This is tooo HARD! :(

33 Replies

THIS WHOLE SALE THING IS TOOOOO HARD !!!!!!!!!!!!!!!!!!!!I have a cpl properties that I did the #'s on .....and no bites. I did the financial calculator on  them...(there good to go))They are good deals.  If I could get the funding I would purchase them myself. I just might! I am doing everything my mentor coached me to do on whole sale. ERRRRRRRRRRRRRR frustrated! Seems like rentals are the only thing I'm good at  :(.....

Everyone wants to know what the address is and when I don't reveal that to them just yet to try to get more info out of them..............I LOSE THEM! Then my whole day is filled up with CUTTING  hair and the every day activities of running spa and salon..buy the time I get back to them AT the end of the day ...I either can't get them or they can't get me and I lose them again.............. 

Why in the world would you not tell someone the address of a property you expect them to buy?

Maybe I'm missing something but if you asked me if I wanted to but a property the first thing I'd want to know is where it is. If you wouldn't tell me I'd assume you were just full of crap and didn't have anything to sell.

I'm not sure what your Mentor is teaching you, but it sounds a bit suspect to me. 

You're unlikely to ever do a deal if you won't disclose the actual address and let potential buyers have a look.  If you have them under contract, you can't be cut out of the deal.  If you don't have them under contract, you shouldn't be marketing them.

Well said Jerry---I agree!

@Barbara Long

Let me see if this helps you see it differently.  

If I told you I have a FANTASTIC deal for you....a nice red truck for only $9,500 and it's worth over $20K...would you buy it?  If not, why not?  Would you need to know year, make, model, mileage, etc. before making a buy decision?  Of course you would.  

Buyer's of real estate need all pertinent information to make a sound financial decision. If you refused to give me the address, I would immediately think something was very sketchy about your proposal.  

Real Estate is hard and uncomfortable. Rentals aren't easy either. Trust me! My houses seem to only break when my husband is deploying, we are moving, on vacation, you get the picture. That being said we all have our niche. The thing that even in the worst day (trust me there are a bunch) we still love and persevere. I could never do wholesaling not my thing. On the other hand, even on the worst days where I want to yell a red head fit regarding my tenants actions (instead I just write on my blog, bigger pockets forums or anything else). I love every moment! So the key is just to find what will make your heart sing even in the worst moments. 

give the potential buyers the address @Barbara Long  

if you dont have the property under contract as @Jon Holdman  said you should not market them

good luck, dont give up, this biz is a journey and will not happen over night 

@Mark Brogan  ok. I see what you are saying and I agree. But, there is a buyers agreement that they have to sign first with me after all the questions and answers between the both of us........my mentor told me then once they are interested in seeing it with the Realtor then they sign the contract with me on the finders fee , then that is invoiced to the Realtor to hand in at the closing if he purchases the property. (I'm confused now)...ha ha 

Originally posted by @Barbara Long :

@Mark Brogan  ok. I see what you are saying and I agree. But, there is a buyers agreement that they have to sign first with me after all the questions and answers between the both of us........my mentor told me then once they are interested in seeing it with the Realtor then they sign the contract with me on the finders fee , then that is invoiced to the Realtor to hand in at the closing if he purchases the property. (I'm confused now)...ha ha 

So what you are saying is that you are bringing ZERO value to the transaction?

Based on what you are saying here you are basically bird dogging stuff off the MLS and asking someone to sign an agreement to pay you a fee to, I think, have you tell them who the listing agent is so they can put in their own offer?

Why in god's name would anyone pay you for this?

Yes you CAN wholesale MLS stuff, but you actually need to get the stuff under contract and assign or double close like any other wholesaler will with real deals.

@Barbara Long  

sorry but that seems a bit confusing and convoluted, we buy a lot of houses and if someone told me all that without me being able to at least run the address and comps on the house I would not call back either. 

Why would I want to sign a contract with a finders fee before I saw the property? seems like a waste of time for both you and your potential buyer. 

Are you trying to sell off market houses you have under contract, or houses off the mls that are not under contract, ...or  why the realtor involvement? 

I wholesale about two houses a month as well as we rehab as well,  I have never made it this complicated for anyone to buy from me, apparently your mentor told you to do it this way, dont know why, 

If you have good deals, thats more than most people, now you just have to figure out how to get them sold, you will work it out if you presist. 

