Can someone help with some friendly advice

Question

My name is Bobby I'm looking to get some advise on where to start on doing this wholesale for properties in the Savannah and statesboro surrounding areas thanks in advance

E.J. McCaffrey · Answer

Real estate wholesaling can be a smart way to get into real estate without a lot of money up front, but there are some important legal rules you need to understand. In some states, you must have a real estate license if you're trying to wholesale, especially if you're advertising a property that you don’t actually own. Instead of promoting the property itself, you're usually only allowed to advertise your right to buy the property—which means you're selling your contract, not the house. If you market it the wrong way, you could get in trouble for acting like a real estate agent without a license.

Some states have very strict rules about wholesaling. For example, in Illinois, you can only wholesale one property per year without a license. Other places might let you assign contracts, but only if you follow certain rules and give full disclosure to both the seller and the buyer. These rules are meant to protect people from scams or confusion.

It’s also important to make sure your contract says you’re allowed to assign it to someone else. You can do this by adding “and/or assigns” next to your name on the contract. But watch out—some contracts written by sellers might say you’re not allowed to assign it at all. If you try to assign a deal that has a “no assignment” clause, the seller might cancel the deal or even take legal action.

Another smart move is to include something called a contingency clause in your contract. This gives you a legal way out of the deal if something goes wrong, like if the inspection finds major problems or you can’t find a buyer. Without this, you could lose your deposit or be forced to buy the property yourself.

Because the laws can be different in every state, it’s a good idea to talk to a real estate attorney who knows about wholesaling. They can help you write your contracts the right way and make sure you’re following all the rules. That way, you can protect yourself and keep your business running smoothly.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Stephen Morales · Answer

Hey @Bobby Mcculloch,I would be happy to help out and point you in the right direction. Where are you currently in the learning process? Have you decided on a strategy that you want to pursue?

Duncan Hayes · Answer

You need to study up. I am not saying spend all your time learning and not doing, but please make sure you learn.

Learn the laws of your market. Learn what the difference between an assignment and an ABC transaction is. Learn the median home price. Learn how to calculate repairs fairly accurately. Learn how to calculate ARV. Learn how to calculate your max allowable offer. There's tons of podcast and books.

One book I recommend is "If You Can't Wholesale After This, Then I've Got Nothing For Ya" by Todd Fleming. I read this book AFTER I completed my first deal back in 2019. Everything he said in this book is exactly what I did. The faster you pick up the knowledge, the faster you can start working on deals.

Bobby Mcculloch · Answer

Ok where do I start I just basically want to find properties and wholesale them for a profit

Dominic M. · Answer

That's probably too much to unpack in one thread. I would select one marketing method and become an expert at it. Get a script, role play, and master it. Underwrite 100s of deals so you understand what your max offer is. Can probably spend weeks just diving into these 3.

Bobby Mcculloch · Answer

All of the above

Dominic M. · Answer

Hi Bobby, can you expand on your question a little bit, what do you mean by where to start? Is this marketing, sales, strategy? All of the above?