Jeremy here from Utah County.
I’ve been doing a ton of reading and studying about investing for a while now and I’m excited to get started. BiggerPockets seems like a fantastic community of investors.
I’m leaning towards wholesaling to start out but I’ve heard that’s difficult in Utah but also possible. I’ve also read some posts about some new stricter laws in regards to wholesaling and I’d really like to learn what I can and can’t do and which title companies are the best to work with, or if that makes a difference. I’d really love to fix and flip and buy long term rentals but I just don’t have the cash yet and I understand that hard money lenders are very expensive for new investors.
Any tips or legal advice for this area would be very helpful!
Thanks in advance!
Hows it going? Im new to the real estate game out here myself and went on meetup.com to attend events related to real estate investing. Theres quite a few going on in SLC and surrounding areas. Maybe ill see you at one or two in the near future.
Welcome to bigger pockets. Few things I would advise. Most of the major REIA's will have title company's that sponsor them. Start there. Many realtors and title companies will tell you that you can't do them, they just don't understand how. Start calling all your local title companies and ask if they will do a closed doc assignment and if they will do a dry double close so you don't have to use transactional funds to close. Our title company will allow us to do a dry double so long as we inform the seller that their funds are coming from a third party.
Tie, great info. Thank you.
Hi, I am just starting out investing in Utah also, but I've been an agent for a while. The REIA has some good meetups and do a meeting specifically on wholesaling regularly. Its a little tricky here especially if you find stuff on the MLS with the market as hot as it is.
Hi Jeremy, I'm a rehabber and wholesaler in utah. You are right that it is competitive and tough starting out, but you can do it. If you don't have much money to start, try driving for dollars, putting out bandit signs, and some other more time-extensive/cheaper methods. As for hard money lenders, they are more expensive than private money for sure but if you get a good enough deal they will happily lend to you. You usually have to have some skin in the property in order for them to lend to you. Some will fund 100% of the purchase and will require you to have the rehab funds. To close, We use Elevated Title in Draper to close our deals; flips and wholesales.
@Kyle Pierce I appreciate the info. I've seen quite a few distressed properties around so I plan on starting there and seeing how it goes. Are there any laws I should be aware of before I start closing wholesale deals? Also, what's the best way grow a good list of cash buyers?
@Jeremy Eisenstat I wouldn't worry too much about the laws honestly. Go out there and start sending mail or writing letters to distressed homes that you find and start getting your phone to ring. Start setting up appointments and put houses under contract (this can be a simple one page contract that shows who's buying, who's selling, the address, the amount, any other terms, and signatures. After you get a house under contract take it to your title company and they will take care of the rest. When you try to market the property to your buyers, just be careful how you phrase things. Just say you have an assignment contract that will allow you to buy the property at xxx address, we are selling our right to purchase this contract. Or something like that. Mainly, focus on being honest and real with sellers and seeing how you can help them.
There are plenty of ways to build a buyers list. If you have access to the MLS you can search for any homes that sold for cash and call/email those buyers and ask if they would like to be added to your buyers list. Go to the REIA meetings/meetups and take down everyone's email and phone number. Some REIA's even send out the guest list which has everyones contact info. Then just start talking about what you do with everyone and you're buyers list will grow over time. You can also build a website and do some SEO so potential buyers can find you and ask to be added to your buyers list. Going to the REIAs and Meetups is definitely the easiest way to build your list starting out.
@Kyle Pierce good info. Does talking to neighbors of a distressed property help to get info or are letters better? And how do I find out about meetings or get togethers with these groups? I’ve been looking around on a lot of different sites and pages and haven’t found anything.
Definitely doesn't hurt to talk to the neighbors. They might have the owners phone number that you could call and then contact directly rather than sending a letter. As far as meetings, you can go to the slreia and utahreia websites and you should be able to find out times they meet. You can also look up Jeff rappaport on bigger pockets. He's always posting when the meetups are.
I am new to Bigger Pockets and i am looking to network with fellow like-minded individuals as well. I can not find any Meet-ups or any community within Utah/SLC area. Lets connect and meet up! i know i could learn alot from you guys.
Hello! @Jeremy Eisenstat
Welcome to BP, and congratulations on making the decision to invest in your future via real estate.
I have written a few blog posts that may help you get started here on BP, and with your investing. Please click on the links, give them a read, and share your thoughts in the comments.
First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:
The second is a post that will help get you focused with your real estate investing goals:
The last one is a post that will help you choose an “investor friendly” real estate agent. There are many agents out there, but it’s important to choose the right one.
I love answering questions if you have any! Good Luck :)
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you