Wholesaling (by Lisa [VA]) Sep 20, 2022 7:44 PM|
Wholesaling (by Robert J [CA]) Sep 20, 2022 8:00 PM
Wholesaling (by Richard [MI]) Sep 20, 2022 8:18 PM
Wholesaling (by Ken [NY]) Sep 20, 2022 8:49 PM
Wholesaling (by Ray-N-Pa [PA]) Sep 20, 2022 8:58 PM
Wholesaling (by Landlord ofthe Flies [TX]) Sep 21, 2022 12:14 AM
Wholesaling (by BRAD 20,000 [IN]) Sep 21, 2022 12:44 AM
Wholesaling (by FloridaNative [FL]) Sep 21, 2022 8:52 AM
Wholesaling (by S i d [MO]) Sep 21, 2022 8:54 AM
Wholesaling (by GKARL [PA]) Sep 21, 2022 9:55 AM
Wholesaling (by Deanna [TX]) Sep 21, 2022 11:51 AM
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Wholesaling (by Lisa [VA]) Posted on: Sep 20, 2022 7:44 PM
I would like to buy another investment property but our market is very competitive. I heard it might be a good to find a wholesaler. Any thoughts on this and whether a wholesales is better to work with than a real estate agent?
Wholesaling (by Robert J [CA]) Posted on: Sep 20, 2022 8:00 PM
I've tired many different methods and sometimes you can find a jewel of a property thru the most unusual means possible.
My gardener was buying a house, so he said, thru a Wholesaler. So I did 10 minutes of investigation and learned the Wholesaler made an offer and had only 10 days to put up a deposit or loose the rights to buy the property. The Wholesaler went to a training course and has no assets even to lock up a property. It's only "talk".
So my gardener asked is many members of the family to send over some additional money so he could have "proof of funds" for a down payment. That couldn't be done in time since the Wholesaler's 10 days were almost up.
My gardener asked me for some money in the mean times. So I asked the wholesaler for documents to prove they properly locked up the deal.
The contract was a joke. The Wholesaler had no "legal" claim to tie up the property, only the ability to be a bidder.
So unless your Wholesaler knows what they are doing and can prove it via their contracts and deals they closed in the past year, I wouldn't waste time working with one. --47.156.xx.xx
Wholesaling (by Richard [MI]) Posted on: Sep 20, 2022 8:18 PM
Some real good advice from Robert. Epecially in large cities, the "guru's" come around on a regular basis selling their courses. Beginners and newbies send out the cards and if something happens they often can't do the deal right. I would, at the least, go to your local landlords assn and see if they have any reliable ones that might put you onto a lead.
If not, drive around and look for long grass in yards, empty places and maybe follow the evictions from the courthouse (if they are doing them). I'm moving slow now because prices are high but I'm thinking in a few months there may be more action. --24.180.xx.xx
Wholesaling (by Ken [NY]) Posted on: Sep 20, 2022 8:49 PM
I buy a lot of houses and have wholesalers calling me weekly,they hardly ever have a good deal or even know what they are doing. I would not waste the energy intentionally trying to find wholesalers.I have had good luck putting free ads on facebook garage sale sites.In my state foreclosure auctions are picking up,i would suggest you look into them.The balance owed has nothing to do with what the bank places there final bid as,i got one yesterday for $12000, the bank was owed $50000, i will clean it out,probably a 30 yard dumpster and have the lawn mowed cost of about $1500 list it with my broker as a handyman special and get $50000 or maybe more for it --74.77.xx.xx
Wholesaling (by Ray-N-Pa [PA]) Posted on: Sep 20, 2022 8:58 PM
How much do you plan on paying the wholesaler for this house? let just say, it is a simple $10,000 over what they have tied up in it?
What are you paying for?
You are paying for the expertise in finding properties.......but for $10,000! Here is a better approach and a challenge. Spend $10,000 and learn how to do it yourself? Then you can do it yourself again and again. --24.101.xxx.xxx
Wholesaling (by Landlord ofthe Flies [TX]) Posted on: Sep 21, 2022 12:14 AM
Wholesalers add another layer to the profits, same as Realtor, but I'd take a Realtor over wholesaler any day. Usually wholesalers put a property under contract and assign it to you, but it's usually a tight schedule.
