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Real Estate Wholesaling

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

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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Foreclosures

Network Your Way to Real Estate Success!

by Stephani Davis | August 20, 2009

One of the best ways to get your feet wet if you are a beginning investor or wholesaler is to get out and start networking with other like-minded individuals in your market.

When I was first getting started in my wholesaling career, I was a networking Ninja.  My first year I made it my mission to get out and meet as many players in my market as I possibly could, and to introduce myself and let everyone know who I was and what I was trying to do.  Some weeks I was going to real estate investor meetings five days out of seven.   I was there like clockwork, handing out my business cards and getting to know who the movers and shakers were.

Even though I was scared to death at first, I forced myself to get out of my comfort zone and start plugging myself into the investor pipeline.  I took somewhat of a  “fake it ’til you make it” approach, and even though I didn’t really have a lot of experience under my belt, I decided that I was going to jump in and rub elbows with the big boys anyway.   I read in a book somewhere that you become who you hang around, and so I made the decision that I was going to start hanging around like-minded, successful individuals.

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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 [...]

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Real Estate Investing

Are You A One Trick Pony? How to Profit in Today’s Real Estate Environment.

by Jason Hanson | September 24, 2008

I screwed myself at the grocery store again. I bought 24 cans of Spaghettio’s (no, I don’t care if that’s the correct spelling) because they were on sale two for one. Well, I finally ate a can yesterday and it was terrible. As in, I didn’t even eat it all and I [...]

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Financing Real Estate

4,150 Reasons That I Love Lease Options

by Jason Hanson | August 7, 2008

When I become President and it’s the United States of Jason, I will impose the death penalty on anyone that stops at a yield sign…for heavens’ sake, if you were supposed to stop, there would be a stop sign and not a yield sign. Do you think they put that extra strip of roadway [...]

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Flipping Houses

So You Want To Be A Real Estate Wholesaler?

by Richard Warren | April 7, 2008

Whenever I attend my local real estate investment club meeting someone using the same pick-up line inevitably approaches me: “I’m going into wholesaling, can I call you when I have a deal?” Most of these people are never seen or heard from again. It seems that most of them attended some guru’s curse on how [...]

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Foreclosures

Every Short Sale Opportunity isn’t Worth Chasing – More Time – Bigger Checks

by Milton B. Yates | February 28, 2008

It is no secret that the business of buying real estate directly from the bank prior to it being foreclosed on is both in style and highly lucrative. The issue a lot of “Short Sale Specialists” have revolves around making the deal work on the front end. Time is our most valuable asset [...]

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BiggerPockets News

Announcing: BiggerPockets News Update 4-20-07

by Joshua Dorkin | April 20, 2007

Hello Everyone. We wanted to give you an update on a few exciting new things going on here at BiggerPockets®!
New Website Features

Meet the Investor
We’ve begun to interview investors in an attempt to help others learn more about what it takes to be successful. Have a look. Many of our blog readers [...]

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Learn Real Estate

Wholesaling Real Estate Basics

by Joshua Dorkin | November 25, 2006

Wholesaling provides an opportunity for someone to build income with little capital or credit. All it requires is ambition and some specialized knowledge. The more ambition you have, the more money you will make. Wholesaling does not require a real estate license. A license is not required to buy or sell any property that you [...]

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