Wholesaling Costs
I have a couple of questions about the actual cost of flipping properties. I'm just starting out in my real estate career. I've been doing my homework with books, courses, and networking. I'm a member of the local branch or REIA, and I think it's time for me to stop stalling and jump in with wholesaling. Wholesaling should involve none of my own money if I have some cash buyers lined up, but I wonder about the true costs. Should I have an appraisal done once I've tied the property up? What about a title search? I have the money to do these things, but I know even if I have a purchase offer, the deal doesn't always go through, and as I'm just starting out, that money adds up fast if deals aren't going through. Even with all the infomation I've aquired, these are murky waters for me because I haven't done a deal yet. I don't want to come off as a complete novice when working with my buyers. What's the best course of action here? (And, yes, I have started talking with sellers. I actually am meeting with two sellers this weekend--one who might want to sell me multiple properties wholesale--eep!)
jump in see what your buying see if its worth keeping or passing along to another investor. keep in mind that if your not going to buy why spend money on appr,or title search, sounds like you want to birdog propertys, if your not going to step in with both feet.
Hello, If you have a good buyers list already set up you should not have a big problem flipping your contracts if you buy for wholesale prices.If you know you got a real good deal and want to flip fast you should get a appraisal and title search,your buyers will take it quicker.But to save cash when wholesaling you can just get comps to show your buyers but should get title search so you don't waste all your time then the title isn't clear.Hope this helps a little.
Thanks fo rthe replies. I do have a good buyers list set up. I was just trying to get some ideas on how other wholesalers handle the title search and appraisal.
To save money on title searches, call a few title companies and take one of the searchers to lunch. Explain to them what you do, and there is a lot of potential closings for them if they will work with you. After a couple of closings, you should be able to call them up and ask them to check/ and or search for you at no cost or won't charge you until closing. This business is about building positive relationships............
Prosperous investing,
td
Does anyone know if that works with lawyers? Here in NC lawyers do the closing, not title companies.
nbedell - it can work with lawyers too...just that lunch will cost more