Orlando, FL · Member since 2014 · 21 posts · 6 votes
Hi guys
I've been wanting to become a REI for a very long time, and have been devouring this site and the podcasts like a maniac over the last couple weeks. I have some pretty specific goals and I believe they are achievable in my market, but I want to hear from more people from Orlando/Central Florida to see if I'm on the right track.
1. Start a wholesaling business - of course I know I need to find some investors locally that can show me the ropes here and I need to find cash buyers, but I believe I have the skills to get this done.
2. Begin flipping properties once I've secured enough capital and knowledge from the wholesaling business.
3. Begin to buy investment properties in about 3-4 years once I've developed enough capital for good down payments from my wholesaling/flipping business.
I know it would be a good idea to begin attending my local REIC meetings to start connecting with people. We actually have a group of local newbies meeting this Saturday for the purposes of getting to know one another.
I'm a professional photographer/videographer, so if any REI's in Orlando that would like to share some info with me, I'd me more than glad to help you out in marketing your properties with pro photos and videos.
technically "wholesaling" is not illegal. I think a better term is contract brokering. Now, there are actions that COULD make it illegal: specifically advertising the house, showing the house, etc. At that point you would not be marketing a contract you would be marketing a house...for another....for profit...without a license. How one can assign contracts without marketing the house, showing pictures, or actually doing showings seems difficult at best. I talked to someone today that has contracts stating they have the "right to show, advertise for sale, etc" which she expects owners to sign. That is illegal UNLESS you are a broker or working under a broker...and when you have that signed they are called listing agreements. I get 100's of letters and postcards from some of these operators and like to occasionally do a little research. I found at least two within the last couple of weeks that show they are under investigation by the state for unlicensed activities. I have no idea exactly what they did, if they showed houses or whatever, but the bottom line is: if the state issues fines, files criminal charges, or simply issues a cease a desist order that is the end of these guys M/O. You can go to www.myfloridalicense.com and click on "unlicensed activity" and look up someone by name. I believe there is also an online form to file a complaint for unlicensed activities. Either way, why bother with the hassles, fear of legal action, fear of potential criminal charges, whatever. Get a license if you want to represent others. Your other option is to buy the properties and then resell them. Acting as a principal, you don't need a license. That seems the easiest solution.
Rental Property Investor · Orlando, FL · Member since 2014 · 132 posts · 24 votes
11y
@Samuel Muniz glad you're taking the plunge. We feed in the same market and just like you, I have entered in not too long ago.
Being proactive is good. However, I found this from my experience. In asking for help, you will get a little of it here and there. The person that is the helper/adviser also has a living to make and has a life after RE. He will give you what he can and that may be limited.
In asking for help, what I found was that really good help and support comes via 2 paths. The first is when you get a deal. Have faith and confidence in yourself in knowing that you have done enough research and reading to where you have some knowledge. You will fare well. At some point, you will hit a barrier/s and when you reach out at that point, the responses will be more elaborated and the response count will also be higher.
I am assuming that people feel obliged and responsible when the situation at hand is "real". Hence, they make a real effort to see you getting back on path. Their investment in you coming out good, has a feel-good factor as their reward. To some (esp. seasoned investors) this is something they perceive as rewarding, as most deals that they come across, they can do with their eyes closed. We all need some sort of reward to feel valued.
The second thing you can do is have something on offer. Now that something can be anything, but the help you get will be proportional to the value you are offering. Easch person puts a different value on different offers.
You, my friend, have something very unique to offer. In saying you are a pro at photography (videography makes you even more marketable), you have to put that out in an optimal manner. Photography/videography are expensive enough for most to not use, as it bites into profits. However, it really does go a long way into marketing a property.
That offer that you have tabled, should be very much at the top of your post. You should also elaborate as to what work is involved and the hours it takes to put good work out. Also with a little research, you can get RE marketing stats based on the use of pictures/videos. Put it all out the and show the real value that you can bring. Sometimes, your lack of value in your product, will allow the counter party to offer you way less, only because that they can take advantage of the situation.
I wish you the very best and am in admiration of the dedication you have for this. Being on the same working field, I can see our paths crossing sooner or later. Till than, take care.
