Question for John Locke and Scott Rister
I'm just getting started in real estate investing and trying to wholesale a few properties to build up cash reserves as I have very little money to begin my investing career. I had a fixer under contract that I could not move but luckily I was able to get out of it by using the "repairs not to exceed..." contingency clause I had put in the contract. I'm in a hot market in Asheville, North Carolina where the average home goes for above 200K and there is tons of competition from the numerous investors here. What I have found is that the rehab investors here tend to have an "all for me, nothing for you" attitude with regard to investors that want to wholesale properties to them. Unless you can tie a property up for a ridiculously low price there is not much potential to make money wholesaling to them. I have begun to concentrate on nicer properties in decent areas where properties move relatively fast. If I can tie one up for 75-80% of their current market value I can probably sell to a retail buyer fairly quickly if it is priced below market value and/or I sell on favorable terms like providing some seller financing. I know that if I'm concentrating on nicer houses "subject to" is a method I should be using but I know very little about it. I know there is great profit potential with subject to down the line, but I need to build up my cash reserves first by wholesaling. John, does your subject to course cover the concept of wholesaling a property you have tied up subject to? Is wholesaling even possible with the properties that are typically able to be tied up subject to? Scott, does your wholesaling course cover the concept of wholesaling a property you have tied up subject to? What contingency clauses do both of you use to give yourself an out if you can't locate a buyer? I appreciate any input either of you can provide.
Brennan Kopp
bkopp66,
Glad to meet you.
My course does not specifically cover wholesaling properties. However it does cover finding properties, which is the critical part in becoming involved in creative real estate investing.
If you wanted to wholesale these propeties then it would not be difficult do, however you might find some that you would rather do a Subject To deal and keep for your self. I belive my course would offer you the flexibility to do either method. Of course Subject To will give you a greater monetary return than wholesaling.
I have a web site devoted to those that make the investment in my course, you will find the new person there along with some of the most knowledgeable investors in the real estate industry to answer questions and share with one another.
Let's not forget for one moment that right here on TCI there a many posters that are willing to help you succeed in real estate investing, some of the courses you purchase here are teaching methodology, this way you will have an understanding and method to follow to become successful.
Welcome on board this board, keep asking your questions and you will get the answers you need to help you.
John $Cash$ Locke