All Forum Posts by: Valerie K.

Hi there! I realize this is an old thread, but if you find a deal you are interested in through a wholesaler, is it up to them to supply references from previous deals? I am eager and yet uncomfortable of the idea of depositing large amounts of cash for deals to someone I have not really vetted or who was personally referred to me.

I need to learn how these deals happen. I can educate myself on finding a good deal, but how is the escrow handled when the wholesaler takes your cash with the intention of buying the house they put the bid on? 

Any help for this newbie is much appreciated!!

Regards!

I agree Courtney M- financial security in an ever-changing world economy and a hedge for my kids' futures is my motivation.  And we hope in the end our efforts and success also revitalize a neighborhood, give someone a good place to live at a fair market price and allows us to be generous outside of real estate.

@David Smit- the beauty of capitalism is that it isn’t a zero sum game. Whether you own 2 or 2,000- your ownership has not in any way denied another of their opportunity to do the same. It seems that in your heart your real concern is unequal outcome. Unless you want socialism and wealth redistribution, keep working hard and let others do the same. Maybe someone else doesn’t have the means to get the ball rolling? How to fix that I don’t know- lots of people have made a fortune with grit, resolve and little else. You can’t force people to dig deep and use those, nor should you apologize if you are successful. As long as you aren’t directly preventing someone else from having a chance, I don’t see the problem.

Hello all! 

My name is Valerie Kester and while I have bought and sold several personal residences (including landlording)  I am brand new to the investing side of real estate.  I have close friends who have invested in wholesale multi-family properties in Bakersfield with much success and am interested in doing the same.   I would consider other markets with equal opportunities. Moreover, I would be interested in flipping homes and see markets like Pittsburgh, Columbus and others with a lot of activity.  

I have been reading, listening to podcasts and more but have yet to find a post that walks through the basics of the wholesale process as a buyer.  We have cash available to make purchases, but I am trying to understand the process. We find a wholesaler who finds us a property- we run the numbers using every resource we have and decide to buy it.  The wholesaler sells us the contract.  We then assume the rehab and resale of the property.  We pay cash to the wholesaler? How does that go? My primary concern is that we are not handing large sums of cash to someone who, despite great referrals, runs abroad with our money.  Once we 'assume the contract', how does that compare to a typical escrow?  We have always dealt with realtors, appraiser, insurance, title companies and big banks. I am little leary cashing investments and using home equity without better understanding where the money is going and how we are protected.

If anyone can recommend a good resource to better educate myself on this, I would really appreciate it!
Valerie