Is Reia really good or not worth it ? And i am wanting to start wholesaling any advice

23 Replies

So as i said in my title i am looking to join my local REIA but i wanted to see if it is worth it for one . And also i am wanting to get more involved in wholesales to get the capital to one day get into rehabs. But i am still a little confused on the under contract part without paying for the property . So my first question is you get the property under contract? Then what do you pay them the money if you cannot sell it in how long ? How many days is most contracts. How do you not need a real estate agent to sell the property ? I have a few people locally who send me their homes under contract and i have a small group of guys looking to invest in the right property and i just need helping connecting the dots so i can start making capital off the deals.

Thanks

@Alex Holt joining your local REIA is one of the best things you can do to jump start your investing career. You can shave a lot of time off your learning curve and the networking and relationships you form will have you in the game in no time.

In general, its best to either A: Already have a list of buyers so that you can move the property quick, or B:  Have access to funds so that you can pickup the property if you are unable to move it to someone on your list of investors.  In the case that you cannot find an investor, you would lose any earnest money that you put down, but in general wholesalers do not do this.  However, you don't want to be the guy going around writing contracts, but never closing on them.  Always have an exit strategy. 

I write my contracts to close within 30 days or less.  This should be enough time for you to move the property and is pretty standard.  You do not need an agent to close.  Anything that needs to be done is done simply with you, your buyer, seller, the contracts and your closing attorney. 

Check out this recent blog post.  http://www.biggerpockets.com/renewsblog/2015/08/04/process-wholesaling-housesassignment/

Good luck!

Skipped over this part, but your contract should also have an inspection period of 10 to 15 days.  During this time, IF you decide to put earnest money down, you would be able to get it back if you decide not to do the deal, or you are unable to find a buyer. 

thank you all for the knowledge I am working on building my buyers list before I send out or try and get deals . 

One question I do have for everyone is what is the typical profit for a good deal ? Bad deal ? And great deal ? 

Also real estate attorney are they expensive for wholesalers what exactly would we use them for just draw up paper work ? Can't we just have them do it once and use templates ? 

@Michael Hayes thanks I plan to go to my local reia tomorrow actually they have an event I would like to see what it is all about . 

@Alex Holt I know some wholesalers who will not do a deal unless they make a minimum of $5000.  I think this is more of a personal preference though.  I'll gladly accept $1500 for a quick flip in a day or two, or even $500 for a house that may not be worth more than a few thousand.  I think a lot of money is thrown away for wholesalers trying to only go for the huge profits.  Those quick flips add up quick though.  A lot of this depends on your local market as well.

You as the wholesaler generally won't have to pay anything for the attorney if you use an assignment contract.  That's the contract we use to give our rights to buy the house over to someone else.  If you double close, then you're looking at paying closing costs.  There are a few articles on the difference between these two closing methods on the site as well. Fees differ from attorney to attorney.  The attorney handles the legal side of everything to transfer the house over to the new buyer.  Once paperwork is submitted to the attorney, you basically wait on the check. 

got it will do my research and read more .

I do appreciate the help . Really comes in handy when you don't know where to turn 

No problem. Good luck on the first deal.

@Michael Hayes thank you would you tell me about your first deal how you got it any tips it's always good to hear those stories for help . 

I would do as @Michael Hayes says for sure go to your local Reia group Try to find as many buyers as you can,then go find what they will buy 

if you put properties under contract to wholesale I would tell seller exactly what your plans are in case you can't find a buyer or just close yourself and then resell 

Good luck @Alex Holt

@Mark Brogan exactly.  Many wholesalers come off as shady when they present themselves as cash buyers but don't disclose what they really do.  If you plan on buying it, great, but I always let my sellers know that the house will be presented to a list of investors who all pay cash and close quick.  I've never had a seller to complain or say no if I tell the truth and they are motivated.

@Alex Holt my first deal was actually found by driving for dollars after taking a wholesale class through our local REIA. The very next week or so, I found an investor who had a FSBO sign in his front yard. We chatted about what he was looking for, I told him what I do, and we did a contract. The first one was by far the longest deal I had. My pricing was off and my buyers list wasn't interested in the area, so I had to crank up the campaign to find buyers. May have taken me close to 2 months, or maybe a little less. He understood that I was sincerely trying to help him and working hard on his behalf, so we got through it. Finally found a cash buyer, closed on it, and he was happy with how it went after he had not been able to sale the house for months.

Welcome to BP, Alex!

You really need to do some reading on BP. 

You also need to learn real estate before jumping into dealing in real estate!!!!!

Reading strategies and blazing off on your own is a good way to find trouble and lose money. 

And, always know who a buyer is before contracting, you need to know what properties to look at, which ones to pass up and how to do things up front and ethically.

REAI groups are franchise operations, some a good, some fair, some are pretty bad, they might be a good place to meet others, they can be the wrong place to learn, depends on who you talk to. Best of luck :)

@Mark Brogan thanks for the advice I try that in my landscape business and it seems to help me landscape jobs . 

