Is anyone making money from investing in real estate where you sell your interest in a FSBO real estate purchase contract to an investor (you don't take ownership of the house)? What is a reasonable price to charge? What are some good/bad things about using the method of REI?
Welcome to BP Pawnee. Do a search on here for "wholesale" and/or "wholesaling" and you'll find a ton of info on the subject.
Also, here's a free guide on wholesaling that might answer some of your questions:
I appreciate it. Thank you!
Hey whats going on Pawnee Its a lot of people making money off of wholesaling and then there is a lot of people who are not and end up leaving the business. Like Kyle said search the forums for wholesaling, also on youtube and definitely listen to the podcast from BP. They interview real investors some new and some with a lot of experience but it is no selling and it is not from guru's making it seem like a get rich quick scheme. Also google REIA's in the area. You will meet others that do it face to face and some are more than happy to help you out. Good Luck!
Love the name, are you part Pawnee ancestry? Any way, Fsbo's are the same as any other seller except they are trying to sell it themselves in order to save a commission or in the worst case trying to hide something an agent would discover and be required to disclose. So always consider the last item as a possibility.
The thing that counts is the price you have negotiated. That is the number one thing to determine whether you have something to sell or assign and profit from. The person you assign to has to get it at a price that works for them so the difference between your buy and sell price is your profit and there is no standard margin and varies from deal to deal but a wholesaler should at least get a profit equal to agents commission or 6% as a minimum in my way of thinking. My general goal was 10% plus.
This was in the markets I worked, I never worked a low priced state.
As a side note, I was always willing to take a fast nickle over a slow dime.
Thank you all for the insight. This is helpful for me considering I'm brand new at idea of wholesaling. Do any of you have a sample or template of what a solid Assignment Contract looks like? I'd love to get an idea of what I need to have in place.
How do I directly contact actual owners of a residential property? Where can I get Assignment of Contracts?
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!