Originally posted by @Barbara Long :

@Mark Brogan  ok. I see what you are saying and I agree. But, there is a buyers agreement that they have to sign first with me after all the questions and answers between the both of us........my mentor told me then once they are interested in seeing it with the Realtor then they sign the contract with me on the finders fee , then that is invoiced to the Realtor to hand in at the closing if he purchases the property. (I'm confused now)...ha ha 

Huh?  A realtor is not allowed to pay you a finders fee if you're not licensed (assuming the deal is covered by RESPA).  And why would a potential buyer sign a buyer's agreement with you BEFORE even knowing the address of the property?  In fact, if you're not a licensed agent and you don't have an equitable interest in the property, you're not allowed to act as a broker of the deal, and signing a buyer's a agreement will likely only serve to incriminate you if there is legal action taken against you.

Either you're not doing a good job of explaining the situation, or your "mentor" is giving you some really bad advice.  

All that said, I'm not an attorney, so take this for what it's worth...

@Barbara Long  unless you are a realtor you are prob breaking the law, you would be in my state, and I think most states. Either you have a contract to control the property, or you are a licensed agent, otherwise its illegal. I would never sign anything without an address, I think u need to ditch your mentor and talk to us BP members. Might want to read this as well http://www.biggerpockets.com/renewsblog/2010/06/10...

@barber long, I am confused as to how you're trying to wholesale these deals and why do you have a realtor showing your deals to another investor? Are you attempting to wholesale the MLS? I don't understand where the realtor comes in handy unless you purchased and closed the property and put it back on the MLS at a higher price. Which if you did you don't have to worry about getting a purchase agreement before you show the house to anyone. How ever your trying to get paid off of these deals, wouldn't an assignment or a double close be easier? I'd love to hear why your using a realtor and why. Good luck selling your deals tho.

@Mark Brogan  I havnt even got that far yet with anyone. I have a 4 different mentors in 6 months and every single one did things differently.My last mentor  came from Utah  3 weeks ago. I was told to find a listing (he actually did this together with e and my agent (which I do with my agent-foreclosures) we go look at it together and I do a walk thru to do the rehab costs , then sit down and do the numbers. If anyone was interested after all the person looked at the numbers and all the pictures you take of all the rehab that needs done and if then they are interestedhave them sign a paper for a finders fee for the property address and the have them make a appointment with  the agent.,if they don't purchase i don't get my fee if they do purchase i get a fee but the fee is negotiable its not a set price or anything . Please Please..i'm here to learn...i'm just doing what the mentor told me to do. Now I feel like an A**!

Originally posted by @Barbara Long :

@Mark Brogan  ok. I see what you are saying and I agree. But, there is a buyers agreement that they have to sign first with me after all the questions and answers between the both of us........my mentor told me then once they are interested in seeing it with the Realtor then they sign the contract with me on the finders fee , then that is invoiced to the Realtor to hand in at the closing if he purchases the property. (I'm confused now)...ha ha 

Seriously, who in the heck is your mentor?  They should not be mentoring anyone and are asking you to accept money illegally.  And like @Shaun Reilly  said, you aren't bringing anything to the table.

To be a good wholesaler you have to bring properties to your buyers that they can't get on the MLS. And for goodness sake, you have to be able to give them the address.

Would you agree to buy a property before knowing the address???

So basically you can't give the address because if you did they would just buy it themselves off the MLS? Do you realize how shady this seems? Even if an investor did agree to this, once they realized it was already on the MLS, they would probably go around you anyway.

OK.Now I am totally confused. The realator does not give me money! lets get that straight. Im just going to drop this!!! I will purchase the houses myself rehab them then sell them. i have done that in the past and will continue to do so. It is ovious I was mis lead! No wonder I was having a tuff time!
Later...................................................................

Originally posted by @Barbara Long:

I was told to find a listing (he actually did this together with e and my agent (which I do with my agent-foreclosures) we go look at it together and I do a walk thru to do the rehab costs , then sit down and do the numbers. If anyone was interested after all the person looked at the numbers and all the pictures you take of all the rehab that needs done and if then they are interestedhave them sign a paper for a finders fee for the property address and the have them make a appointment with  the agent.

