All Forum Posts by: Tim Shin

 If it's illegal, then yes they should not be doing it that way. However, in many states it's not illegal and therefore legitimate. That's like saying in some states it's illegal to 

against the law for a woman to drive a car in Main Street unless her husband is walking in front of the car waving a red flag (Waynesboro, Virginia)

http://justsomething.co/the-22-most-ridiculous-us-laws-still-in-effect-today-2/2/

Why do they have to close first? Why not just close both at the same time? What's the difference if it happens in less than 30days and everyone is happy?

 What difference does it make to you if a seller decides to sell the property to a wholesaler and the wholesaler goes to market it? If it's a good deal it won't be pending for months. If they've represented the deal to the seller as such where the seller understands the wholesaler is seeking a new buyer why would you insist that the seller not behave as they want? In my opinion a reputable wholesaler could get a property under contract at significant discount and sell it to the right investor at a discount from market. This works well with properties that are not selling for distress or poor real estate agency. Often they are represented by crooked agents who don't have their interests at heart. I've seen agents fend off full price buyers so they could capture the deal from their client at a discount. 

 I'm not sure where you're located but here in Houston we've got plenty of both reputable and both crooked wholesalers. However, my last couple o deals never made it to blast out to my buyer's list or people I don't know well because I have networked with dependable buyers who know I will give them a good deal and who have gotten over how much I might make on it. They don't care if I make $5000 or $36,000 if they're making $100,000. I use conservative numbers which benefit the end buyer. 

I will not, however, hold a buyer's hand through doing their own due diligence. I'll accommodate them but I'm not going to do it for them. 

My sellers love me because they have great customer experiences where I treat them as king/queen and will do what it takes to solve THEIR problem first. I'm honest with them in letting them know what their property could sell for if they put all the repairs in and listed it with an agent. I will even suggest agents who will help them. But often repairs are beyond them and I will help them close within 30 days unless they have title issues. (One deal took us 6 months because of their title). I let them know up front it's likely I will sell their property to another investor. I don't want to be rehabber/flipper but if there is a deal that I can't resist I might become one for it. 

This all results in a great, discounted deal for the end buyer.

I understand your frustrations though, I see the bad wholesale listings come through to me. 

I agree. This is what you should be considering. While some wholesalers may be crooked and will try to wholesale other people's deals without having a contract, the legitimate wholesaler can get a good bargain on the MLS from a seller if the conditions are right. A good and legitimate wholesaler provides a discounted deal to the end buyer where they will make money off it. Your job as a wholesaler is to provide awesome deals. You get an awesome deal from the MLS at discount and offer that to investors BELOW MARKET. That's the point and the only way you should offer a wholesale deal. Wholetailing is a different story.

@iman yu

Get congratulations! I love going to RICH on deal a minute nights. Is that the event where you picked it up? Can you give us some more details? Neighborhood, ARV, cost of repairs, projected expenses? I'd love to know more juicy detail. Helpful!

 Thanks! What %s do you use to filter your properties for more in depth analysis? Am I right to think that maintenance % in the Heights for $3000/mo rent should be lower than 5th Ward $1000/mo? If they were both 10% you'd be talking about needing $300/mo in maintenance savings just for being in the Heights rather than $100/mo in the 5th Ward. 

What %s do you use to filter your properties for more in depth analysis? 

 I second this message! You'll find some of us around those meet ups in the city and you can ask about it. There was a wholesaling panel not to long ago at RICH that I think you missed but apparently it got heated... 

 Hey Jeremy and Jessica, let us know how this goes for you! My wife and I might try working with these guys if you have a good experience.