New to wholesaling & want to learn more before wasting time.

11 Replies


Hello everyone , I'm new to wholesale but I bought a list of absentee owners in my state(Illinois) & before I try to get property under contract , I've been reading David Greene book "BRRRR" & taking what he said about wholesalers & try to be the opposite of that. , 1. I just need to know how to approach them to get them to sell. 2. How to find buyers & 3. What investors/buyers are looking for when buying from a wholesaler. Thanks in advance & I hope to get someone answers. If there any real estate agents , contractors, property managers, investors ,lenders who may be interested, please also comment , thanks!!

Hi Charles. Good for you for taking the first steps to make things happen. As an investor in Illinois I would be looking for deals to be presented to me with some details. Obviously the price you are looking for but also a breakdown of repair costs (rough estimate is fine but more specific the better) and ARV and how you came up with the ARV. If you present a deal and it is fairly in line with my inspection/assessment of the property you will gain my trust. I would also want to know if you are assigning the deal to me or actually purchasing it and reselling it. If I look at it and it is completely off from what you described then I probably will not consider you a credible source in the future. Obviously if you are just beginning then I will factor in a learning curve into the variances and not a one strike and you are out mentality.

Also, where are you located and what area(s) are you looking to find properties?

@Paul Brown  
Hello Paul, thanks for the reply but I am located more in suburbs area like 35 min away from Chicago & I'm looking to buy pretty much any area in Illinois & I found some possible properties that are no further then 5-15 min away from me then some others 20 plus minutes away. Also I would be the wholesaler , will find fixable SFH , run comps with a agent & find ARV then assign contract with a assignment fee.

Originally posted by @Charles Hunter :

@Paul Brown  
Hello Paul, thanks for the reply but I am located more in suburbs area like 35 min away from Chicago & I'm looking to buy pretty much any area in Illinois & I found some possible properties that are no further then 5-15 min away from me then some others 20 plus minutes away. Also I would be the wholesaler , will find fixable SFH , run comps with a agent & find ARV then assign contract with a assignment fee.

Make sure you check with your sponsoring broker and make sure they allow wholesaling

 

Hi Brie,

Can you elaborate on the legalities of wholesaling in Illinois? I know you are mainly in the city of Chicago but is wholesaling allowed in Illinois? If so what are the regulations that people need to be aware of? 

Originally posted by @Charles Hunter:

@Paul Brown  


Since the title of your post is "New to wholesaling & want to learn more before wastign time" I've stayed away from responding to these posts the last couple of years but here it goes since you want to learn more... These are all the methods we've used to sell properties that we did not intend to hold in our portfolio. Some would call it wholesaling.

1. Assigning of Contracts is a wholesaling method- You can do one assignment per year in Iliinois on your own without a real estate license. Last time I checked the penalty is $25K per incident if you get caught. (We're licensed)

2. You can put a property under contract, find a buyer, then double close. That's wholesaling. There are only a few title companies that will allow this now.

3. You can put a property undercontract, find a buyer, request the seller change the contract for a new buyer. If the seller agrees, your new buyer closes.

4. You can control a property via contract inside of an LLC, then sell the LLC. The new owner of the LLC closes on the property.

5. You can control a property via contract inside of a LandTrust. Close inside the Landtrust and change the beneficiary of the Landtrust to a new owner.

I could go on, but back to the heading of your post- "Learn more"

@Charles Hunter - Sounds like you are taking the right steps, but might need to do a little more research as @Brie Schmidt pointed out you can only do one transaction per year without your license.  I'd say keep pushing forward and find a deal while you try to get your license.

In the meantime, you could also partner up with someone who does have their license.  Either way, keep going don't let the fear discourage you keep forging forward.