Basically, what you're explaining here is that you're acting like an agent when it comes to marketing and finding buyers for MLS listed properties...and then you hand the potential buyers off to your agent to look at the deals.

That's very likely not legal, and if this is the model you want to pursue, I'd recommend getting your real estate license and then you can find all the buyers you want...legally.

@Barbara Long  Don't leave.  Stick around and learn.  I think most of the posters above realize you're new to this and may have been led astray with some questionable "mentoring"....which is exactly why Bigger Pockets came into being 10 years ago.  The founders here ran into the same sort of shady dealings when they were initially learning.  Most of the people who commented are quite good at what they do, and if you stick around and follow their posts and comments, you'll pick up more and more.  Heck, I've even witness some pretty impressive "sparring" among some of the bigger players here and it is REALLY enlightening.  I know, for myself, I have learned enough that I ponied up for a Pro account simply to SUPPORT the site!

@Barbara Long  I have no idea what you "mentor" told you, but it sounds like you are passing on a referral..not wholesaling.  A wholesaler, as @Jon Holdman  said, has "control" over the property.  That means you make "an offer the seller can't refuse", you have it under contract, and then you are passing the control of that contract to someone else.  If/when you have control of the property, why in the world would you not want to tell the person you are selling the contract to what the address was?

@Barbara Long   as @Karyn T.   mentioned don't leave, some of us may be a bit harsh at times, but everyone is trying to help out. Your are probably closer then you think to a workable strategy. Some minor tweaking may be all you need to create a great wholesaling/rehabbing business. .

A lot of people will tell you that you cant find deals from the mls and wholesale them to other rehabbers. You need to determine if this is true in your area if thats the game you want to play. In our area it is not true, although plenty of locals tell me that.  If you can find great deals and get them under contract, you can double close on bank owned properties, and stay legal that way, or as @j Scott mentioned get your real estate license.  I am doing that right now to have better control over deals and tap into the commissions on the buy side as well.  

You mentioned, just rehabbing the deals. If wholesaling is your first choice, why not try wholesaling all your deals and just rehab if you cant sell them.  That is what we do with many of our deals, some of the best deals we keep for ourselves, but I I don't buy any deals that I would not rehab myself.  

Wholesaling is a significant portion of our business and one that we will will be pushing a lot more this year. We have had seven mls offers accepted since January and we wholesaled five of them to other full time rehabbers who know their game very well. It is not as impossible as some would have you believe, at least not in NE Ohio, and I assume there are many other places that it is possible as well if you learn to play the game well.

Good luck in your real estate adventures. 

Originally posted by @Barbara Long :

... If I could get the funding I would purchase them myself... Seems like rentals are the only thing I'm good at...

It looks like this thread has come full circle. Certainly it is a wise Wholesaler who only wants to buy/market properties that are still a good deal for THEM even if everyone on their Buyers List pikes out.  

As far as getting an advance signature on a document is concerned, how about having a 'bird dog' arrangement with your Agent whereby they agree to giving you a specific (NEGOTIATED) Finders Fee for you if it is you who sends your sourced Buyer to them?...

Keep the faith.  Cheers...

Originally posted by @Barbara Long:

 Please Please..i'm here to learn...i'm just doing what the mentor told me to do. Now I feel like an A**!

Barbara , No YOU are not an A**,  Your mentor is!!!!

Experienced investors here sadly see this too often, many an honest newbie anxious to learn is taken advantage of and given totally bogus information. Since you mentioned your mentor is in Utah, my fear is you paid good money for someone to "mentor" you. There are a ton of people here on the site ready to help you, and all for free.

This is why I hardly give wholesalers the time of day.

Either someone is intentionally being devious or they are being mislead to do these acts by others.

What you get is a lot of time wasters sending you crap.

All I want to know is if a property is truly off market and is under their control for contract.

I don't want to hear all the B.S. and schemes.

Jeffrey Gitomer an author said " People hate to be sold, but they love to buy! "

It means if you position things properly they will naturally buy rather than having to hard sell them on something. So finding out how buyers want you to present deals to them and the structure will usually help to be more successful.

Sounds like you need to "level up" to someone who knows what they are doing. It either sounds like they might be shady with business practices or they are simply not explaining the process they use to you correctly. 

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