@Michael Hayes nice story did you make a decent profit ? Also when you do a property in wholesaling if you don't double close you won't need anything to do with a title company or title services ? 

Welcome to BP Alex! You're definitely in the right spot to learn any and everything about wholesaling or real estate in general. Your local REIA meeting can either be a good experience or a bad one but you will never know until you attend one. It took me forever to go to a REIA meeting but when I finally attended one, it changed my whole thought process.

@Bill Gulley thanks bill I will keep that in mind moving forward ..

@Lorenzo Gilliam thank you I am going to one today I want to see what it's all about before I start spending money on getting into the group but I am glad the advice I am getting seems like it should help 

@Alex Holt

 I noticed that you said you were waiting to build your buyers list before you started with an execution plan for wholesaling. You don't have to worry about that, my friend.  I know some people will tell you that you need a buyers list first but they are WRONG!!!  

Sure, you can start building a list of people that want to buy houses, but theres no methodical way to market for this. Instead, focus on generating motivated sellers and negotiating killer deals.

Once you have that part in motion, finding a cash buyer for your deal will be NO PROBLEM at all. Don't get steered in the wrong direction trying to worry about some dumb buyers list.

@Tracy Caywood

Thanks I will try that way and see what happens 

Originally posted by @Alex Holt :

So as i said in my title i am looking to join my local REIA but i wanted to see if it is worth it for one . And also i am wanting to get more involved in wholesales to get the capital to one day get into rehabs. But i am still a little confused on the under contract part without paying for the property . So my first question is you get the property under contract? Then what do you pay them the money if you cannot sell it in how long ? How many days is most contracts. How do you not need a real estate agent to sell the property ? I have a few people locally who send me their homes under contract and i have a small group of guys looking to invest in the right property and i just need helping connecting the dots so i can start making capital off the deals.

Thanks

 Hi Alex,

You are in Cincinnati OH, 

OH has a quandary about wholesaling. Go here....

http://www.meetup.com/CincinnatiRealEstateInvestor...

See these videos from Attorney Jeff Watson.  OH RE Regulators want wholesalers to abide by the code.  See...

https://www.youtube.com/watch?list=PLASIT_lNqzXlrN...

get a "I BUY HOUSES CARD", 

go network, 

find transactional funding if cash buyers can't buy, that should be your "intention"

And get licensed in OH

@Bill Gulley

@Jay Hinrichs

Yes, I missed that he's in OH! 

Brian, doesn't admin get on you for posting ads of others? 

Just find a transactional lender and buy it! :)

@Brian Gibbons wow thanks I can't believe how helpful that information is I am currently waiting to take my test and I will be licensed in ohio. But one question that I think about is if I become licensed then I have a lot of rules to follow on that side how could I wholesale and not add to the mls? Would real estate license even be valuable at that point ? As a wholesaler 

Thx

Originally posted by @Alex Holt :

@Brian Gibbons wow thanks I can't believe how helpful that information is I am currently waiting to take my test and I will be licensed in ohio. But one question that I think about is if I become licensed then I have a lot of rules to follow on that side how could I wholesale and not add to the mls? Would real estate license even be valuable at that point ? As a wholesaler 

Thx

Alex

Yes by all means join your local reia group.  Just like any other organization not everyone there are real go getters but they all have good intentions and the ones that do actively invest can give you a great wealth of information if your just starting out.  I joined my reia group last year with no money and no credit and bought my first property 3 weeks later with the help of one of the members who I am very close with today.  I have went on to buy 15 properties in the last year and I have never been more excited.  As far as getting licensed and causing a mess not really.  I have my ohio license and it causes little complications.  If you are looking to wholesale you don't really need your license but it never hurts to have it as long as you are active and understand the costs associated with it.  If you ever want to talk feel free to email me and send me a friend request.

Ozzy Smith

[email protected]

@Tracy Caywood to say that someone's methods are "WRONG"... I would disagree.  This is more so an apples and oranges debate.  If you can make money with it, go for it.  To build a buyers list first or to find motivated sellers first depends on how its implemented and how the person makes it work.  Truthfully, both sides have their pros and cons.  @Alex Holt that's just one of those debates you should probably view some forum posts on firsts before jumping in the deep end. Building your buyers list is as simple as contacting some local turnkeys, or networking at your REIA. I respect the negotiating a great deal approach first as well. However, I personally wouldn't jump in the pool if I didn't know how to swim first without a lifeguard around. Again, these are just personal preferences. Money is to be made on both sides.

That's just my politically correct response though....I'm all for the building a buyer's list first team though. :) 

@Ozzy Smith

Thanks for the advice 

@Michael Hayes  

Got it .. I went to my local reia yesterday and it was great there advice was the same to build up my business as a whole and educate my self before doing anything because like you said I could get in a pool but can't swim and go right to the bottom . So now I'm looking at hard money lenders and partnerships so if the right property comes along I can keep it and not have to wholesale 

Great.  Good to hear it went well.  It becomes second nature after the first deal.

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