Wholesaling as a college student in Pensacola...help!

Member since 2018 · 37 posts · 12 votes

Hey guys, this is LeAnna. I am a college student in Pensacola Florida at Pensacola Christian College. I am brand new and don't even have one deal under my belt. I have talked to a real estate agent who said that wholesaling is my best way to go for my first deal since it requires no money down. I have noticed a couple houses for sale on facebook. I don't know if facebook would be ok to start looking on or are there other places I can look. Houses for sale by owner are harder to find. I have looked through a couple fsbo websites and only found two really expensive houses for sale. What would you say to a newbie who hasn't even started? I want to graduate debt free and want to have done at least a couple deals before I graduate. Is this unrealistic? How can I be sure I am doing everything right??

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Jeremy VanDelinder

Real Estate Coach · Round Rock, TX · Member since 2015 · 431 posts · 235 votes

@John Thedford This is a COMMUNITY for real estate INVESTORS. If you can't conduct yourself as one in a community and your primary interested is curtailing real estate investing, perhaps you could find another place to air your grievances.

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Tiffany Milan
Egg Harbor City, NJ · Member since 2018 · 43 posts · 26 votes
7y
@John Thedford
Another thing, the guy that I quoted is not locked up or in trouble. He is a member of BP and has been since he made that statement, so I don't know what you are talking about.
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Caleb Heimsoth
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y
Originally posted by @Tiffany Milan:

@John Thedford
Another thing, the guy that I quoted is not locked up or in trouble. He is a member of BP and has been since he made that statement, so I don't know what you are talking about.
Wow this thread went no where lol. Legality aside, it takes money, and immense skills to be a wholesaler because you need to be good at every aspect of real estate. For this reasons and others I don’t recommend wholesaling to newbies
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Tiffany Milan:

Again you are not an attorney. As I said before I am pretty sure that there are successful wholesalers in FL. She just has to find out the loopholes. She never even mentioned listing any properties so I don't know where you are getting that from. I gave her a list of places to look for deals, that is not bad information. Again, I don't know why you are trying to discourage her, but becoming a thriving wholesaler in FL is possible.
as a funder of deals i can tell you the bigger successful folks that sell fixer uppers are licensed.. you may call them wholesalers but they have licenses.. just say in.. attorneys don't make the laws they argue them.. read eh statutes its pretty clear.
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Tiffany Milan
Egg Harbor City, NJ · Member since 2018 · 43 posts · 26 votes
7y
@Jay Hinrichs I don't need to read statutes because I don't live in FL. I was answering the girl's question. Whatever you say. I never said whether she should or shouldn't get licensed, I told her to talk to an attorney. I'm pretty sure he can tell her how the laws adhere to wholesaling. Yea they might argue the law, but they can damn sure tell you how to go about pursuing -and how NOT to go about - starting your wholesale career
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
7y
Originally posted by @Tiffany Milan:

@Jay Hinrichs I don't need to read statutes because I don't live in FL. I was answering the girl's question. Whatever you say. I never said whether she should or shouldn't get licensed, I told her to talk to an attorney. I'm pretty sure he can tell her how the laws adhere to wholesaling. Yea they might argue the law, but they can damn sure tell you how to go about pursuing -and how NOT to go about - starting your wholesale career
I offered the name of an attorney. You can lead a horse to water but....you can't make them think (sic)
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Tiffany Milan
Egg Harbor City, NJ · Member since 2018 · 43 posts · 26 votes
7y
@John Thedford I don't know if you were talking to me with the insult, but we clearly are not on the same page. Please stop mentioning me in your comments, so they will stop alerting me. I don't care about your opinions. I was clearly answering her question, so unless your name is LeAnn Davis we have nothing to talk about.
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
7y
Originally posted by @Tiffany Milan:

