All Forum Posts by: Tom Jones

Is that the LOWEST cash deal in the local area for a house similar to that one? Since there is obvious work that needs to be done, when you are searching for comps, you want to look at recent transactions back 90 days, and want to go with the lowest amount. From, there, pick a couple to base your amount off of.

Also, your $50,000 offer is MUCH less than what the owner is seeking. Just because an owner states that they want $70,000 OBO, doesn't always mean they will take $50,000 or something similar. If you stick with this price, explain to the seller, the reasons for such a low offer.

If he declines, shave a little off your commission, and take a lesser one. One of the biggest things I am learning from Drew Downs is that you get rich off skinny deals.

The two sites that I have been using for comps are:
http://www.eppraisal.com/ - I use this site to find out what the home is worth. Also, if you type in an address, and scroll near the bottom, it will give you recently sold transactions near that house. However, you have to do your own due diligence to determine if the houses they show, are similar or not to the house you are about to potentially flip.

http://www.redfin.com - This site, I am also utilizing for comps in the local area. I like this site more for recent transaction, because you can specify 3 months, you can put in the square footage, lot size, bedrooms, bathrooms, etc. When you go to type in an address, be sure to click on "more options" to input better search criteria.

http://www.rentometer.com/ - This site I will be using, to determine what the rents are like for the area.

I was told yesterday from another wholesaler on facebook that end buyers will do their own due diligence, etc, but I personally like to earn what I make, and I figure, if I go above and beyond, the more they will buy from me.

Like I said, all you can do is offer what you think is right. If he doesn't agree, give him a little extra.

Thanks a lot for the information David. I am not new, new when it comes to Real Estate since I got my start in cash flows, and to me, wholesaling is the same principle, just some different steps to take into consideration really.

A friend of mine gave me the name and number of a guy who owns a title company, and someone he has known his whole life. I am calling them today to see what they got to say.

Whoever, I find in my local area, that is who I plan to bring all my business to, unless I have a buyer who is demanding to use their title company. Just trying to figure out who exactly is supposed to open up escrow, and if you pay for everything at closing (which I believe that is how I have read things).

Does your local "guru" really put up the $500, or he just say that? I would think if he just says it, but doesn't really do that, then he could open himself up to some legal issues.

From what I have heard from a few gurus who actively wholesale, that real motivated sellers, just want their property sold, and don't worry to much over earnest deposit. They just want you to buy!

If I had to do one, I probably would just do $10 and no more than that. Whether or not, I know I already have a buyer in mind.

I think for the first 1 to 3 deals, I will require a deposit, and depending on the how relationship builds, wouldn't require one from the same buyer on the rest. Like you said, just have to see.

I forgot, one last question.

What happens if the end buyer, seller, or I, or all 3 are unable to make it to the closing table for any reason at all. How does the closing happen then? I have heard different versions about this, and would like to make it clear, so if I am asked, I can answer.

I currently have a few questions regarding wholesaling properties. Any help, advice, etc would be appreciated.

1. I understand how to determine what to offer a potential seller for their property (ARV x X% - repair) - your wholesale fee. Now obviously the figure I come up with after computing the (ARV x X% - repair) is what I offer to the seller. However, what I would like to know, is when I put the property up for sale once under contract, do I include my assignment fee in the sales price, or just simply tell the buyer what my assignment fee? What works best for you?

2. What works best for you when estimating the repairs needed on a home? Luckily for me, I have a friend who is a construction contractor and has already agreed to do estimates for me if and when I need them, and I can settle up with him once I sell the property. However, I am curious to see what other wholesalers do.

3. One of the main things I have not found yet, but currently working towards is finding an investor friendly title company. What questions should I ask them, or how should I approach them to determine if they would be good to do business with?

4. Regarding making an earnest deposit on a property I am wholesaling, I have read and heard a few wholesalers that say they always do this, and I have heard some say that they never do an earnest deposit. Can anyone confirm which is it? For the ones that I have heard that do an earnest deposit, they say they do between $1 to $100 and never more than that. However, what sense would it make to do a $1 deposit at a title/escrow company?

5. When it comes time to go to escrow once I have an end buyer, who opens up the title/escrow account? Is it me, or the end buyer? Also, what cost is involved to open it, or is everything paid at the end?

6. Just about every wholesaler that I have been reading, have all stated that they make their end buyers put up a non refundable earnest deposit when buying a property from them. Now, this does make sense, and not a bad idea, to ensure the buyer won't back out, and if he does, you get to keep the earnest deposit. However, the question is, what is the normal amount to request, or just it depend?

I believe that is all. I do apologize for the MILLION questions, but I didn't want to flood the forum with multiple threads. Again, thanks to anyone in advance who can shed some light onto all of this for me!