All Forum Posts by: Steven Thompson

Thank you to everyone on this thread. Its been a while since I have revisited this thread.  For @Shariyf Grevious and @Marcus Green as for the yellow letters I use its a pretty standard letter, with the individuals name and an actual stamp. I want this to look as authentic as possible. I have had great results with this and since this post I have done over 45 Wholesale deals with 4 currently in escrow and working on 6 more. I do share tips on my YouTube channel as well as here, so hope this helps.

Hi @James Clayton I'm a wholesaler in Las Vegas Nevada and I have done a number of Wholesale deals successfully.  I  agree with @Jay Hinrichs on this one. There are a lot of problems that can arise when doing this type of deal and ultimately you have an obligation to structure a good deal for the seller and the buyer. If you don't trust me you will not last long in this industry. 

The type of deal that your looking to do can be done but there are a lot of factors that have to be looked at and a lot of precautions that have to be considered. Most experienced wholesalers my self included shy away from putting together deals like that. One reason is there are a lot of factors that can go wrong and I make the same if not more money on easier deals that cost me less time. 

On the bright side I do happen to know someone that does those types of deals. He has been in Real Estate for over 30 years and is experienced in these types of deals, but if you haven't done any type of specialty structured deal, he may not work with you. Let me tell you first hand these types of deals take a lot of prep work , planing and sorting because not every property is a deal that fits, but he does it in such a way that the seller is protected and this will involve you having some capital ready just in case its needed to put in.  

 Most doctors take 10 years of schooling to learn their trade and niche I say most because, some go for longer. The average Attorney is in school for a minimum of 8 years before they have their J.D and even then it takes them time before they start making money. I'm saying this because I would like to advise you that it takes a lot of prep work to learn this business and odds are your going to have to pay a lot of money for a short cut (which really won't be a short cut) or spend  a lot of time researching and learning your craft.

Reach out to me and I will have some questions for your to see if I can put you in contact with him, but if this is your first ever deal and you haven't learned the basics of real estate investing or wholesaling and applied them already, this strategy is going to be a very difficult one for you to do and I would advise against it for someone who is just starting out.

Just my two cents and I wish you the Best of Luck 

Hi @John Lee and @Robert Adams

Here is the information on the REI meeting tonight August 13th, 2015 at Gavish Real Estate office 6585 High Street, Las Vegas, NV, 89113. The time of the meeting 7 00 p.m to 10:00 p.m and I will email both of you the flyer for My Shop. Hope to see you tonight.

Steve

Hi John and Welcome to BP! I am also in Las Vegas and they have the Tax deed auctions twice a year once in April and again in November. I am hosting a Workshop on the 22nd of this month. This will be a great networking opportunity and provide great resources. If you would like to find out more information about it please feel free to reach out to me. Also Phil Dwyers meetup on the 25th and the Local REI is having their meeting on Thursday August 13th, 2015. I encourage you to reach out to these events it will help with your journey to become a Real Estate Investor. I wish you luck and look forward to talking with you.

Hello everyone.

It looks like when you talk about wholesaling it is a touchy or sticky subject. A lot of people scream its illegal, many people say it’s against the law and you are acting like a unlicensed broker or unlicensed agent.

I get it. There are laws in place that prohibit certain practices, but I also understand that there's a right way and a wrong way to be a wholesaler. As someone who has wholesaled and number of deals and opportunities to investors I would like to share my two cents. My intentions are not to offend anyone but to inform and solicit opinions.

As a wholesaler we are not representing buyers or sellers, we are selling paper not properties. We gain equitable interest in a property (non deceptively) and assign our interest to another investment party for a fee, not too different from the way that mortgages are assigned from bank to bank or bank to investment company, similar concepts. I understand the mortgage process is different, but the concepts are similar. Wholesalers are not trying to take jobs away from agents by any means. I know a number of agents and brokers and we work together, also in some cases I have handed them leads that I couldn’t close because of price difference.

Every seller that I have done business with has been made aware of me assigning my positions and in some cases I have done business with agents and have given them referral fees for transactions through their brokerage firms fully documented.

Wholesaling is not as glamorous as it has been made out to be, it is hard work and you need systems in order to succeed. You will not Get Rich over night and unfortunately lucky strikes do happen, but what do you do when it’s not easy anymore and the luck runs out. That’s when either you really decide to become a wholesaler or you fizzle out and find something else to do.

Now I do understand that there are a lot of would be wholesalers out there that are not doing the business properly and too them I say you that really need to read the laws in your areas, so you have a good understanding and don’t violate them. Fines and fees are bad for business and it’s much better to operate within the confines of the legal system. When wholesaling is done the right way, it provides a great service to real estate professionals and the real estate industry. I hope this has shed some light on this subject and I look forward to seeing everyone’s opinions.

Hi Justin, 

This can definitely be one of those more challenging situations. I ran into this hurdle once and it took some additional research on my part to figure it out. Here are a few things you can try that helped me check your local news paper for rentals, backpage.com, nifty nickel if there is one in your area, a local listing agent that can look up rentals on the MLS, and a property management company may also be able to offer some assistance.

Another option  you can try is to find some properties in that area, and check the tax records to see if they are owned by absentee owners. You can do this by going to your county tax records and check a number of houses in the area. Much like comps, 3 should do to help you get your average. 

After you have successfully located a number of those properties you can stop by them and ask the tenants. A couple of options are you can either role play and say that you are looking to rent a property from someone and are just checking to see if the rent is fair or you can let them know that you are looking to buy a property and wanted to see what the rents in the area are. Who knows, you may find a tenant at the same time because they could know someone looking to rent. 

I hope this helped and I wish you good luck.

Hi Neil, 

Welcome to BP and the fabulous world of Wholesaling! Your local REI club is a great resource to start. A lot of investors have already found title companies that are familiar with our style of assignments, you can also contact a number of title companies in your area and ask to speak to the sales rep they know who the investor friendly escrow officers are. Wish you best of luck.

Hi Steven, 

I agree with @Joel Owens. When you are testing too many waters it is hard for you to find what works and how it works. Pay close attention to what you are doing, create an investment journal and log in the days and hours you spend on investing. I find it helpful to have someone keep you accountable. Keeping a Journal of your actions helps you determine quickly what works and what doesn't work. If you see results whether it be negative or positive it is working. I hope this has helped. Remember the harder you work the luckier you will be.

Best Wish's 

Congratulations on taking the leap! I only buy or wholesale properties that are off market and where I am in negotiations with the seller so I understand a little about where your coming from, a little excited and nervous at the same time. A few tips to help you out are make sure you call him back! I would spend a little more time getting to know him and ask a few questions about the property, like how long he has had it for, does he have a property manager, trying to have him give some information about the property, he may say a few things that will point in the direction you are wanting. If that doesn't work ask politely about the expenses of the property and if you were to buy it is everything current because your not sure but you were looking up some details about the property and you found something. As long as its not said in a threatening manner but in more of a helpful tone and approach you should be in good shape. I would also listen to the BP pod casts they have a few on negotiations that will be very helpful to you. I hope this has helped.

Best Wishes

Welcome to BP Dustin, 

As you can see, the investor community here is one of helping each other succeed. Both @Steve Babiak and @Robert Curls have given you some great advice and once you have identified what your goal is for the property whether its fix and flip or passive income, it will make it easier for you to not only locate a property but to get started. Quick tip, you may want to start by networking with the local REI group in your area and speak to some of the investors in your area. They may know a few people that can help you with your strategy.

Best of Wishes