Any wholesaling tips ?!

[Alric Burke]

Hi All, 

 I want to stop spending a lot of time studying on Real Estate Investing and actually apply the knowledge. Of course I want to take baby steps and start with Wholesaling. Does anyone have any tips? Maybe we can sit down sometime 

[Abdul Rasheed]

Nick,

You said: "As for forming my llc once I get paid, this is something I still do to this day on every deal I flip."

We are talking about "123 Main St LLC" here? But once you get paid the closing is complete and the deal is done, so it is a bit late? Or are we talking about the earnest money deposit money from your buyer? I did not understand this completely. Can you or someone help?

Btw, great tips on this forum. I am going through all the posts from the past to iron out gems! I never got to attend any of the seminars/workshops on wholesaling. Also, If any of you attended those and have notes to share with me I will greatly appreciate it.

Thanks,

Abdul

Nick Tang said:

The business of wholesaling is to lock up good deals and sell them to cash buyers for quick cash.  The business model revolves around speed (selling properties to cash buyers) and minimum to no money out of pocket (because wholesalers usually don't have the luxury of money to lose).

 

This being the case, I never shell out any money other than my earnest money to lock up deals to flip.  When i need to verify if there is an oil tank, liens, repairs or other issues that need to be resolve to the house, I tell my buyers to do all this and make the investment to figure it out.  The reason why is because even if i did get it done, they are going want their own expert opinion on it.  Second, as buyers spend money on a deal they become more vested in buying and that’s exactly what I want them to do. In the end, if I do end up in a position where I have to renegotiate my deal because my buyers offer is to low, I will then use the material that my end buyer paid for to rework the numbers with my seller and the deal is done.

 

As for forming my llc once I get paid, this is something I still do to this day on every deal I flip.

[Alric Burke]

That is a really good point Nick, Thanks! 

[Tiffany D Anderson]

Thanks, Nick! This group is so valuable. Tomorrow, I'll ask you more about the materials & what you do with the llc once the flip is done. Do you dissolve it? Or let it stand? 

See you tomorrow.

[Tiffany D Anderson]

Good stuff Wakal. But why do you need a home inspector for wholesaling? Unless you're talking about the other strategies. I'm suffering from a bit of inertia & hesitating to jump in this pool - but fighting it all the same.

I found 10 properties I'll be making offers on - just trying to get my ducks in a row. Gotta get a contract & interview some good attorneys. 

Has anyone ever done a deal first and then get incorporated with the fee they received?

WAKAL REYES said:

 

 

  HELLO, WHOLESALING  IS A GREAT WAY TO START IN REAL ESTATE, BECAUSE YOU CAN DO IT, WITHOUT CREDIT AND LITTLE MONEY.

 1.- ONE THE BEST WAY TO START IS WORKING WITH AN REAL ESTATE AGENT  THAT CAN LOOK FOR PROPERTIES IN THE MSL.

      CAN BE FROM EXPIRED LISTING, TO REO, SHORT-SALE, FORECLOSURE.

2.-  YOU CAN WHOLESALER ANY PROPERTIES FROM LUXURY PROPERTIES TO SPECIAL HANDYMAN, TLC.

3.- WHEN YOU REAL ESTATE AGENT FIND THE PROPERTY YOU HAVE RUN THE NUMBER

     EXAMPLE FIXER UPPER       1.- ARV, AFTER REPAIR VALUE..............................................$200.000

                                             2.- RePAIR COST.............................................................,$  30.000

                                             3.- PURCHASE PRICE............................................................ 80.000

                                             4.-  CLOSING COST.,............................................................

                                             6.-   HOLDING COST............................................................

 

4.- BEFORE TO BUY ANY PROPERTIES YOU HAVE TO HAVE YOUR PLAN

 

     A.- PLAN FLIP THIS PROPERTY TO REAL ESTATE INVESTOR

     B.-  REHAB THIS PROPERTY.

     C.-  RENT TO HOLD

 

5.-   YOU HAVE TO HAVE YOUR CASH BUYER IN PLACE, OTHER WHOLESALER, BIRG DOG,  SO YOU GO TO GOOGLE, YELLOW PAGE, CRAIGLIST, LOOKING FOR WE BUY HOUSES, REAL ESTATE INVESTOR LOOKING FOR HOUSES,

6.-    HAVE TITLE FRIENDLY COMPANY IN PLACE.

7.-    HAVE A GREAT REAL ESTATE LAWYER.

8.-   CPA.

9.-   HOME INSPECTOR.