Best to drive target neighborhoods and look for houses and yards in disrepair and send mailers to those houses. Also look at local appraisal district to see which houses are not owner occupied. Those are usually rentals. Another approach is to cozy up to estate and divorce lawyers. --108.69.xxx.xxx
Wholesaling (by BRAD 20,000 [IN]) Posted on: Sep 21, 2022 12:44 AM
Wholesalers are everywhere.
Nothing to lose by looking.
Wholesaling (by FloridaNative [FL]) Posted on: Sep 21, 2022 8:52 AM
Wholesalers are the worst. Their contracts are awful for the seller and the potential end use buyer (you). Agree with Robert J and Landlord of the Flies - stay away from wholesalers and do the looking yourself. --73.205.xxx.xx
Wholesaling (by S i d [MO]) Posted on: Sep 21, 2022 8:54 AM
The bad thing about wholesalers is they are the wild west of real estate. With no licensure or education requirements whatsoever, any Joe Blow who watches a YouTube video on how to make Big monies wholesaling can decide to be one.
If you want to do business with such folks, I recommend looking for one who has been in the biz at least 5 years. The "We Buy Ugly Homes" guys used to be a force in my town, but I don't hardly see them any more. Most properties that would have gone "wholesale" a few years ago get listed on MLS now, because even with the recent slow down houses are still selling for 2x what they did 3 years ago. Almost everyone knows real estate is hot, so they list it for sale vs. waiting for a stranger to show up and offer "all cash, quick close in 7 days."
As Brad says, it can't hurt to look, but don't get too excited. I find more value these days in sifting through poorly advertised commercial property. For some reason, commercial agents are often lazy, even with mullion dollar+ properties that offer huge commissions. The listings contain almost no detail about property features and amenities, have only a few bad pictures, and provide scant information as to the potential for what a site can be used for.
I found one a couple weeks ago that had these marketing remarks: "Nice steel building, plenty of parking, Seller wants to retire." 3 pictures of the outside. No word on the rents. Disclosed seller's motivation. Nothing about the zoning other than "commercial". There are 4 types of commercial in my town, and depending on which type you get there are about 50% more potential uses for the most lenient vs. the most restricted.
List price: $3.4 million.
Holy cow: that's $102,000 at a 3% Selling Agent split. Pretty good wages for the "work" involved.
Wholesaling (by GKARL [PA]) Posted on: Sep 21, 2022 9:55 AM
I think the days of the wholesalers are coming to an end. There's going to be a big shakeout and wholesalers, newbie investors buying at 1% and some real estate agents are going to get cleared out. I think the next six to twelve months will see big changes in market conditions. You won't need a wholesaler to find good deals. I plan on hanging out at sheriff's sales again. --173.255.xxx.xx
Wholesaling (by Deanna [TX]) Posted on: Sep 21, 2022 11:51 AM
From what I saw, the model for a lot of wholesalers was, "You pay $x for the privilege of being in our club and having access to our super-secret list of opportunities. Then, if you want to act on it, you go through them for your mortgage. They get the benefit of playing the bank; you get the benefit of a cheap house that's not quite as cheap as when the wholesalers acquired it. Then, if you end up defaulting on your payments, the house reverts back to the wholesalers. Rinse and repeat.
You can find your own wholesale deals in a market that isn't picked over. Around here, there were opportunities between 2010-2014, but by 2015-2016, they had become much more sparse. So then it becomes a matter of waiting for the next cycle. In general, when everyone is hurting badly, that's when the opportunities are available. But from 2010-now, there's also so much more money that has made it into the system by this point, and nowhere useful for it to go because interest rates are so low--- it has messed with the usual economic ebb and flow.
So-- right now, I'm paying attention to what I already have. I buy when it makes sense, but I don't chase a deal to force myself to grow under less-than-optimal conditions. Good luck! --137.118.xx.xxx
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