Potential Wholesale Deal in Colorado Springs, Colorado!

Investor · Los Angeles, CA · Member since 2020 · 30 posts · 8 votes

Hi!

I have a potential wholesale deal out in Colorado Springs and it'll be my first one, so I'm looking to pick someone's brain who has done a wholesale deal in Colorado before, what title company you've used and trust, and any potential buyers!

MLS has it as a single family residence, 3 bedroom, 1.5 baths (actually has 2.5 baths), approx 1500+ sqft, 9k+ lot size, 2 car garage, back yard.

Needs more cosmetic work than major rehab, and roof was recently replaced. Finished basement as well with additional room (and has the additional bathroom). Still gathering additional details, but looking to have it under contract within the month. Any guidance is greatly appreciated!

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Jonathan GreeneBusiness Member

Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes

Why do you want to wholesale something that is on the MLS? It is now available to all end buyers on the MLS. All you are going to do is put a deposit on it, hold it, and then try to resell it into a much smaller network than it is on now.

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Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
1y
Why do you want to wholesale something that is on the MLS? It is now available to all end buyers on the MLS. All you are going to do is put a deposit on it, hold it, and then try to resell it into a much smaller network than it is on now.
[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
Zen and the Art of Real Estate Investing59 Reviews
Website View Page
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Max Ferguson
Real Estate Broker · Denver/Castle Pines/Colorado Springs, CO · Member since 2021 · 248 posts · 136 votes
1y
I'd be interested in hearing about it, but I can almost guarantee if you aren't extremely well versed in the local market you will not find an end buyer. Unless the deal is fantastic of course, and maybe it will be! All major flippers in town have heavily compressed ARV to accommodate for the potential of the downward slide to continue. Hopefully that slide stops due to seasonality in spring, but if we are in another year of stagnation prices may plummet. Homes sales are the lowest they have been in over 10 years now at this point here in Co Springs.
2 Reply
Jerryll Noorden
Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
1y
Quote from @Destin E. Thomas:

Hi!
I have a potential wholesale deal out in Colorado Springs and it'll be my first one, so I'm looking to pick someone's brain who has done a wholesale deal in Colorado before, what title company you've used and trust, and any potential buyers!
MLS has it as a single family residence, 3 bedroom, 1.5 baths (actually has 2.5 baths), approx 1500+ sqft, 9k+ lot size, 2 car garage, back yard.
Needs more cosmetic work than major rehab, and roof was recently replaced. Finished basement as well with additional room (and has the additional bathroom). Still gathering additional details, but looking to have it under contract within the month. Any guidance is greatly appreciated!

As a wholesaler, you should provide value. Your value is, to provide sellers that don't want to list, with a way to get cash for their house and provide buyers with discounted off-market properties they can buy to make a profit on.
I am not saying it is not possible to wholesale from the MLS, but it seriously defeats the purpose.
Focus on becoming the person/company that offers the most and best value and you will succeed.
1 Reply
Destin E. ThomasPro Member
OP
Investor · Los Angeles, CA · Member since 2020 · 30 posts · 8 votes
1y
Quote from @Jonathan Greene:

Why do you want to wholesale something that is on the MLS? It is now available to all end buyers on the MLS. All you are going to do is put a deposit on it, hold it, and then try to resell it into a much smaller network than it is on now.

Hi Jonathan,
To clarify my post, the property is currently still with the owner (off-market) and I reference the information on the MLS since it is the information that's currently available to the public, so just providing a frame of reference to support the info in my post. Aside from that, once I was to get it under contract for assignment, just looking for any potential roadblocks or anything like that just in case while I proceed with the process. Thanks!
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Destin E. ThomasPro Member
OP
Investor · Los Angeles, CA · Member since 2020 · 30 posts · 8 votes
1y
Quote from @Max Ferguson:

I'd be interested in hearing about it, but I can almost guarantee if you aren't extremely well versed in the local market you will not find an end buyer. Unless the deal is fantastic of course, and maybe it will be! All major flippers in town have heavily compressed ARV to accommodate for the potential of the downward slide to continue. Hopefully that slide stops due to seasonality in spring, but if we are in another year of stagnation prices may plummet. Homes sales are the lowest they have been in over 10 years now at this point here in Co Springs.