@John Thedford I don't know if you were talking to me with the insult, but we clearly are not on the same page. Please stop mentioning me in your comments, so they will stop alerting me. I don't care about your opinions. I was clearly answering her question, so unless your name is LeAnn Davis we have nothing to talk about.
I posted for her benefit and you chose to address MY information, questioning it, etc. SO....get over it.
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Jeremy VanDelinder
Real Estate Coach · Round Rock, TX · Member since 2015 · 431 posts · 235 votes
7y
@John Thedford This is a COMMUNITY for real estate INVESTORS. If you can't conduct yourself as one in a community and your primary interested is curtailing real estate investing, perhaps you could find another place to air your grievances.
9 Reply
Blake Walsh
Huntington, NY · Member since 2018 · 12 posts · 6 votes
7y
@LeAnna Davis Hey LeAnna! I’m also a full time student, and I have similair goals. Since were in a similair position maybe my plan can help you. My plan is to purchase a rental before graduation by leveraging finances from a private lender (rather than a live in fha loan). From there I will probably use a heloc to buy another then double my properties annually like Brandon Turner talks about in his free course. This site is great for education. Find a method that will suit your goals and commit! If you stick with wholesaling or pursue another method I wish you goodluck :)
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
7y
Originally posted by @Jeremy VanDelinder:
@John Thedford This is a COMMUNITY for real estate INVESTORS. If you can't conduct yourself as one in a community and your primary interested is curtailing real estate investing, perhaps you could find another place to air your grievances.
Operating illegally is NOT investing. Actually, neither is "wholesaling" for that matter. The OP asked a question, I answered, then got hijacked by some wanting to inject poor and illegal suggestions into the thread. No apology here. The person does not even live in the state and apparently has NO knowledge of the laws in this state. They want to push the idea that somehow, the OP can get around state laws. BAD IDEA.
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LeAnna Davis
OP
Member since 2018 · 37 posts · 12 votes
7y
Hey guys- as a college student I have been in classes all day and have missed some of the fun. @Tiffany Milan thankyou for your feedback. I am definitely still doing research and am glad at all the useful feedback I have been reading. @John Thedford thankyou for your feedback as well. As I stated earlier I am not trying to do anything illegal. I have talked to others outside this forum who have the knowledge you do and it is not illegal to put a house under a contract stating you have power to assign if the seller agrees in writing. I will still look it up though- I am not a horse and this is a professional community site.... just saying.
Also, I am not doing flips just yet so a fixer upper is not technically the wholesale deals I am refferring to. If you have anything you need to say feel free to inbox me John Thedford. Thanks for everyones feedback
1 Reply
LeAnna Davis
OP
Member since 2018 · 37 posts · 12 votes
7y
@Blake Walsh Hey Blake! Welcome to the broke college club. I have considered that.... but not in such detail. My problem is I would not be able to qualify for a loan because at this college they only allow me to work on campus. And everything I earn goes into the college fund. Are you hoping to use the rental's income to pay the monthly payment (and maybe have a bit extra)? How many years are you talking?
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LeAnna Davis
OP
Member since 2018 · 37 posts · 12 votes
7y
@Matt Jones hey just to let you know I have know about PIG for a while. Problem is I don't have a car to get there. Also I work at the college that shift. I am trying to get that Tuesday free though. I won't be able to make tonight's though but still plan on checking it out.
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
7y
Originally posted by @LeAnna Davis:

Hey guys- as a college student I have been in classes all day and have missed some of the fun. @Tiffany Milan thankyou for your feedback. I am definitely still doing research and am glad at all the useful feedback I have been reading. @John Thedford thankyou for your feedback as well. As I stated earlier I am not trying to do anything illegal. I have talked to others outside this forum who have the knowledge you do and it is not illegal to put a house under a contract stating you have power to assign if the seller agrees in writing. I will still look it up though- I am not a horse and this is a professional community site.... just saying.
Also, I am not doing flips just yet so a fixer upper is not technically the wholesale deals I am refferring to. If you have anything you need to say feel free to inbox me John Thedford. Thanks for everyones feedback
You missed my point or I missed yours. A seller CANNOT give a buyer the right to advertise a property under contract. That is a violation of brokerage laws. Most contracts are assignable. I ALWAYS make mine assignable so I can choose how I want to take ownership. The assignment clause was never meant as a workaround of brokerage activities, and the people I posted links on above had assignable contracts but were advertising the properties. I do suggest you get familiar with 475.42 and 475.43. It might be worthwhile to get your license. This opens a LOT more doors, and allows you to market properties under contract as well as take listings or represent buyers.
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Pamela Bunkley
Rental Property Investor · Houston, TX · Member since 2018 · 37 posts · 12 votes
7y
@LeAnna Davis I'm new to the realestate world myself, but I do know Facebook is NOT the way to get started, too many scammers! You're doing the right thing reaching out to local agents and joining this group. Keep doing your research and stay focused. Good luck!
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LeAnna Davis
OP
Member since 2018 · 37 posts · 12 votes
7y
@John Thedford I am buying FSBO properties. In other words they can do what they want with their own properties. If you have questions feel free to inbox me.
1 Reply
Blake Walsh
Huntington, NY · Member since 2018 · 12 posts · 6 votes
7y
Originally posted by @LeAnna Davis:

