All Forum Posts by: Tommy Adeoye

@Tony Escobedo . If you have been wholesaling for a while you may want to talk to a hard money or private money lender.

It can be a pain acquiring a hard proof of funds i.e Bank statement, HELOC etc.

However, what you will receive from a HML or PML is a soft proof of funds i.e a letter stating they will be financing your deal, even so the letter usually holds some kind of caveat/contingency.

In its entirety , proof of funds just shows some of kind of credibility. Usually when I offer a high earnest money- if the deal has some meat in the bone, and build some kind of rapport with the agent/seller, they would go work with the soft POF.

@Pedro M. . Don't beat yourself up and do not spend too much time over analyzing either. Keep in mind the title company will need to keep the lights on and stay in business as well.

Two key factors in real estate are numbers and relationships. 

With that being said, gather a list title companies in your area, call them one after the other, and shoot straight - " I wholesale real estate and I am looking for a title company to work with. Do you work with investor wholesalers ?"  Yes - then you have one , vet them. No - Move on to the next one.

Alternatively, you could also connect with wholesalers in your area that are on biggerpockets and have them refer you to the title company they work with. This is quicker.

Either ways , you are better off moving in doubt than not to move at all. Best of luck.

@Sean Dougherty I hold a different perspective . I have come across folks-Investors who have been highly successful wholesaling properties from the MLS.

However, you have got to make sure it satisfies few criteria, like whether or not  it is a fixer upper, agent is able to dual up. 

I say if you are able to negotiate amidst a bidding war, put the deal under contract , If you run numbers correctly and leave enough room to squeeze in your fee, you will be good to go. You've just got to make sure you close fast. Once the deal is under contract/pending, you would have fended off other potential buyers. It would be pointless for anyone at this point to reach out to the agent.  

If you pre-qualify your buyers on your list correctly, they would not care if you got it off the MLS.

I mean the goal is to lock the contract up less than asking and make sure all the variables make the deal a great one.

There are creative strategies out there, I think one worth exploring for this particular scenario is the "subject to " . You can do a subject to and keep the property for yourself. You may need a little hand holding on this one if you want to assign the contract on this one.

Hey. I think it may work as a flip as well;

I think 10% - 15% seems to be industry standard for acquisition and disposition managers .  

Congratulations @Dylan Benton . I love it, Great job. Now unto the next.

Throw some of that profit in some REI books- invest in yourself , immerse yourself. You will do great things.

Kudos again.

Driving for dollars, door knocking and relationships get you wholesaling deals in California. 

However, here is what I am thinking I'll rather flip or BRRRR(if the numbers make sense in California) than wholesale. That appreciation $$$ is so juicy even an HML would jump at the slightest opportunity.

Overall, Wholesaling will require twice the work in Cali than the Midwest. 

Welcome to the land of milk and honey because your consistency, persistence and resilience makes it so.

Looks like you have got enough time in your hands. If that is the case, try to look for a wholesaler on here that is in your area and message them, let them know how you intend to trade your valuable time. Simply ask “ What are you focusing on this days to grow your wholesale business, I have lots of time (sell the s***t out of yourself) ....

You can offer to market for them , then learn the acquisition and disposition part of the business.

Dedicate three months to immerse yourself in process, once you have mastered the sweet science of wholesaling then branch out on your own .

Alternatively, you could read some articles, forum posts on bigger pockets, Podcasts and YT videos then set the ball rolling. You may loose lots of money going this route and puffing solid leads and this can be regarded as “Tuition” of learning by doing.

OR just do it , hit road block, research , ask questions, resolve, repeat.

Either ways, don’t spend too much time thinking about it. Just jump right at it if you feel a pull but stay educated. 

@Michael Grigorashenko 

In addition to @Jon Robinson 's response.  Another area to look into is

- The mortgage due-on-sale clauses : The lender for whatever reason , usually includes a "due on sale" clause  in the lending contract which simply ensures that they (the lenders) are paid off when the properties underlying those mortgages are sold or transferred . Lender may accelerate the mortgage and demand repayment. You want to make sure that is not included in the seller's contract prior to executing the contract for deed. 

Don't let that deter you. You are always one creative finance option away.

At this point you find an investor (a.k.a. cash buyer) that would love to purchase the contract rights for this great deal.

You will assign this contract over to the investor for a wholesale fee. In other words, the investor is technically paying you a fee to buy you out of the deal.

The investor closes on the property and you receive your wholesale fee.

Go over the Assignment contract . You may find these fields:

1.) Subject property : Full address of the property you are wholesaling.

2.) Assignor :- Your/Your company name

3.) Assignee :- Your cash buyer/Investor credentials

A few other blanks in between but should not be difficult to figure out.

There should be a part that says :

Assignee shall pay Assignor an assignment fee of $ INSERT YOUR FEE HERE.

Keep in mind , you want to provide value to your buyer. With that being said, make sure you do your due diligence and put together a property Information package which would include but not limited to comparable, approximate repair cost, ARV , video and recent photos of subject property (if possible), buy and hold analysis, flip analysis. You want your numbers to make sense to ensure a quick close.

Your property information package should also show ( Price of Property + Wholesale fee) , you don’t have to show the wholesale fee . Lets say the deal works for both parties on the PIP, then send the assignment contract to the buyer.

Does this help?