Hey Max,
Thanks for the insight! That's a very good point taking the potential further value decrease into consideration (like when running the ARV for pricing it out to the end-buyer), so it makes sense that, like you said, it would have to be a great deal. Considering the owner is currently distressed (not wanting to spend more to fix it up for listing on the MLS), I may be able to make it work at a reasonable price point. Much appreciated Max! You gave me a lot to think about.
0 Reply
Destin E. ThomasPro Member
OP
Investor · Los Angeles, CA · Member since 2020 · 30 posts · 8 votes
1y
Quote from @Jerryll Noorden:

Quote from @Destin E. Thomas:

Hi!
I have a potential wholesale deal out in Colorado Springs and it'll be my first one, so I'm looking to pick someone's brain who has done a wholesale deal in Colorado before, what title company you've used and trust, and any potential buyers!
MLS has it as a single family residence, 3 bedroom, 1.5 baths (actually has 2.5 baths), approx 1500+ sqft, 9k+ lot size, 2 car garage, back yard.
Needs more cosmetic work than major rehab, and roof was recently replaced. Finished basement as well with additional room (and has the additional bathroom). Still gathering additional details, but looking to have it under contract within the month. Any guidance is greatly appreciated!

As a wholesaler, you should provide value. Your value is, to provide sellers that don't want to list, with a way to get cash for their house and provide buyers with discounted off-market properties they can buy to make a profit on.
I am not saying it is not possible to wholesale from the MLS, but it seriously defeats the purpose.
Focus on becoming the person/company that offers the most and best value and you will succeed.

Hey Jerryll,
Apologies as well, to clarify my post, the property is currently still with the owner (off-market) and I reference the information on the MLS since it is the information that's currently available to the public, so just providing a frame of reference to support the info in my post. And I totally agree, providing the best value is key and I know that's what would eventually "win" the deal for me at the end of the day. I have a few (legal) marketing ideas I haven't seen any other wholesalers use just yet that I think will help give me an upper-hand making it a win-win-win for all involved, but I'm glad we're on the same page because I want to do this right. Thanks man!
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Max Ferguson:

I'd be interested in hearing about it, but I can almost guarantee if you aren't extremely well versed in the local market you will not find an end buyer. Unless the deal is fantastic of course, and maybe it will be! All major flippers in town have heavily compressed ARV to accommodate for the potential of the downward slide to continue. Hopefully that slide stops due to seasonality in spring, but if we are in another year of stagnation prices may plummet. Homes sales are the lowest they have been in over 10 years now at this point here in Co Springs.

what are the laws in CO regarding unlicensed wholesalers tying up property advertising it and collecting a fee at closing is that even legal in that state. ???

PS I have heard of the struggles in the Springs market.. I have a close associate with a large project there and the local banks have turned off the spick-et on funding his developments and these are very large multi thousand acre deals. You probably know them. On the flip side the clients I fund in my land deals are doing very very well in the foothill subdivision 50 miles or so west of the springs.. but thats the land game buy low sell high.. cant wholesale that stuff it needs to go on MLS to marketed and turn around time is generally 90 to 180 days but nice margins for my clients .. That to me is true wholesale.. buy it and actually own it and then resell.
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Max Ferguson
Real Estate Broker · Denver/Castle Pines/Colorado Springs, CO · Member since 2021 · 248 posts · 136 votes
1y
Quote from @Jay Hinrichs:

Quote from @Max Ferguson:

I'd be interested in hearing about it, but I can almost guarantee if you aren't extremely well versed in the local market you will not find an end buyer. Unless the deal is fantastic of course, and maybe it will be! All major flippers in town have heavily compressed ARV to accommodate for the potential of the downward slide to continue. Hopefully that slide stops due to seasonality in spring, but if we are in another year of stagnation prices may plummet. Homes sales are the lowest they have been in over 10 years now at this point here in Co Springs.

what are the laws in CO regarding unlicensed wholesalers tying up property advertising it and collecting a fee at closing is that even legal in that state. ???

