A couple of years ago, I was going to start out in Wholesaling. However, life happened. I am finally ready to give it a second try. However, I need to know how I can build an all cash list. Should I find a property first, and if so, should I utilize an attorney? Should I find the cash buyers first, and then go looking for property based on their criteria?
I am also a Licensed Real Estate professional in the state of New York. I have done extensive research, but need to know how I should go about it. Furthermore, should I see the transaction to closing, or just worry about my part at assignment, and then move onto the next transaction. Any thoughts would be appreciated.
Here are a few ways I build a buyers list:
1. Contact investors from bandit signs and see if you can send them any leads that meet
2. Network at local REI groups
3. Contact for rent signs--in most cases these are investors and again see if you can send them homes that meet their criteria
Hope this helps
I hope I don't take you too far off topic - but I'd like to share some thoughts with you as you get started... (& then I'll try to also answer your questions)...
As a licensed RE professional in NY, you will be held to a higher standard. Some may perceive your wholesaling activities as cherry-picking or, worse, as acting as an agent. We know that the most successful real estate investors we work with are in fact licensed, so it's a plus not a minus, but just make sure you understand the rules and kind of put a virtual wall between your "RE investing" and your "RE agent" activities.
Have a different name for your RE investing business. Put your RE license # and a disclaimer on any marketing pieces you use for that business. Lead with the cash offer (wholesale offer), and if they choose not to take that, then offer to list it for them if they decide to go that route. Some investor/agents call their cash offer a "Guaranteed Sale Program" and it is available to the seller should they decide to take the cash at any time during the listing agreement.
OK, having said all that (!) you build your buyers list via NETWORKING. Get out there and do it. Call investors and ask if you can include them on your property email blasts, ask what they are looking for, etc.
Then, when you get a deal, yes follow it (via the title company) all the way to closing to make sure that it closes. You need to follow it all the way until you get YOUR check at closing.
Just be ready for the day that someone (like your broker) challenges you on whether your wholesaling activities are in conflict with your role as an agent (and the commissions that your broker expects). Best to make sure that your broker is 100% in synch from the start and understands that you are an investor looking for properties for yourself - which might be flipped to another investor...
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