Wholesaling Techniques For A Newbie!
Hello all,
Boy am I glad I found this website … these forums are chock full of useful information. I have been long interested in wholesaling techniques … being in the Orlando Fl area which is a very hot real-estate market. Though I’ve studied for some time on the subject I’ve yet to start. I was wondering if you seasoned investors might give a few pointers that would set me on my way. I’ve decided I want to wholesale at first then move into retailing and ultimately new construction here in Orlando … though that’s a long term goal. I know I need to just get out there and start making offers I think I’ve got that part down … it’s the specifics that have me perpetually studying. Do I need to pay for an appraisal in order to successfully wholesale a property? Or should I just inspect and have the prospective investors ride by and examine the property? Should I avoid a down payment and/or say they will receive it once my “partner/investor” examines the property? I know these are fairly simple questions but they’ve stopped me in my tracks. My partner and I are ready to get this ball rolling … any and all help from you is much appreciated. 
Thanks,
Josh
[ Edited by macrocosim144 on Date 09/24/2003 ]
Could I Suggest that you look into Bird-dogging? It's a great way for you to get your feet wet without committing yourself to anything you are not sure of. This may be an alternative that would help you get over the jitters. It will also get you looking for the properties that other investors want to buy, and it gets you paid, and you might find a good mentor in the process. You will be surprised how quickly you will learn, and how quickly your confidence will emerge.
Good Luck,
Jeff
[ Edited by jeff12002 on Date 09/27/2003 ][ Edited by jeff12002 on Date 09/27/2003 ]
I wouldn’t say I have the gitters or a lack of confidence. It was more a matter of the specifics. Though I feel I’ve found my answers here in this forum. A thousand thank yous to all of you for the wealth of information in this site. A mentor will be wonderful when that opportunity presents itself, though I cannot imagine bird dogging and passing my good leads away to someone else for the sake of it. In fact I have my own bird dogs at this point. As for the properties I will be placing them under contract myself then wholesaling them. I thank you for the suggestion and response; it would seem from the past posts that I asked questions that have been asked several times. I’ll be sure to return here to share my experiences.
Thanks again,
Josh
OK, I apologize for misinterpreting your first post, though I stand by the suggestion as it is a good idea for anyone just starting out. You don't just give your leads away, you get paid for finding the houses, pre-screening the sellers- and setting the appointment. That is worth much more than just a couple of bucks to an investor. But Hey! If you don't want to go there, good for you.
With respect to your question about paying for an appraisal, there are other ways to get good numbers on properties. More than one course that I've read talk about estiimating repair costs yourself. (It's never an exact science, It's more of an educated estimate) If you are able to establish the ARV (also an educated estimate) on the property, multiply by 7/10, and subtract the repairs, 6 months worth of holding costs etc., and your profit, and you know the maximum to pay. You can use recent sales figgures in the neighborhood to get a good idea what the property will be worth when it's renovated etc. But if you've been studying for a while, this is no new revelation to you. You know what to do. Just go out there and make it happen.
Best of luck to you and your partner,
Jeff
No need to apologize … I thank you for your response, and the good advice. I guess I just needed a little nudge. Starting Monday we are going for it.
Thanks again,
Josh
As far as bird-dogging goes...true, you MAY pass up a few more buck$...but, you could ask the guy you're bird-doggin' for to let you know what he is looking for...price, type of house, location, etc.
Maybe even show you how it's done. (Probable unlikely, he might be one of those that might classify you as competition). That info, my friend, could be priceless...ALOT more than what you would've got compared to a few thou$and.
Then again, you sound as if you don't need them to tell you how to structure deals....maybe, maybe not.
I forgot what all you asked in your initial post...for I cannot see it as I type this...shucks....
I'll check back.