PS I have heard of the struggles in the Springs market.. I have a close associate with a large project there and the local banks have turned off the spick-et on funding his developments and these are very large multi thousand acre deals. You probably know them. On the flip side the clients I fund in my land deals are doing very very well in the foothill subdivision 50 miles or so west of the springs.. but thats the land game buy low sell high.. cant wholesale that stuff it needs to go on MLS to marketed and turn around time is generally 90 to 180 days but nice margins for my clients .. That to me is true wholesale.. buy it and actually own it and then resell.
Give me a ring! Would love to hear about it. I have some good friends here that may be able to help as well.

Foothills 50 miles west? as in eleven mile canyon/hartsel area?

Thanks!
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Max Ferguson:

Quote from @Jay Hinrichs:

Quote from @Max Ferguson:

I'd be interested in hearing about it, but I can almost guarantee if you aren't extremely well versed in the local market you will not find an end buyer. Unless the deal is fantastic of course, and maybe it will be! All major flippers in town have heavily compressed ARV to accommodate for the potential of the downward slide to continue. Hopefully that slide stops due to seasonality in spring, but if we are in another year of stagnation prices may plummet. Homes sales are the lowest they have been in over 10 years now at this point here in Co Springs.

what are the laws in CO regarding unlicensed wholesalers tying up property advertising it and collecting a fee at closing is that even legal in that state. ???

PS I have heard of the struggles in the Springs market.. I have a close associate with a large project there and the local banks have turned off the spick-et on funding his developments and these are very large multi thousand acre deals. You probably know them. On the flip side the clients I fund in my land deals are doing very very well in the foothill subdivision 50 miles or so west of the springs.. but thats the land game buy low sell high.. cant wholesale that stuff it needs to go on MLS to marketed and turn around time is generally 90 to 180 days but nice margins for my clients .. That to me is true wholesale.. buy it and actually own it and then resell.
Give me a ring! Would love to hear about it. I have some good friends here that may be able to help as well.

Foothills 50 miles west? as in eleven mile canyon/hartsel area?

Thanks!

I will ping you off line I dont want to create competition for my client :) send me a PM and I will let you know the areas .. WE did a nice flip last may though in Winter Park that was a good one.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
0 Reply
Destin E. ThomasPro Member
OP
Investor · Los Angeles, CA · Member since 2020 · 30 posts · 8 votes
1y
Quote from @Jay Hinrichs:

Quote from @Max Ferguson:

I'd be interested in hearing about it, but I can almost guarantee if you aren't extremely well versed in the local market you will not find an end buyer. Unless the deal is fantastic of course, and maybe it will be! All major flippers in town have heavily compressed ARV to accommodate for the potential of the downward slide to continue. Hopefully that slide stops due to seasonality in spring, but if we are in another year of stagnation prices may plummet. Homes sales are the lowest they have been in over 10 years now at this point here in Co Springs.

what are the laws in CO regarding unlicensed wholesalers tying up property advertising it and collecting a fee at closing is that even legal in that state. ???

PS I have heard of the struggles in the Springs market.. I have a close associate with a large project there and the local banks have turned off the spick-et on funding his developments and these are very large multi thousand acre deals. You probably know them. On the flip side the clients I fund in my land deals are doing very very well in the foothill subdivision 50 miles or so west of the springs.. but thats the land game buy low sell high.. cant wholesale that stuff it needs to go on MLS to marketed and turn around time is generally 90 to 180 days but nice margins for my clients .. That to me is true wholesale.. buy it and actually own it and then resell.
Hi Jay, no luckily you don't need to be licensed in Colorado to wholesale properties, so that part is fine and totally legal as is in many states. Aside from that, it sounds like my operation is quite a bit smaller than what you and your network operate with, but properties that are wholesaled are usually all cash or hard money, so the initial funding aspect usually isn't a roadblock. I do plan on getting into land one day, just have to get a little further in my career first. Thanks for chiming in though!
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