@Blake Walsh Hey Blake! Welcome to the broke college club. I have considered that.... but not in such detail. My problem is I would not be able to qualify for a loan because at this college they only allow me to work on campus. And everything I earn goes into the college fund. Are you hoping to use the rental's income to pay the monthly payment (and maybe have a bit extra)? How many years are you talking?
Broke college club tall and proud haha. I can't qualify for a loan, either. This is why I would pursue a private lender. Im focusing on building a long term foundation and automating a business for rental acquisition to free up time to get into flips. The plan for rentals is to pay off rent and school present day and build long term wealth! As long as the cash flow from the 1st property exists and makes sense for a private lender, all you need is 1 person to give you a shot to prove yourself. And, everyone started somewhere, right?
1 Reply
Bill F.
Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
7y
@LeAnna Davis
You and @John Thedford are taking about different parts of the wholesaling process.
You are at the beginning: lead generation leads of potential proprieties to get under contract. John is talking about what you can and can't do once you have a property under contract.
In FL you can not advertise a property that you do not hold title to; John provided the statues. (sure equitable interest may or may not hold up to judicial scrutiny though, from a business perspective, hanging your hat on this legal theory seems unwise)
Being a broke college student who had no experience and wanting to do everything right, you'll have a hard time assigning these contracts since you don't have an established list of buyers who trust your judgement or some other way to demonstrate your expertise. All you have is the underlying merits of the property and the contract price, which you can't use!
That is the whole issue with wholesaling, never mind that it is a full time JOB that takes a wide range of skills and capital.
Focus on school so you can get the best job you can upon graduation and have plenty of excess capital to invest in RE when you are working.

1 Reply
Pamela Bunkley
Rental Property Investor · Houston, TX · Member since 2018 · 37 posts · 12 votes
7y
@Tiffany Milan well said. All of these valuable options are good avenues to try to find leads. I'm not sure where or why the conversation turned towards the illegal aspects of selling a home that is not yours..., but it is important to state that "yes", you must have a signed agreement or contract with the owner before you post ny advertisement or anything else referencing selling a property..
0 Reply
Kate J.
Rental Property Investor · Austin, TX · Member since 2016 · 294 posts · 104 votes
7y
@LeAnna Davis you are in college. You are paying a lot of money to get the degree. If you start to do something else during the education, you will get bad grades. Make yourself a favor, get the degree first. You can work on your debt after you graduate. Being a prof in a top school of US, and investing in RE, I can tell you it's not worth to come to RE without money. You will spend too much time to close a deal. Even if you close it, it will not pay all your tuition and fees. You degree eventually will bring you more pay per hour than any wholesaler job. People do wholesale, but usually the deal comes very rarely. Dont expect on anything in the first year or so. I cant stress more: prepare for your midterm instead of hanging here.
2 Reply
Joe Johnson
Real Estate Broker · Frankfort, KY · Member since 2017 · 1 post · 1 vote
7y
@John Thedford, you tried to help. That's all you can do.
1 Reply
LeAnna Davis
OP
Member since 2018 · 37 posts · 12 votes
7y
@Blake Walsh: would you do owner financing?
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LeAnna Davis
OP
Member since 2018 · 37 posts · 12 votes
7y
@Bill F. Hey thanks- that made a lot more sense than what @John Thedford was trying to say. Also I think you did a more professional job. Thanks for clarifying.
0 Reply
Pamela Bunkley
Rental Property Investor · Houston, TX · Member since 2018 · 37 posts · 12 votes
7y
@Caleb Heimsoth, WOW!! Thank you Caleb for stepping up and in this conversation. It was getting really harsh... I thought the purpose of BP was to be supportive and informative.. speaking as a newcomer, reading this thread would make any new comer nervous to post a comment in this group...
2 Reply
Pamela Bunkley
Rental Property Investor · Houston, TX · Member since 2018 · 37 posts · 12 votes
7y
@Jeremy VanDelinder Well said...
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