Updated over 8 years ago on . Most recent reply
Hello real estate investors
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Hello and welcome to BP! I am not from Washington but a Texan would like to assist you. I was in the construction business from age 17 to 54. I also am a college degree holder and I am now 60 years old and I had a real estate broker license for about 30 years but never used that on a full time basis. I found this website about 21 months ago while medically recovering from some serious issues. For the last 21 months I have been studying on this site, YouTibe, and reading books about 10 hours a day (7 days a week)) since I now cannot walk and have been stuck at home.
I tend to say too much but there a few things you should consider after you select your niche and market are but before you start making offers. It is fairly decided your niche because when wholesaling you might be a learned person in a few industries. Until you meet a friend I would be able to assist you with my experience on anything you think I could help you with. The first thing I will lay on you is torn some type or corporation or a LLC. You might want to hire an attorney, and/or a CPA, and/or a tax consultant to advise you on the way to go. Among other things you might learn, it will make your personal items "out of reach" from a person who might sue your business or other legal items.
The next thing you might consider is getting your finance figure out. Your lender can supply you with a loan letter that states the average time it will take to close your loan and the maximum amount you qualified for. Hopefully a copy of that letter submitted with your offer will give the owner a little bit of comfort in knowing that you will be able to close. Since cash buyers (about 25%) will have more competition. The final thing I will tell you is to consider a location for your new business. It needs to be convenient and have minimal distractions in the now office location.
Try to stay in control or what yo are responsible for until you have trust in others. Do not assume something will happen if not done by you. There a few other marketing things you ave not done yet. "Knocking on doors" is a way that sellers that occupy that home may not have gotten motivated since y'all talked."Driving for dollars" that looks for unoccupied units and is behind on lawn maintenance or has newspapers stacked up by entry doors. Things that exists when the utilities are cut off or something else that makes a house look unoccupied. You can also make notes on any "for rent" signs or FSBO signs.
Depending on your budget or find a birddog that is willing to wait on getting paid for those they inform you on until the deal closes. I have heard that hand-written letters to owners can be effective. Try to find a lender that will close you quickly to help you close quicker so you can compete with the cash buyers. I have also heard there would be less competition on houses which has much work to do on the properties to rent or sell. Prorated homes usually have a garage sell first and could be a good lead.
Do not cut any corners on your estimate to make something look good on paper that you cannot meet that physically when done. Track all of your expenses in report form that you can review regularly with people you trust and know your goals. Your goal here is to reduce your expenses oand/or increase your income. Do not try to do everything yourself.Hire out things you do not know or do not like to do to local and experienced people that can help you build up a Team.
The primary Team members are typically Attornies/Lawyers, real estate Agents/Brokers, a CPA ( or accountants you trust), Inspectors, Property Managers, General Contractors, and Handymen. Always remember to do the math analysis and try to look at the prospective properties before you make an offer or at least have a clause in the salas contract to I've you some upfront time (usually 10 days) to make a detailed inspection and possibly back out of the deal without a penalty that will hurt you too much. I think I have said enough until another opportunity comes up.
Good luck to you!