Is Wholesaling Really This Easy??
From my understanding of wholesaling basically you : Locate a propety for sale...Contact owner...if the numbers are right...Get the house under contract...Find a buyer...Assign the contract...Collect the check....Am i taking the wholesaling process to lightly. Is it more than meets the eye?.....I have 3 different contracts to use, i have located about 15 houses that look like they have alot of potential....For some reason i cant get started on my first deal. maybe cuz its my first time. Who knows? Can anyone help me out here? Any words of encouragement. <IMG SRC="images/forum/smilies/icon_confused.gif"> [ Edited by bacardidark313 on Date 01/24/2004 ]
I would suggest you find potential buyers BEFORE you sign the contract. They can help you read the numbers and let you know what their requirements are.
IMO many times when looking at a deal quickly it looks VERY good. Then with a closer look and going through the numbers what seemed to have alot of profit potential really has little if any.
Thanks for the insight Crowler
There are different types of wholesaling. I buy houses cheap with cash, fix them up , then sell them to people who want to use them as owner-occupied. This type has worked for me for 9 years. My friend buys them cheap and assigns them to rehabbers, this works for him. You need to find out which side you want to do. But when I close on a house I have at LEAST 15 qualified buyers waiting in line to buy the house once it has been fixed. This process is only smooth because I have ironed out the problems in the last 16 years. This didn't happen over night. You need to work out a business plan anf stick to it to complete your goal. It may get rocky at times but you will learn through each transaction. Fortunately, I was able to learn by my mistakes and other people's because of the business that I am in. I have done up to 28 deals in one month that was my record last year. I hope to beat it this year.
[addsig]
Hey tinman...
How do you locate properties? What works best for you? Just curious as a novice to wholesaling myself. I haven't decided either what side of wholesaling I like to pursue. I am leaning toward assignments first, then doing rehabs.
Thanks!!
Chris G
Hello,
I have a question about assigning. Does the person find the property, negogiate terms and then make a offer, only to sign the contract over. I dont know why they dont cut the middle man out and how does the middle man profit? Are they fixing the properties up before they sign the contract over?
To sharp rei pa
I find my properties on www.foreclosure.com
lori
I do my own ads to sell and I qualify the buyers myself. I can't do the mortgage because it is a conflict of interest. My home improvement company does all the work. So I got everything on a tight rein.
lori
[addsig]
My experience has been with assignments to other investor/buyers. I have found that the deal will sell itself if it's good (Otherwise there will not be enough spread to collect my profit). So when I have a house under contract, not only to do I have a list of pre-qualifies buyers (run an 'attention investor' ad in the paper) I also advertise the investment property itself. Remember to make sure you are meeting the other investor/buyers needs on what they need to make.
Hope this helps!~
Thanks for the replies. Really appreciate it.
Bacardi:
You need to first educate yourself in Real-Estate. You need to establish a playing field that you will work in.
Wholesaling is a pretty lucrative business once you educate yourself and
know the different markets. The key is to leave a minimal profit of 10k in it for the
person you are "wholesaling" the property to. You can only skin a cat once!
Typically, there should be a minimum split of 30k between what you have purchased the property for and what the property is worth. This is by California standards.
Read the article titled "Driving For Dollars". This should steer you in the
right direction.
Best Riches,
Jeffrey Adam[ Edited by JeffreyAdam on Date 01/28/2004 ]
Thanks for the replies...keep em coming!
Basically what a flipper does is assigns his contract to a rehabber,and collects his profit at the closing.Flippers can also rehab the house and sell to a retail buyer.You may also want to consider doing lease/options.Learn different areas and what works in your area of the country. But it only works if you work it!!!
How do you find the rehaber? How do you find someone who will take on the responsibility of rehabing and retailing?
Have any of you had a rehaber steal the deal from you and leave you out completely? Next month I am going to join the local REIA and maybe I can find investors/rehabers there.
A cheap way to find rehabbers;;
I see that you are joining your local REI club next month. PERFECT. This is a perfect place to find QUALIFIED buyers.
Make up a simple "investor quote form" on your computer. It doesn't have to be anything fancy, you simply want to ask on this form what types of properties, what areas, and what the investors ability to close is. Print up an unlimited amount of these forms and pass them out at the beginning of the meeting, ask that they fill them out during the meeting, and return them after. You should have more than enough to start with.
The next day or so, call ALL of them back, thank them for their cooperation and go into a little more detail about what they're looking for and their ability to buy quickly. There's a lot of competition out there for wholesalers, so I have found ( in my limited experience ) that it is imperitive to separate yourself from the pack with professionalism, courtesy, dilligence, and close attention to detail.
Remember YOU"VE STARTED A BUSINESS, SO TREAT IT LIKE ONE!!!!
Hope this helps
Chris1220
Caseycat,
You've sad: "How do you find the rehaber?"
Known and Unknown Real Estate gurus got busy more then decade ago, continuously flooding market with courses on how to become a RE millionaire in year, two or less so if you open any newspaper, you will find one or more ads that sounds like this: "We buy houses", "Cash for houses. Any condition" . Call those ads and ask the guys who placed them what kind of property are they buying. Take the notes and their contact down so the next time you have a deal, you'll know who to call.
Hey,
Omega1 is 100% correct; the ads in the paper (that run week in and week out) are people who are successful. Newspaper ads (at least in my area) are way too expensive to run, unless you are getting results.
BUT if you want to have some fun, start calling the Bandit Signs you see. Especially the ones that are just outside the path of the mower or the ones high up on telephone poles (these are the ones that are difficult to remove).
Thanks for the responses...Keep em coming
Where could I get a sample contract or an original with the correct wording etc.
for flipping transferring property to another party? All of your questions / answers have been a great help to me so far. Thanks
keep em comin