All Forum Posts by: Nate S.

That is other thing, I don't want proceed picking rehab cost out of thin air. Reading on here of investors wanting good wholesalers that get them the right numbers. How would I go about figuring out the rehab cost on a paticular property without paying someone to inspect it unless it's something serious.

I've been restudying on the knowledge part it's been couple of years. So my job as a wholesaler, and to be good at it is finding good deals for investors to flip on. The price of my service(assignment fee) is saving them time/energy on finding good deals because they can't be everywhere.

Looking back at it now, it's finally starting to click. It's literally no different from myself doing the work finding distress properties to flip myself, do calculations of repair cost & ARV comps. Offer the seller a price, get under contract then sell the oppourunity/interest to other investors who actually flip property for a living. Just enough leaving enough meat on the bones for the investor to satisfied with the profit they make.

I have a other question regarding being a RE agent & wholesaler. I was also reading on here of wholesalers having their time/energy completely wasted. Examples like agents driving around not finding properties for them or making up excuses to show up.

I know there is deals to found on the MLS too. Thing is being a RE agent, and the properties I find on the MLS after doing the repair cost/ARV. How can I put seller under contract, and assign the contract to a other buyer/investor? Also when buying the house from the seller do you make a commission as well?

As for fire damaged houses what about getting in touch with firefighters, and getting tips from them on properties in return just if the deal works out.

What is the best ways to aquire these list?

Thanks for all the replies, and appreciate the advice. As for marketing might of been my other problem. I did alot of cold calling, putting up bandit signs, handed out business cards, constantly getting list from the MLS. I didn't send out letter though, and din't use FB or twitter. Regardless it was always a dead end.

Problem I'm having is not knowing the inner/engine wholesaling detail process. It's like for example knowing your car works but not knowing how the engine makes that car runs. I know the feeling once you know how it works just clicks, and rush just takes over. Then it becomes second nature.

The vague inner process like details of putting the contract together> transferring funds to escrow from seller, you, and buyer. Going through the banks etc.. Then the process of getting paid. Never did RE deal before.

Other problem I came across I know I'm not pitching offers right. Typical families that was clueless about RE felt like it was some scam or what their friends told them. I tried to offer deals to typical family, and they were use to the mainstream of having a RE license.

I know it's not required but that's a other reason why I want to get a RE license because I know sometimes wholesaling doesn't work on all situations. I even read on here a broker even does wholesaling on the side depends on the situation. It will give me a buyers list for investors as well. Plus it will help me understand contracts/laws better. Is my reasons good?

That was troubling me; how do you pitch a offer? saying you're going to buy the property in reality you're not? This was bothering me the most. All you're doing is selling the contract to someone else. Don't want to come across as a desperate wannabe. I tried saying I'm acting almost like a agent cutting out the fees,agency and saving them time/money searching for a buyer. Thank you for anyone is helping appreciate it.

I'm not a stranger to wholesaling, it's just flipping contracts or what real estate agents do just w/o the agency involved. My first attempt was after high school. Problem was I could never get a deal finding a seller to put under contract, and this time don't want to face that problem again.

Didn't really have a mentor, money, and never went through the fundamental process of actually going through of setting up the deal. I tried getting a RE license but never could pass the actual test, and went broke.

Forward almost a decade later, well let's just say I got a job that is very stable, and can't quit. Will this be the best approach, and my time is very limited. I figure being a RE agent/wholesaler is best as a side job. Since I got the required hours already going to study to retake the RE test.

Hopefully being a agent will give me a foundation for connections, and I can easily make deals being a agent or better yet a wholesaler. What is the best way to finding motivated sellers and avoid other wholesalers or investors attempting the same thing?

Do I add "your name and or assign" on the line or is automaticaly assignable unless it does not include "This contract may not be assignable"

add it as a part of the realtor contract? Just want to get the contract signed, then assign asap.

Still don't understand, yet should there be some clause protecting my best interest such as "Assignment" using their type of contracts.

Anyways my point is how do I conduct wholesaling contracting with realtors? making sure my contract is assignable. Also as for earnest deposit, do I just say here is $10-100.

Yeah also please pm me a rehab form also,thanks really appreciate it if you do.

I want to know the best ways to analyzing your real estate market,in order to determine if it's a good or bad place to invest in or rather start your business in.

Overall

Omaha,NE

Employment-2.3%

Year (2006) (2000) (1990)
Population 492,003 463,585 416,444

Total Housing Units-206,273
Renter Occupied-37.2%
Vacant Unites-8.4%

Average Rent-$500-749

But this is the section of omaha I'm going to invest in

http://www.city-data.com/zips/68111.html

I live in a NE,the property that's already for sale has a tenant occupied,creating a cash flow of $140 a month.The tenants told me themselves they pay for the utilities,and $450 a month.They wouldent give me the info,because I didn't have a bank statement saying I had funds in the bank.Which lately been trying to find a lender thats willing to let me to do 10% down,because I'm not tying up the much equity in such rental property.

I meant on gross is for the whole year of $1681 not a month,sorry for the misunderstanding.The mortgage here averages between 5-8% interest rate.The property dosen't need major rehab,actually in fact it's been rehabed now tenants made it kinda degrading but not so bad in a way it will cost me thousands.

The comps. are that houses sell around 30k to 69k which is odd,I mean houses vary in such large & low numbers in all in the same block,actually across from the street of each other in fact.

As for the debt service 4.8=(NOI)$870/(P&I)$180

Alright mike,ohio, and chance can you give me a proper,and more effective way to evaluating deals on rentals and rehab also.I'm doing what I can based on what I know,and studied,even though its not good enough.I want to learn how to do the math,calculating if its good deal or not.

Well thanks mike,by doing the math even made real estate even more fun.I know investing in real estate is serious,but might as well have fun also.Anyways here are the numbers

Income

Gross Rent- $1681.32

Vacancy Rate- 8%

Net Rental Income- $1546.83

Expenses

Repairs and Maintenance-$200 (Guess)

Utilities-$200(guess,only during when property is vacant)

Real Estate Taxes-$68.10

Insurance-$58.34

Reserve-$150

Total $676.44

Net Operating Income

(NOI) $870.44= (Income)$1546.83 - (Expenses)$676.44

Capitalization Rate

(Cap Rate).036 = (NOI) $870.44/(Purchase Price)$24,000

Property Value & Offer Price

(Our estimated Offer)$24,166.66=(NOI)870.44/(Cap Rate).036

Cash on Cash Return

(Cash on Cash)36%=(Profit)$870.44/(Down Payment)$2,400

Now after doing the math,seems like the sellers are selling at a good price,but I sense something is missing or miscalculated.Thanks mike didn't know doing such math will make me realize if its a good deal or not.The only thing that wasen't included was the closing cost also.I couldent get accurate information regarding the utilities,and repair.