I went to a 3-day Real Estate Investing seminar and I an considering starting my real estate investor strategy by doing wholesaling. The seminar representative gave me a list of U.S. banks and I need to contact them and ask for a list of distressed properties and go from there.
They provided me with a formula and if there is enough profit ($30K-$40K) then I need to approach an investor that is eager to take on the flipping opportunuty.
I need to know what is the potential of success using that method?
Please indicate the reason(s) why I should or shouldn't try and also indicate how I should proceed.
Thank you for your input!
Getting started in wholesaling can be challenging for many, getting started in doing remote wholesaling seems like an even larger mountain to climb. Not to dissuade you from what you want to do but I would encourage you to become familiar with the process in your own locality first.
One of the points that I've come across during my reading, is that banks are hard to work with when getting financing for distressed or bank-owned properties. I'm starting out myself, and I have no money (literally) or credit. I am finding properties by Driving for Dollars. I tell everyone I know that I am looking for vacant or unkempt properties, or properties that have been on sale forever. I have gotten three leads so far. Give it a try!
Best of luck,
@Serge Bertossini welcome to BP. You will absolutely find the answer to all your questions here. I suggest you listen to some Podcast on the topic. There's some really good info there on how to find deals. To give you a very basic quick overview: Most of the time you pick an area and start a mail campaign. Most wholesalers target properties with out of state owners with 50% or more equity. They look to get the property at 70% after repair value (ARV) minus repair cost and minus any liens on the property. If you did some searching on here you would come up with a a lot of stuff to help you along from finding the properties to finders buyers and putting deal packages together. I've yet to hear any wholesaler say they find their properties from the bank. I'm not a wholesaler so this may be possible I just haven't come across it in my reading here.
Spend a lot of time reading here and you will get a very good feel for how it all works.
Anything else you need just ask.
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