Hello everyone, I am new to the business!
Wholesaler · Summerville, SC · Member since 2011 · 7 posts · 0 votes
Hello fellow investors, my name is Angel Verdejo and I was referred to this site by a seasoned investor.
I am new to the business and I am hear to learn and ask lots of questions. I spend a couple of hours yesterday reading post and taking notes. I am very excited to learn from both your mistakes and your successes.
My hopes and dreams are to become a successful investor and fire my boss! I will be checking in quite often to read your post and place my own as well.
One question, is it easier to start with REO or Wholesaling?
Angel
Hey Angel,
What Jon is saying is that you can wholesale a property you put under contract directly with the bank (REO). Wholesaling is broader in the sense that you can wholesale a property you get from just about anywhere; the only thing that changes is how much time you have to reassign the property. For instance, if you put your neighbor's property under contact and set a 30 day inspectionary period (an inspectionary period is basically the amount of time you have to inspect the property before transferring your funds to purchase it) then you have 30 days to market and assign the property to another buyer. If you put the property under contract directly from a banking institution (REO) the majority of the time you will be given an inspectionary period of 10 days or less (or at least in my experience). This means that you only have 10 days to market and reassign the property to a new buyer before you have to purchase the property yourself.
A great way to start is to set up a wholesaling website, then find other wholesalers, contact the other wholesalers and ask them if you can co-wholesale with them. If they are true wholesalers they will almost always say yes. Then list the properties they have for sale on your site (bumping up the price a little bit, for instance, if they want 59k then you list is on your site for 63k). Then market your site ( mailers, PPC, SEO, and all that jazz). When a person contacts you to purchase a property, you say, "Okay perfect, let me check with my partner to make sure that is still available and I'll get right back to you". You then check with the person you are co-wholesaling that property will. If they say the property is still available then you put the property under contract with them, and then turn around and assign it to your buyer at the slightly higher price.
This isn't very detailed as to how everything would proceed, but it may give you an idea of how you could get started without having to put out any money.
Thanks for reading,
Josiah
Welcome to the site, Angel.
That's sort of an apples and oranges question. REO just means a property is owned by a bank after being repossessed. What you do with it after you buy it is up to you.
Hey Angel,
What Jon is saying is that you can wholesale a property you put under contract directly with the bank (REO). Wholesaling is broader in the sense that you can wholesale a property you get from just about anywhere; the only thing that changes is how much time you have to reassign the property. For instance, if you put your neighbor's property under contact and set a 30 day inspectionary period (an inspectionary period is basically the amount of time you have to inspect the property before transferring your funds to purchase it) then you have 30 days to market and assign the property to another buyer. If you put the property under contract directly from a banking institution (REO) the majority of the time you will be given an inspectionary period of 10 days or less (or at least in my experience). This means that you only have 10 days to market and reassign the property to a new buyer before you have to purchase the property yourself.
A great way to start is to set up a wholesaling website, then find other wholesalers, contact the other wholesalers and ask them if you can co-wholesale with them. If they are true wholesalers they will almost always say yes. Then list the properties they have for sale on your site (bumping up the price a little bit, for instance, if they want 59k then you list is on your site for 63k). Then market your site ( mailers, PPC, SEO, and all that jazz). When a person contacts you to purchase a property, you say, "Okay perfect, let me check with my partner to make sure that is still available and I'll get right back to you". You then check with the person you are co-wholesaling that property will. If they say the property is still available then you put the property under contract with them, and then turn around and assign it to your buyer at the slightly higher price.
This isn't very detailed as to how everything would proceed, but it may give you an idea of how you could get started without having to put out any money.
Thanks for reading,
Josiah
Thank you so much for the replies, this is very helpful and it gives me a starting point. Josiah, thanks for the input. I will start researching asap. See you in the forum.
Angel
I am new to the business and I am hear to learn and ask lots of questions. I spend a couple of hours yesterday reading post and taking notes. I am very excited to learn from both your mistakes and your successes.
My hopes and dreams are to become a successful investor and fire my boss! I will be checking in quite often to read your post and place my own as well.
One question, is it easier to start with REO or Wholesaling?
Angel
Welcome Angel...
I see your in a hot market.. I've heard some good stuff about South Carolina as far as investing goes..
One thing I'll tell you to remember is to not let emotions run your business... Understand where people are coming from and do everything you can to help them but at the end of the day, if you dont contract a home at the right price, they you won't be able to sell or make a profit (or may a good profit) in the end.
It's better to be real with sellers and let them know just what's going on in their area. Do your research. Give them a fair offer. Whether they accept or not is on them. Dont be scared to lose a deal just because you dont want to hurt their feelings. You have to get it at the best price or you both lose.
They dont get the cash for their home and you lose a deal.
Hope this helps my man...
Hey Dennis, thanks for the tip. Charleston is a very hot market, this town is booming with new construction and now that Boeing set roots here and Southwest airlines also opened up, people are starting to buy homes here.