area and it was one that I knew would fit the design aesthetic I saw on her first rehab.  Within days, she'd signed to buy the house we showed her and we're both ecstatic.

That's why I wholesale full-time.  

Welcome aboard!  Congrats on getting your license this week!

@Micah Dickson, tell me about your cloud system - I use almost exclusively cloud-based solutions for our company, but am still using Excel for bookkeeping.

@Johann Jells, I wish!  The deductible was about equal to what I was able to get the kitchen redone for, so we wound up not filing a claim.

You'd need to get the assignee's agreement (the final buyer), but there's no reason you couldn't.  An assignment in this case is when a buyer/assignor (the wholesaler) assigns all rights and responsibilities under the contract to someone else (the assignee/rehabber).  To do an assignment correctly, the assignee would need to see the original contract and sign/initial everywhere that you had done so.  At least in Ohio, a valid assignment would also require the seller to give their permission.

Can I see a generic sample of the lead format?  I use a salesforce build for my business and ease of import is extremely important!

 That's why I pointed out the difference between "earnings" and "profit" in my above post...  

Add up all of the cash you put into a project - this is actual dollar bills removed from your checking account - and that's your initial investment. Your Earnings Line 603 on the HUD when you sell the house - that is, the check you get from the title company. If you borrow through a mortgage, we're still ok here because the mortgage would be shown as paid off on the HUD.


Your last question is correct. If you borrow, your ROI should be much higher. The caveat is that the interest monster eats every single month! If you don't finish and sell quickly, those interest payments can eat up all of your profit.

Not to be too picky, but Earnings in the above actually means Profit, as the ROI calculation is (Earnings - Initial Investment)/Initial Investment. Obviously, (Earnings - Initial Investment) = Profit.