10.-  BE WILLING TO WORK WHEN OTHER ARE SLEEPING IN A ROCKING CHAIR

11.- YOU HAVE TO HAVE A REAL ESTATE AGENT THAT CAN MAKE ANY OFFER WITHOUT TO BE AFRAID 65 70 % OR LESS DISCOUNT PRICE, BECAUSE THERE HAVE TO BE ENOUGH ROOM FOR YOUR PROFIT, THE NEXT INVESTOR PLUS ALL THE FEE, I WISH THE BEST AND I M WILLING TO RUN THE NUMER AND SUBMIT  ANY OFFER FOR YOU, JUST EMAIL ME AT [e-mail],

 

 

    

                 

                                       

         

 

 

 

 

 

 

[WAKAL REYES]

 

 

  HELLO, WHOLESALING  IS A GREAT WAY TO START IN REAL ESTATE, BECAUSE YOU CAN DO IT, WITHOUT CREDIT AND LITTLE MONEY.

 1.- ONE THE BEST WAY TO START IS WORKING WITH AN REAL ESTATE AGENT  THAT CAN LOOK FOR PROPERTIES IN THE MSL.

      CAN BE FROM EXPIRED LISTING, TO REO, SHORT-SALE, FORECLOSURE.

2.-  YOU CAN WHOLESALER ANY PROPERTIES FROM LUXURY PROPERTIES TO SPECIAL HANDYMAN, TLC.

3.- WHEN YOU REAL ESTATE AGENT FIND THE PROPERTY YOU HAVE RUN THE NUMBER

     EXAMPLE FIXER UPPER       1.- ARV, AFTER REPAIR VALUE..............................................$200.000

                                             2.- RePAIR COST.............................................................,$  30.000

                                             3.- PURCHASE PRICE............................................................ 80.000

                                             4.-  CLOSING COST.,............................................................

                                             6.-   HOLDING COST............................................................

 

4.- BEFORE TO BUY ANY PROPERTIES YOU HAVE TO HAVE YOUR PLAN

 

     A.- PLAN FLIP THIS PROPERTY TO REAL ESTATE INVESTOR

     B.-  REHAB THIS PROPERTY.

     C.-  RENT TO HOLD

 

5.-   YOU HAVE TO HAVE YOUR CASH BUYER IN PLACE, OTHER WHOLESALER, BIRG DOG,  SO YOU GO TO GOOGLE, YELLOW PAGE, CRAIGLIST, LOOKING FOR WE BUY HOUSES, REAL ESTATE INVESTOR LOOKING FOR HOUSES,

6.-    HAVE TITLE FRIENDLY COMPANY IN PLACE.

7.-    HAVE A GREAT REAL ESTATE LAWYER.

8.-   CPA.

9.-   HOME INSPECTOR.

10.-  BE WILLING TO WORK WHEN OTHER ARE SLEEPING IN A ROCKING CHAIR

11.- YOU HAVE TO HAVE A REAL ESTATE AGENT THAT CAN MAKE ANY OFFER WITHOUT TO BE AFRAID 65 70 % OR LESS DISCOUNT PRICE, BECAUSE THERE HAVE TO BE ENOUGH ROOM FOR YOUR PROFIT, THE NEXT INVESTOR PLUS ALL THE FEE, I WISH THE BEST AND I M WILLING TO RUN THE NUMER AND SUBMIT  ANY OFFER FOR YOU, JUST EMAIL ME AT [e-mail],

 

 

    

                 

                                       

         

 

 

 

 

 

 

[Alric Burke]

Great, I'll see you all there. 

[al]

Before you go off the deep end, let's get some clarification. Exactly what does "gathers all the info possible without making promises"? Then he goes to investors? What is he telling them? There "might" be a house for sale, it has the following, and then-that's it?

Does he prepare a scope of work and estimate of repairs? Does he agree on a price? Is it just the home description or does he get all the mortgage and loan info? Does he get the reason for selling? What the homeowner is going to do when they leave this house? Where they're going and how they're getting there?

This is all pertinent if you want to be able to negotiate the LMOA on a property. How is the offer being made when there are no comps?

As a well known door knocker, there's a lot more than knock, knock, "are you looking to sell your home?" There are better ways that give so much more information with so much less effort.

[Tiffany D Anderson]

I'm in the same boat as you, Alric. I'm going to do a practice run on a local property this week before jumping in by next week. If you're at the NYC meeting on Wednesday, I'll look for you.

[0eufobios9x0d]

By all means do both! My mentor taught me to "GO IN ALL DIRECTIONS AT ONCE" when trying to achieve a goal.

[Alric Burke]

Thanks, that's very insightful.So far, What I've been doing is just networking and telling everyone I meet what I do. But your friends approach might be a better approach.