buying wholesale deals

12 Replies

Hi Everyone,

If you are new to the real estate investing world of fix and flips and rent and holds, The key to making money is buying right. When purchasing an investment property, due diligence is very important. Understanding the deal and the spread you have to work with is what makes it a great deal. Buying from wholesalers is a great way to find off market, highly discounted properties at a great price. Im in the South Florida market and there are so many deals out there. Ive learned so much along the way, and im happy to help anyone in BP. :)

-Angi

Originally posted by @Angie Stephens :

Hi Everyone,

If you are new to the real estate investing world of fix and flips and rent and holds, The key to making money is buying right. When purchasing an investment property, due diligence is very important. Understanding the deal and the spread you have to work with is what makes it a great deal. Buying from wholesalers is a great way to find off market, highly discounted properties at a great price. Im in the South Florida market and there are so many deals out there. Ive learned so much along the way, and im happy to help anyone in BP. :)

-Angi

 Are you a licensee?

@Nick C. Curious as a new wholesaler, what are you seeing that isn't making the properties, you see put through daisy chain emails, actual deals? Anything that I can change as a new wholesaler in my tactics of finding the right property would help me help you? Are they buying to high, bad terms, locations, etc. For my purposes, since I see a lot of not doing their due diligence. I'm in central florida if that helps.

Generally speaking they are getting properties under contract for any price the seller will take regardless of whether or not it's a deal. Then fudging the repair costs and ARV and hoping to find someone willing to overpay, either from desperation or lack of experience.

@Christopher Lyons
Ahh the wonderful world of wholesaling... This latest market cycle has been the season of the wholesaler, everyone and their brother "jumping in" to this arena having no clue how to spell ROI in oh so many cases. Greed is in abundance and most deals are not deals at all. Assignment fees are ridiculous and while buyer beware should always be our mantra, even more so now. The Central Florida corridor is filled with over zealous wholesalers capitalizing on the abundance of investors from China Brazil and the UK seeking opportunity and are sitting "ducks" for these predators. I see this daily from my perch as a local lender and its only when I break down the deal for these unsuspecting investors do they see the "light". It is comical in many ways, I saw two of our properties on 3 wholesalers lists whom I don't know, and marked up an additional 18k...

Separate yourself from the herd Christopher, know your numbers, know your market, if you build your buyers list appropriately you will be able to sell your offerings even before you lock them up.  Run your business with the integrity you have operated with as a Fireman and it will serve you well.  Thank you for your service.

Originally posted by @Sam Ally :

@Christopher Lyons



Ahh the wonderful world of wholesaling... This latest market cycle has been the season of the wholesaler, everyone and their brother "jumping in" to this arena having no clue how to spell ROI in oh so many cases. Greed is in abundance and most deals are not deals at all. Assignment fees are ridiculous and while buyer beware should always be our mantra, even more so now. The Central Florida corridor is filled with over zealous wholesalers capitalizing on the abundance of investors from China Brazil and the UK seeking opportunity and are sitting "ducks" for these predators. I see this daily from my perch as a local lender and its only when I break down the deal for these unsuspecting investors do they see the "light". It is comical in many ways, I saw two of our properties on 3 wholesalers lists whom I don't know, and marked up an additional 18k...

Separate yourself from the herd Christopher, know your numbers, know your market, if you build your buyers list appropriately you will be able to sell your offerings even before you lock them up.  Run your business with the integrity you have operated with as a Fireman and it will serve you well.  Thank you for your service and if my I or my team can help you don't hesitate to reach out. We're in Orlando as well. 

Predators...how true. Their prey is unsuspecting uneducated sellers being misled into believing their house is sold and then these frauds and scammers use BS escape clauses when they can't find a buyer.

 

@John Thedford yes the homeowner/seller is prey as well but not just from the wholesaler but from more familiar names like Zillow and Open Door and all others to follow.  In general, our nation is financially illiterate so between the predators and sellers lack of knowledge that is a disastrous cocktail 

@Nick C. And is this the technique that leads people to come up with nonsense escape clauses, like John mentioned,  which screw over not only the homeowner but people like myself trying to deal in honest transactions? It sounds like much more work and stress than it would be by just doing it the right way. I've found this with a few properties leads I've called and got harshly rejected and rightfully so from their past wholesaler experience, Thanks man.

@John Thedford This is, if remember correctly, the exact reason Illinois changed their Wholesale laws bc someone conned a political leader's family member into selling the house for much lower than someone educated about the price would accept. Scumbags. I'm here to try and keep the reputation pure and learn some cool things and meet some great people along the way. You sent me the Statute for anyone unlicensed dealing in RE which I am taking my state exam at the end of the month. So thank you. 

@Sam Ally That's incredible, it takes so much more work to con someone than to do it the right way. I would love to see how you break down the numbers for investors for my knowledge and gain insight into what their preferences are. 

Thank you for the insight gentlemen and if any of you are free to get coffee or lunch (on me of course) it'd be very very much appreciated.