RE Attorney, Lender, Realtor, Inspector, etc. Associates

RE Attorney, Lender, Realtor, Inspector, etc. Associates

Brunswick, OH · Member since 2014 · 17 posts · 1 vote

I'm just starting out as a wholesaler in Ohio. I plan on doing out-of-state deals also as I've learned that can be done, you know, without setting foot in a property. I've read that it's good to have an attorney on my "team", is this mandatory? Apart from picking their brain, is it to handle all of the closings? I read that in Ohio, a title company handles the closings, so if I find a title company, I don't really need to hire an attorney, right? As for inspecting the properties, I understand that this is to figure out repair estimates to factor into my offers and save my cash buyers/rehabbers/investors time and money, but I found a really good software to calculate all that for me, so I don't really need to hire an inspector or appraiser as using rehab offer calculator and rei autocomp softwares will save everyone time and money, right? Lenders are a different story. I would seek to have a good one on board, just in case. Last, but not least, if I do a deal out of state, would I use the same Ohio title company or would I find a title company in the state that the property is located in? I hope I didn't overwhelm you!

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  • Real Estate Investor · Lansdowne, PA · Member since 2013 · 1k+ posts · 656 votes
    12y

    Depends on where you are closing these deals. Attorneys can come in handy in many cases including wiring you your profit, handling EMD and making sure the contracts are in your favor. IL is an attorney state so you very well may need them if you're wholesaling there. You should have a team set up in your home market even a good back-up for every position. Also remember you'll need someone on the ground(good birddog / locator for one) in those out of state areas that you're trying to close in; so team work is your best bet.

    Kudos,

    Mary

  • Darrin CareyPro Member
    Lender · Dayton, OH · Member since 2008 · 1k+ posts · 705 votes
    12y

    @Nick Sandt  You're just starting as a wholesaler, and already trying to figure out how NOT to have the right people on your team? The right people on your team are there for a reason, your success.

    The Title Co works with an attorney and may cover a lot of that need in Ohio, but not all. You need to make sure you are complying with Ohio Law, and that you are NOT, even unintentionally, acting as an Real Estate Agent.

    To be a good wholesaler, you MUST have an accurate repair estimate. Software is useless if you don't have the right information to put into it. That includes the repairs, matching the correct level of repairs and finishes, the cost of each repair to each finish, etc. Somebody has to go to the property to do that. A home inspector can help, but not do it for you. They will tell you if the bathroom is broken, but won't tell you the bathroom needs to be updated for a retail sale. 

    To be a good wholesaler, you must have an accurate After Repaired Value (ARV). An Appraiser or an Agent is key to getting this right. If you're wrong here, everything else is useless.

    Start by focusing on deals near you. You'll find it easier to get started locally.

  • Brunswick, OH · Member since 2014 · 17 posts · 1 vote
    12y

    Thank you Marry and Darrin for the feedback! Much appreciated!

  • Brunswick, OH · Member since 2014 · 17 posts · 1 vote
    12y

    @ Darrin Carey - I'm all for effective team work, but because I am just starting out, I have no idea how much it costs to have these people on my team and I don't want to spend money where I don't need to. Once I've done a few deals and experience for myself that wholesaling is a stable and nice income, then I'm sure I could afford all the team members and even more.

  • Bear, DE · Member since 2014 · 178 posts · 65 votes
    12y

    Nick,

    Success is generated when you create a team of reliable people. Most businesses fail because they did not write a business plan to follow. 

    I suggest a few things, an attorney --- some investors never speak about the law regarding Real Estate (maybe they don't know) but each state have lengthy laws around real estate. You do not want to break one and land in trouble. 

    Wholesaling is normally the beginning then a person goes into another aspect like buy and hold. You need a good contractor - just in case you want to transition from wholesaling to rehabbing - renting, Then you need a person to do repairs. You need an electrician. You might need a good landscaper. You need a good Realtor.  I've seen other investor programs that teach people how to find and develop these teams in other cities. 

    Plus look at it this way, your out of town, you can't do all the work or none of the work. But if you generating multiple deals - that's constant work, you receive better pricing from workers. You build relationships to do more deals. 

    That old saying teamwork makes the dream work is true. 

    Just look at all these shows on TV that enhance an image of a flipper - every last one has a team.  

  • Brunswick, OH · Member since 2014 · 17 posts · 1 vote
    12y

    Hey Sean, thanks for the feedback! I couldn't tell you about any of those flip shows, don't watch much tv. I've never worked with a lawyer before and I was brought up to believe they make a lot of money. I'm sure I'll find a good one and everything will work out the way it does when it all works out.

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