Wholesaling houses

By nbrock - 11-18-2012, 07:25 AM - Boxden > The Money Spot (finance/careers)

Been loooking into this for a while....investors said this is the way to get started investing in homes...wondering if any of u guys have ever done it before and have any tips....

11-18-2012, 07:32 AM

I did this back in 2009. It IS a good way to get started, but its not easy. With the real estate market being down, now is a good time to get into wholesaling. The good thing about it is that if you have about $2,000, you can do it. Essentially, wholesaling is advertised as a method of flipping properties with no money. But that's a stretch. You at least need to have earnest money to make the contracts you enter into legally binding.

11-18-2012, 07:45 AM

Originally Posted by TheOpulentOne

I did this back in 2009. It IS a good way to get started, but its not easy. With the real estate market being down, now is a good time to get into wholesaling. The good thing about it is that if you have about $2,000, you can do it. Essentially, wholesaling is advertised as a method of flipping properties with no money. But that's a stretch. You at least need to have earnest money to make the contracts you enter into legally binding.

Could you tell me your experience with it if u don't mind...did u have a partner did u do it by yourself? Where are u from

11-18-2012, 07:52 AM

I already told you my experience in the first sentence of my initial reply. As for your other question: I worked solo.

11-18-2012, 08:38 AM

Originally Posted by TheOpulentOne

I already told you my experience in the first sentence of my initial reply. As for your other question: I worked solo.

Thanks a lot it much apreciated....I've been trying find houses that's been the hardest part for me....u have any tips?

11-18-2012, 08:56 AM

Originally Posted by nbrock

Thanks a lot it much apreciated....I've been trying find houses that's been the hardest part for me....u have any tips?

Well....
I've got good news and I've got bad news.
Bad news: In order for wholesaling to work, you have to get homes that are ridiculously underpriced. You're probably gonna have to submit 50-100 offers before you get an accepted offer. Some people automate this process by putting up signs. Those "we buy houses" signs you see on street corners are always wholesalers.

Ideally, you'd have an end buyer already lined up to[..]ign the contract to. Better yet, you'd have a team of end buyers lined up and the only properties you'd be looking for are those that fit what they normally buy. If not, you might pay a seller earnest money and never close the deal. Also, attach a legal addendum to your purchase agreements which protects you from being legally obligated to purchase the property should you not find a buyer in the agreed upon timeframe.

Good news: Although it may be hard to find a property, just one deal can net you about $5,000. Imagine doing just one deal per month and averaging $5,000 per deal. Even that's straight.

11-18-2012, 09:12 AM

Yea the hard part is keeping at it...I live in NYC and I've been trying to find houses with no luck...feel kind of discourage..but thanks for the advice it's some inspiration to keep going

11-18-2012, 10:10 PM

This !! is extremely hard (so don't think its an overnight easy thing). This will take a lot of time looking for properties, advertising, and reading planning. I would suggest you either go all in or don't do it. It's going to require dedication.

11-19-2012, 12:16 AM

Originally Posted by egotistical

This !! is extremely hard (so don't think its an overnight easy thing). This will take a lot of time looking for properties, advertising, and reading planning. I would suggest you either go all in or don't do it. It's going to require dedication.

Appreciate it....

11-20-2012, 09:25 PM

Did you guys need a real estate license or any other certifications or anything like that

11-22-2012, 07:22 AM

Originally Posted by stretch 'em out

Did you guys need a real estate license or any other certifications or anything like that

Not for wholesaling...no license required

11-22-2012, 08:11 AM

Originally Posted by stretch 'em out

Did you guys need a real estate license or any other certifications or anything like that

A license is required only if you want to be an agent/realtor.

11-22-2012, 03:18 PM

I live in Memphis and bird dog to investors in California. I get houses valued at 60-80k that are for sale 20-35k then present them to the investors in my circle. I charge 1k per house. I do 2-5 a month. I go through 500 houses a month easily though. Its not all easy. Im working on a project with one of my investors who wants to buy 25 houses. I hope this deal goes through. My biggest pay day ever!

11-22-2012, 04:37 PM

Originally Posted by TCalico87

I live in Memphis and bird dog to investors in California. I get houses valued at 60-80k that are for sale 20-35k then present them to the investors in my circle. I charge 1k per house. I do 2-5 a month. I go through 500 houses a month easily though. Its not all easy. Im working on a project with one of my investors who wants to buy 25 houses. I hope this deal goes through. My biggest pay day ever!

Good luck with that, i hope everything goes your way.
A few questions, where do u find that many houses, where do you find buyers or investors, and did you take out a loan or something to cover the 20-35k sales price

11-22-2012, 05:31 PM

Originally Posted by TCalico87

I live in Memphis and bird dog to investors in California. I get houses valued at 60-80k that are for sale 20-35k then present them to the investors in my circle. I charge 1k per house. I do 2-5 a month. I go through 500 houses a month easily though. Its not all easy. Im working on a project with one of my investors who wants to buy 25 houses. I hope this deal goes through. My biggest pay day ever!

Yes bless us all with your knowledge fam...we need it give us inspiration

11-25-2012, 10:03 PM

There's a Dude Named Mark WHitten who's all over WSHH Teaching the !!.....Go to his website you can sign up for a Free Ebook and Dude really does it.....He sent me email last week about he had 4 bedroom 2 and half bath house for 25 and whoever found a buyer he'd split the profit with them....It was $3,500 apiece

11-25-2012, 10:57 PM

Look up Mark Whitten He is all over WSHH about How to do this and got a youtube and course...Where he lays the whole !! out....The Course is $500
But here's a video

11-29-2012, 05:21 PM

Originally Posted by CartelFamill

Look up Mark Whitten He is all over WSHH about How to do this and got a youtube and course...Where he lays the whole !! out....The Course is $500
But here's a video

He lost me when he started trying to profit...Off of seminars and ebooks

12-05-2012, 09:56 PM

Wholesaling can not be done in California. 7 people including myself tried for about 6 months or more at the biginning of this year and last year with a total of 150 offers made in different counties and nothing went through. Sorry for bad feedback bro...

12-15-2012, 07:13 PM

Originally Posted by TheOpulentOne

I did this back in 2009. It IS a good way to get started, but its not easy. With the real estate market being down, now is a good time to get into wholesaling. The good thing about it is that if you have about $2,000, you can do it. Essentially, wholesaling is advertised as a method of flipping properties with no money. But that's a stretch. You at least need to have earnest money to make the contracts you enter into legally binding.

He's just about 90% accurate regarding his[..]esment on wholesaling. Ive been a real estate investor for 5 years now, and have yet to use a dime of my money for deals! It is a false notion that you need earnest money to wholesale a property. Earnest money is what you use if you decide to go the "option contract" route. Meaning exercising your option to buy or sell the property. What we do here in Rochester, where I might add last year ranked 3rd in the country behind Texas as the top cities for real estate markets....What we do here is simply use our standard purchase contract and simply place right next to your name on the contract "Or LLC to be named or formed" so for example you'll have Sellers name Jane Doe then Buyers name John Doe Or LLC to be named or formed. Just that little statement allows you to legally flip or sell the contract to another buyer! The new buyer will then be responsible for the earnest money which should sit in escrow with the sellers attorney! Every single deal Ive done has had that tag!

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