Later
Quote:
On 2003-09-24 14:54, macrocosim144 wrote:
Hello all,
Boy am I glad I found this website … these forums are chock full of useful information. I have been long interested in wholesaling techniques … being in the Orlando Fl area which is a very hot real-estate market. Though I’ve studied for some time on the subject I’ve yet to start. I was wondering if you seasoned investors might give a few pointers that would set me on my way. I’ve decided I want to wholesale at first then move into retailing and ultimately new construction here in Orlando … though that’s a long term goal. I know I need to just get out there and start making offers I think I’ve got that part down … it’s the specifics that have me perpetually studying. Do I need to pay for an appraisal in order to successfully wholesale a property? Or should I just inspect and have the prospective investors ride by and examine the property? Should I avoid a down payment and/or say they will receive it once my “partner/investor” examines the property? I know these are fairly simple questions but they’ve stopped me in my tracks. My partner and I are ready to get this ball rolling … any and all help from you is much appreciated. <IMG SRC="images/forum/smilies/icon_biggrin.gif">
Thanks,
Josh
Hello Josh
<font size=-1>[ Edited by macrocosim144 on Date 09/24/2003 ]</font>
Quote:Hello. I apologize. I'm not familiar with writing these "posts". I wrote in the wrong area. My "reply " to Josh's "post" is in the same area/body of his "post". Please bear with me. Can somebody write me, and let me know how to do this? Thanks, Kathleen (EstherConnection)
On 2003-10-02 20:08, EstherConnection wrote: Quote:
On 2003-09-24 14:54, macrocosim144 wrote:
Hello all,
Boy am I glad I found this website … these forums are chock full of useful information. I have been long interested in wholesaling techniques … being in the Orlando Fl area which is a very hot real-estate market. Though I’ve studied for some time on the subject I’ve yet to start. I was wondering if you seasoned investors might give a few pointers that would set me on my way. I’ve decided I want to wholesale at first then move into retailing and ultimately new construction here in Orlando … though that’s a long term goal. I know I need to just get out there and start making offers I think I’ve got that part down … it’s the specifics that have me perpetually studying. Do I need to pay for an appraisal in order to successfully wholesale a property? Or should I just inspect and have the prospective investors ride by and examine the property? Should I avoid a down payment and/or say they will receive it once my “partner/investor” examines the property? I know these are fairly simple questions but they’ve stopped me in my tracks. My partner and I are ready to get this ball rolling … any and all help from you is much appreciated. <IMG SRC="images/forum/smilies/icon_biggrin.gif">
Thanks,
Josh
Hello Josh,
Just writing you with a few ideas. I'm a beginner also, but I've found out that you can get a CMA (Comparative Market Analysis) also called "Comps" from some of the Websites. What that is Josh (as you probably already know), is property that's sold in the same area of the "subject property". The "Comps" gives you an idea of what your "subject property' might be able to sell for. This keeps you from spending money up-front for an appraisal (even though that is one of the best ways to get the value of a home.) But, even the appraiser is going to get some of his/her "value" of the house by looking into the "market" also. You may eventually want to do that (if you just have to) to "close" on a deal. One Website that comes to mind that you can get some "Comparables" from is ****Must Reach Senior Investor status before posting URL's*** then look in the left column of the home- page, and click on "buy a home", when new menu comes up, then click "home values". This will put you on a screen that will ask for address etc of the "subject property". Just follow the prompts. Once you get an idea of the "Comparables", then you can send an Investor/Investors out to the property and see what they'll give you for it. Then you go from there. This (of course) is just one way to do it. Also, in answer to your question about if you should put a "down payment" on the property, my understanding is that you should have some kind of "consideration" down on the property. "Consideration" is merely (from my understanding); "money", or "something of value". But, that could be $10.00. That way, if the deal falls through, or you can't get an Investor, you're not out of alot. But, at least you have something on it to pacify the owner of the property.
These are just ideas Josh, and you probably have done something by now. But, I just read your "post" tonight (10-2-03). My "disclaimer" is "These are just my opinions. I'm not an attorney, a Realtor, or a legal advisor. I'm just a beginner Investor. Please consult a professional for any legal advise, or direction."
Thanks, Josh for this opportunity to respond to you. I hope in some small way I have helped. Let us know how well you're doing!
"Making that helpful Connection",
Kathleen
[ Edited by macrocosim144 on Date 09/24/2003 ]
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EstherConnection :-? :-? :-? :-? :-? [ Edited by EstherConnection on Date 10/02/2003 ]