Real Estate Wholesaling

Wholesaling Houses FAQ

by Stephani Davis | December 17, 2009

Wholesaling houses is appealing to many beginning investors because it can be done with minimal risk and little to no upfront cash. Following are some of the most frequently asked questions I receive from folks who are looking to jump into the wholesaling arena. Do I need a lot of money to get started? While it [...]

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Real Estate Wholesaling

REO Wholesaling FAQ

by Stephani Davis | December 10, 2009

I’ve been in the REO wholesaling arena for several years now, and as a result, have received many emails from aspiring wholesalers who have questions about the process of flipping bank owned properties. Following are answers to some of the most frequently asked questions that I have received about REO wholesaling. Can I add “and [...]

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Real Estate Wholesaling

10 Questions to Ask Investors Before Adding Them to Your Wholesale Buyers List

by Stephani Davis | November 26, 2009

If you’re a wholesaler, having a rock solid buyers list can be a tremendous help once you get a property under contract. Like I mentioned in my last post- one of the easiest ways to alienate the investors on your list is by repeatedly sending them deals that do not fit their criteria. To [...]

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Real Estate Wholesaling

Wholesalers: Three Sure-fire Ways to Alienate Your Real Estate Buyers

by Stephani Davis | November 19, 2009

One of the most important aspects to a successful wholesaling career is being able to build and maintain a list of active investors to sell your deals to. If you want to keep your buyers happy and turn them into repeat customers, avoid the following three actions at all costs… Underestimating Repairs Like I mentioned [...]

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Real Estate Wholesaling

Wholesaling and Repair Estimates – You Don’t Need to be an Expert!

by Stephani Davis | November 5, 2009

When I was just getting started as a wholesaler, one of my greatest fears was that I was not going to be able to estimate repair costs accurately for my end buyers. I had no prior rehab experience, and the thought of learning the costs involved in rehabbing an entire house was extremely intimidating to [...]

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Real Estate Wholesaling

Rehabbers, get to know some Real Estate Wholesalers

by Justin Pierce | October 11, 2009

In real estate there seems to be a culture of do-it-yourself. There is a swagger amongst investors who will tell you they can do almost everything and anything in no time at all. Now, I’m sure you could learn how to be a lawyer at the public library but I think formal training might be of some value.

You can’t be all thing or all people in real estate. In the next few weeks I will write a post about forming a Master Mind Group but for now I want to give a special plug to wholesalers. I want to both convince investors to work with wholesalers (specifically rehabbers) and I want to help wholesalers add value to their services. The first step to any business is to learn the business and the next is to learn what you should delegate to others.

Keep Your Friends Close and Your Wholesalers Closer

There is another cultural norm in real estate: if you can be cut out of a deal you will be. I don’t know how many times I’ve seen wholesalers, realtors, and mortgage brokers cut out of deals after performing significant services for which they were never paid. This is one reality that makes it very difficult for wholesalers to provide their best services. They have to spend almost as much time securing their position as they doing trying to get the deal done. Wholesalers don’t have the protections that realtors have. They’re actually a pretty skittish bunch. Cultivating a relationship of trust with your wholesaler will ensure they can give you the best service and increases the chance that you’ll get more good deals coming your way. The wholesaler/buyer team is much like a marriage. It can’t work very well if there isn’t trust or if only one partner is working on the relationship. In fact, I know many would-be wholesalers that leave the business because they bust the humps to find deals but then can’t find reliable end buyers. That is just a crying shame considering how rare the good deals. Help your wholesaler help you.

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Real Estate Wholesaling

How to Close REO Wholesale Deals (Part 5 of 5): Using a Land Trust

by Stephani Davis | October 8, 2009

Today I am bringing you the final post in my five part series where I have explained the various methods available to wholesale REO deals and get around the “No Assignment” clause that most banks include in their addenda.

So far, I’ve discussed simultaneous closings (my preferred method), double closings, using a quitclaim deed, and using an LLC.

Using a Land Trust to Wholesale

In this post I will be talking about using a Land Trust to get your REO wholesale deals to the closing table. This strategy is similar to the LLC method that I discussed in last week’s post; in both instances, you will not be selling the actual property to your end buyer, but rather, the LLC or the Land Trust which owns the contract to purchase the property.

If you decide to wholesale your deals in this manner, you will be making your offer to the bank in the name of a Land Trust (which you will create once your offer has been accepted), and signing the offer as the Trustee of the Land Trust.

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Real Estate Wholesaling

How to Close REO Wholesale Deals (Part 4 of 5): Using an LLC

by Stephani Davis | October 1, 2009

Today’s article is part four in a five part series, where I will be shedding light on the various methods available to close REO wholesale deals and get around the “No-Assignment” clause that most banks include in their addenda.

In weeks 1-3 I have discussed using simultaneous closings, quitclaim deeds, and double closings to get your REO wholesale deals to the closing table.

This week, I will be talking about using an LLC to wholesale your REO properties to your end buyer.

Using an LLC to Wholesale

If you decide to use this method to close your REO wholesale deals, you will be making your offer to the bank in the name of an LLC, creating the LLC if/when the bank accepts your offer, and then selling your membership/ownership in the LLC to your end buyer in exchange for your wholesale fee. When using this strategy, you are not selling the actual property to your end buyer, but rather the LLC which owns the contract to purchase the property.

