All Forum Posts by: Yoann Dorat

@Justin Glatz 2 possible answers to that: It's either a wholesaler, limited to cash buyers or pre-approved HML because of the short window to flip the contract. Or it's a turnkey provider trying to sell over retail and he knows the property won't appraise at this price.

Hey Nigel, being a foreign investor is a problem with conventional lenders but it shouldn't be an issue for any asset-based lenders like PML and HML.

I might have a PML willing to do that for you, shoot me a DM and let's talk. 

@Del Davis you want to look into "virtual wholesaling" there's a lot of content about it on youtube. 

The basics are: From the comfort of your home you cold call, build rapport, and lock deals over the phone. 

Then you have 2 options: you can either pay someone out of FB REI groups or Craigslist to go there and take pictures for you (cost about $50 to $75) or even better you do a JV with a local wholesaler who will act as your boots on the ground, he'll take the picture and find a buyer for a split of the assignment.

The benefits are: You can stay at home and you don't need a car, The main drawback is: Not everyone is built to close deals over the phone, it takes a very specific skillset and mindset. 

@Richardd Barran Looks like you got yourself a great deal, congrats! 

With the information you provided, my advice would be to wholesale it, your end buyer will see the value of the +2300sqft and i believe you can make a nice spread, then roll up your profit in another deal with less complexity. 

My advice would have been different if you already had several deals under your belt, but as a new investor, you don't want to mess with the complexity of large-scale rehab.

Take the money that's on the table now, and find a deal that only requires small cosmetic touch-up. 

Enjoy the journey ;) 

@Chris Sabanos how are you planning to fund the deal if your offer is accepted? Wholesalers will only work with cash buyers or someone with PML / HML lined up.

The first step would be to call and schedule a walkthrough (do not buy based on pictures), then if you like what you see, present an offer. 

Second step, if your offer is approved the Wholesaler is going to draft and send over an Assignment of purchase agreement, ask for a copy of the original PA (mandatory) and send both documents to your attorney to review it. If it's a deal make sure the Atty doesn't take too long to give you his feedback, the wholesaler is constrained by time and will move on to the next buyer in line if you don't make a decision fast enough. 

Third step If you agree with the terms and sign the Assignment, you will typically have 12 to 24h to wire an EMD to the title company/closing attorney, and you will be required to close on escrow within 10 to 15 days.

Read the terms of your assignment as they may vary from a wholesaler to one another, but this is the basic blueprint most of them are following. 

@Evan Kraljic @Ramandeep Sidhu ideally every wholesaler should get licensed as it is the easiest way to get paid on referrals + the way wholesaling is advertised, regulations are going to kick in at some point and they won't have a choice, so better be prepared than being surprised. 

But for the ones who are not licensed yet, there are still ways to be paid for those "retail leads", you just have to sell them outright with a flat price per lead, it becomes a marketing service and is not considered as a referral since you're not sharing/splitting a commission.  

It's perfectly legal otherwise all the lead providers & marketing companies out there would need to get licensed. 

Nice spread, congrats @Ben S.!

@Destiny Dunbar I like the idea of doing a survey on wholesaling, unfortunately, I don't think you're going to find a positive outcome on BP.

I think all businesses even non-real-estate-related need to have a core focus on either Quality, Price, or Convenience. In my company, we focus on Convenience. I strongly believe the industry is changing and sellers expect to receive more support and options. Agents and wholesalers alike try to fit every homeowner in a box, but truthfully you should always come to an appointment with 3 options, a cash offer, a listing agreement and a seller financing/subto. Every homeowner situation is different and a listing might not always be the best option, just as a cash offer is not always the best option. There's no such thing as a bad option/good option in real estate. I think every wholesaler should get licensed to be able to serve a broader audience. And every Agent should be open-minded and study wholesaling instead of bashing it. 

On the bad side, Wholesaling is a frankly new industry and falsely advertised by gurus as "easy money", most wholesalers are 1man show and work on a deal by deal basis with no structure and without building any long term relationships, part of our focus on convenience is translated by our transaction coordinator, transparency and weekly updates until closing, we provide moving/relocation services, lenders, credit repairs and insurance referrals. 

I think wholesaling is a necessary piece of the puzzle, even though it needs more regulations. And close-minded agents who are not willing to adapt are going to be weeded out. 

@Will Schafer if you're already doing outbound marketing (Direct mail & cold calling) you might want to balance your marketing with some inbound leads (facebook ads, adwords etc). If you have the budget TV ads and radio works well too. 

@Anthony Villasenor there's not enough meat on the bone for a lender, a general rule of thumb: if the ARV is less than 100k, flip it. if more than 100k, hold on to it.
On this kind of property, the tenant turnover and maintenance will swallow most of your cash flow. 

You can probably make a spread of 15-20k if you flip it.