So I'm looking to enter into real estate investing through wholesaling. My goal is to wholesale to gain "skin in the game" and network with buyers and rehabers to eventually switch to flipping as my main gig. I've started driving for dollars and searching for owners online to reach out to. While searching online I came across renew Indianapolis that is a land bank of a lot of the abandon houses in Indy. The prices they have set on their list of home range from 2-10k and the list has 900+ properties on it.
According to the renew program policies these houses can be bought, renovated and put up for sale or rented.
So I'm wondering how could I get one of these houses under contract to wholesale?
On one of the houses from the list I pulled comps around 65k. They have to house listed at 2k and say the closing cost is 800 including title search. This price is well into the 70% rule for a flipper and I could still make a fee from wholesaling it. The only real problem I see is getting approved for the program as a wholesaler. I can't show the funds of being able to buy and renovate the property needed to be approved. The only thing I could think of is referring a flipper to a certain property to flip and maybe collect a finders fee? I don't know. thoughts?
Not to be the bearer of bad news, but I don't believe it would be possible wholesale these properties. There's a process in place that requires the purchaser to submit a complete scope of work on the property before they even accept a bid on it. Also, since any flipper can find these houses on their own by searching the website, it bears the question, why would they pay you a finders fee?
@Erin Donlan is correct. I don't see the viability of referring a flipper to a property for a fee. You're only referring them to something that they have access to themselves just as you do. You would have to control the property. As a wholesaler, you should focus on getting properties under contract that aren't already available.
Yeah I kind of figured. I guess it would be useful if I had access to hard or private money to do the flip myself. I really want to start with wholesaling to build a buyers/sellers list and connect with those that are doing the type of flips I'm into. Thanks for the input!
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