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Real Estate Wholesaling

How to Close REO Wholesale Deals (Part 3 of 5): The Double Closing

by Stephani Davis | September 24, 2009

This article is part 3 in a 5 part series, where I will be explaining the various methods available for closing REO wholesale deals, and getting around the “No Assignment” clause that most banks include in their addenda.

In part one of this series, I talked about simultaneous closings, and part two I discussed using a quitclaim deed to wholesale your REO properties.

Today I will be focusing on doing double closings.

What is a Double Closing?

Just like a simultaneous closing, when doing a double closing, there will be two separate transactions taking place- the A-B transaction where you are buying the property from the bank, and the B-C transaction where you are selling the same property to your end buyer.

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Real Estate Wholesaling

How to Close REO Wholesale Deals (Part 2 of 5): Using Quitclaim Deeds

by Stephani Davis | September 17, 2009

This article is part 2 in a 5 part series where I will explain the various methods available for closing REO wholesale deals and getting around the bank’s “No Assignment” clause.

Using the Quitclaim Deed Method to Wholesale Real Estate

Last week, I explained the mechanics of using a simultaneous closing, and this week I will discuss using the Quitclaim Deed Method to get your REO wholesale deals to the closing table.

When using the Quitclaim Deed Method, you will be adding your end buyer onto the purchase contract that you have with the bank, and then giving them a quit claim deed after closing in exchange for your wholesale fee.

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Real Estate Wholesaling

How to Close REO Wholesale Deals (Part 1 of 5)

by Stephani Davis | September 10, 2009

If you’re a wholesaler and have been considering jumping into the REO arena, you’ve probably already figured out that you’re not going to be able to assign your purchase contract to your end buyer like you would on a regular wholesale deal. Ninety-nine percent of the banks will include a “No-Assignment” clause in their contract which will prevent you from doing so.

REO Wholesales are Still Possible!

Because of the bank’s restriction on assigning contracts, many wholesalers are under the impression that there is no way to wholesale these deals at all. This is far from the truth, and while there may be a few more hoops to jump through when wholesaling REO properties, there are still several ways to get these deals to the closing table.

Over the next five weeks, I will be covering five different strategies that you can use to wholesale your REO deals and get around the bank’s “No- Assignment” clause.

Conducting a Simultaneous Closing

Today I will be talking about using a simultaneous closing, which is the way I have been closing my REO wholesale deals for the last two years.

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Real Estate Wholesaling

REO Wholesale Deal: Step by Step

by Stephani Davis | September 3, 2009

I often get questions from aspiring wholesalers about the steps involved in an REO wholesale flip.

In today’s article, I’ll walk you through one of my most recent deals from beginning to end..

While checking the MLS about a month ago, I noticed a property that just hit the market. It was located in an area that I have done quite a bit of business in, and have several buyers looking for deals in..

Wholesaling REO Property Success: Case Study

The property was listed as a 2/1, and was priced at $11,000, which is a phenomenal price for this area. I recently sold a similar property in the same neighborhood for $25,000 so I knew this was priced right, and was out the door to look at it within minutes of seeing the listing.

Once I got to the property, I was pleasantly surprised. Aside from the fact that the house smelled like a curry factory, it was in great shape. It also had 3 bedrooms instead of two, which was just icing on the cake.

I rushed home to write up an offer, and had it submitted within the hour. I made the offer directly to the listing agent, allowing her to make both sides of the commission, as well as the $3,000 selling agent bonus that was being offered.

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Real Estate Wholesaling

Property Wholesalers – Know Thy Market!

by Stephani Davis | August 27, 2009

One of the questions that I get asked most frequently from aspiring wholesalers is, “How do I know how much to offer on a property?”

Just use the magic Wholesaler Formula, right?

Most people are looking for a magic formula that you can just plug a few numbers into, and out will pop the correct answer..

While there are formulas that you can use as a guide to arrive at your offer amount, there is no cookie-cutter formula that will apply to all markets and all neighborhoods across the board. In some areas you might be able to get away with contracting deals at 65-70% of market value and wholesaling them for a profit, but in markets like mine (Tampa), you are going to need to be much lower.

Great Deals Differ from Market to Market

If you want to be a successful wholesaler, you need to hit the streets and find out what constitutes a good deal in YOUR market. This takes quite a bit of time and effort, but it is something that you need to do if you want to start contracting deals and getting them to the closing table.

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Real Estate Investing

Three Easy Ways to Build a Wholesale Buyers List

by Stephani Davis | August 6, 2009

Real Estate Buyers List for Wholesalers Wholesaling houses is much easier when you have a list of active buyers lined up ready to purchase your deals. I personally spend just as much time looking for deals as I do looking for buyers. I am always on the hunt for new buyers, and as a result, I am usually able to unload my wholesale deals within hours of putting them under contract.

The following is a list of my three favorite methods for locating new buyers. If you implement one or more of these strategies and follow through on a consistent basis, you will have yourself a nice, healthy buyers list in no time.

Here we go…

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Real Estate Investing

The Six Risks of Risk Free Real Estate Investing Techniques

by Justin Pierce | July 12, 2009

There seems to be a lot of talk lately about “no-risk” real estate investing techniques. I’ve heard this talk before but it seems much more abundant as of late. Maybe it’s the economy and all the fear the downturn has generated, or just the new flavor for the real estate guru’s. Regardless of its origins, [...]

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