Orlando, FL · Member since 2014 · 21 posts · 6 votes
11y
@Sam Alpha thanks so much for the awesome words of advice. I will put myself out there more with my marketable skills. I really want to learn this business forward and back, and am willing to lend my talents to do so.
I'm definitely sure we'll meet soon in some capacity. I'll be getting more involved in the local REI events as the coming months swing by.
Investor · Orlando, FL · Member since 2012 · 822 posts · 303 votes
11y
Hey Sam, If I was you, I would get licensed in Orlando and join a solid team where people can teach you what you need to know about wholesaling. I think we talked about this at CFRI?
Orlando, FL · Member since 2014 · 21 posts · 6 votes
11y
@Justin Stamper As I've pondered it more and more over the last couple weeks, I agree with your advice. I'm going to go ahead and pursue getting licensed to start things off.
Real Estate Broker · Orlando, FL · Member since 2014 · 153 posts · 73 votes
11y
@Samuel Muniz I can relate to what you say in this post. I was in your shoes 2 years ago, being in love with RE and wanting to become a wholesaler. But as you know it is hard to find a mentor that will take you under their wing and teach you but also not costing you thousands of dollars. I did what Justin said and I got my license and joined the wholesale team at Altura and it has been the best decision I've ever made. I've learned so much about Real Estate investing and wholesaling. So my advice is to grab the bull by the horns and get your license, and go work for a wholesale firm. You'll be happy you did.
Real Estate Transaction Engineer · Jacksonville, FL · Member since 2014 · 271 posts · 74 votes
11y
Are you folks talking about a realtor's license or business license?
I have read on other posts here that being a wholesaler in Florida could be tricky and illegal. So, those who are in the know and have experience and deal in Florida, please confirm.
The take away was that you have to be on title (principal) and not just own the paper (purchase agreement or option) if you wish to market said property. Now if you work with a realtor, I'm not sure if that's the best option as that cuts into your profit margin. However, you get the best results if you're targeting home buyers, not investors.
Also, it came down to intent. Can you legally show you "intended" to buy the property, but resold that option because there was profit without actually owning the property.
You can't market a property you are not on title. You can't sell without owning (no double closes) and since you owned it for a minute and resold could be construed that you marketed the property.
Anyway, I'm just saying check it out yourself and BEWARE.
technically "wholesaling" is not illegal. I think a better term is contract brokering. Now, there are actions that COULD make it illegal: specifically advertising the house, showing the house, etc. At that point you would not be marketing a contract you would be marketing a house...for another....for profit...without a license. How one can assign contracts without marketing the house, showing pictures, or actually doing showings seems difficult at best. I talked to someone today that has contracts stating they have the "right to show, advertise for sale, etc" which she expects owners to sign. That is illegal UNLESS you are a broker or working under a broker...and when you have that signed they are called listing agreements. I get 100's of letters and postcards from some of these operators and like to occasionally do a little research. I found at least two within the last couple of weeks that show they are under investigation by the state for unlicensed activities. I have no idea exactly what they did, if they showed houses or whatever, but the bottom line is: if the state issues fines, files criminal charges, or simply issues a cease a desist order that is the end of these guys M/O. You can go to www.myfloridalicense.com and click on "unlicensed activity" and look up someone by name. I believe there is also an online form to file a complaint for unlicensed activities. Either way, why bother with the hassles, fear of legal action, fear of potential criminal charges, whatever. Get a license if you want to represent others. Your other option is to buy the properties and then resell them. Acting as a principal, you don't need a license. That seems the easiest solution.
Rather than get a license, for now, I will look for funding and buy the place outright. I can talk to banks or FSBO or go to auctions to find the deals. I'm wanting to do fix and flips anyways, not true wholesales.
Getting from other wholesalers can lead to unknown issues (doesn't actually own the property, just the paperwork, for example, or a daisy chain of wholesalers in the mix). It's best to talk to the direct owner, whether or not they're a wholesaler.
Eventually, I might consider getting a license as that seems the best route if I was to do wholesaling. My thoughts are, if you're licensed, there are rules that will hamper your abilities, or cut into your profits, to wholesale. Net listing, conflict of interests, brokers fees, etc.