What are the Real Costs Associated with Wholesaling a Property?

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What are the Real Costs Associated with Wholesaling a Property?

Brandon SturgillBusiness Member

Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes

And who typically pays...closing costs? title fees? title insurance? surveys? etc. etc....

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Bill Gulley

Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes

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John, guess you just wanted to post something.

Costs are split by local custom, need to get with a Realtor or title company/closing agent to break down buyer and seller costs. You don't add costs in your offer to a seller and you need to consider seller's costs when selling.

But, in wholesaling, unless you are closing and taking title, you don't even have to go to closing much less pay costs as the deal is between the seller and your buyer and you step aside, simply assign your contract, collect your fee. You could attend closing to get your fee, but you aren't the buyer or seller, if you don't take title.

Both of you guys seem totally lost, I suspect you jumped right into the wholesaling thing like most without a clue as to the fundamentals of RE, your life will be much easier if you back up and learn the basics instead of doing what many try to do and jump for the immediate dollar in some deal. Sooner you learn from the beginning the sooner you'll be making money. :)

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John Chapman
Real Estate Investor · Alexandria, VA · Member since 2013 · 48 posts · 9 votes
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Here are a few things I've picked up. I'm not a PRO at this....as I am currently on the search for my first deal, but I think the following might help.

I would say the first [major] cost will be the marketing. Everyone likes to say "you can get started with no money". Well, you COULD, but it might be pretty difficult. As for myself, I have set aside a budget strictly for marketing every month.

I think all the costs for closing would normally be paid by you, factored into your asking price. You want to make the deal as favorable as possible to the seller. They already have some other issues going on in their life (maybe divorce, death, bankruptcy etc....) the more you can make this a great deal for them, the more likely you are to close.
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Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
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John, guess you just wanted to post something.
Costs are split by local custom, need to get with a Realtor or title company/closing agent to break down buyer and seller costs. You don't add costs in your offer to a seller and you need to consider seller's costs when selling.
But, in wholesaling, unless you are closing and taking title, you don't even have to go to closing much less pay costs as the deal is between the seller and your buyer and you step aside, simply assign your contract, collect your fee. You could attend closing to get your fee, but you aren't the buyer or seller, if you don't take title.
Both of you guys seem totally lost, I suspect you jumped right into the wholesaling thing like most without a clue as to the fundamentals of RE, your life will be much easier if you back up and learn the basics instead of doing what many try to do and jump for the immediate dollar in some deal. Sooner you learn from the beginning the sooner you'll be making money. :)
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Ryan Billingsley
Investor/Realtor · Wentzville, MO · Member since 2014 · 846 posts · 431 votes
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@Brandon Sturgill The cost associated with wholesaling will depend on the situation. First of all, it is hard to wholesale without investing money in marketing to generate the leads. But as others said, without the knowledge, wholesaling is probably not the best way to get started in REI. But to answer your questions, the cost of closing a deal at a title company is negotiable with the buyer and seller. So negotiate the deal in your favor and have the buyer pay closing cost. If you got the property under contract at the right price, the buyer will care less about paying the closing cost because its a great deal!
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Kyle J.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
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Originally posted by @Brandon Sturgill:

And who typically pays...closing costs? title fees? title insurance? surveys? etc. etc....
A wholesaler wouldn't typically pay any of these fees. They'd be paid by the actual buyer and/or seller, usually depending on local custom and (more importantly) what the purchase agreements states with regards to who will pay them (i.e. buyer, seller, or 50/50 split).
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John Chapman
Real Estate Investor · Alexandria, VA · Member since 2013 · 48 posts · 9 votes
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@Bill Gulley Sorry! I don't just post to post.... If I could delete the above post I would; I don't want to spread around false information.
I'm here to learn, so thank you for the information you shared.
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Brandon SturgillBusiness Member
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Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
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@John Chapman don't worry about @Bill Gulley ...I didn't really expect such sophomoric answers from these guys anyway...guess I need to post at a sixth grade reading level to get an informed response. So, in general, wholesaling through contract assignment is really an in-elegant and suspect method of REI that has been exploited by folks with no class for far too long....enough said...
In all seriousness, I am striving to become an investor in the truest sense of the word. I don't need philandering, I need sound advise from other true investors, which seems few and far between. Let me put it this way; I would like to know (of those of you who actually take title to the property and perform a double close) what costs do you normally incur:
Title Exam fee?
Owners Policy?
Binder?
Closing costs?
Seller's closing?
Deed fees?
Recording?
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Bill S.Pro Member
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Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
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@Brandon Sturgill as was stated, who pays these fees is purely local custom. To find out what is done locally get with an agent in your area that does a number of deals a year.
Everything is negotiable. Wholesalers typically pass all costs related to the deal to the end buyer. Given that, anything you can make the seller pay for is more money you save the end buyer and subsequently the more money you get to pocket.
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Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
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Originally posted by @Brandon Sturgill:

@John Chapman don't worry about @Bill Gulley ...I didn't really expect such sophomoric answers from these guys anyway...guess I need to post at a sixth grade reading level to get an informed response. So, in general, wholesaling through contract assignment is really an in-elegant and suspect method of REI that has been exploited by folks with no class for far too long....enough said...
In all seriousness, I am striving to become an investor in the truest sense of the word. I don't need philandering, I need sound advise from other true investors, which seems few and far between. Let me put it this way; I would like to know (of those of you who actually take title to the property and perform a double close) what costs do you normally incur:
Title Exam fee?
Owners Policy?
Binder?
Closing costs?
Seller's closing?
Deed fees?
Recording?
LOL, ;) now that we have graduated to more specifics;
Title exam is by local custom, here and to my thinking, the title exam shows that the seller has marketable title, it's a claim being made by the seller saying they can convey title, so prove it! Show me, that's how a Missourian would approach it. So, the seller pays, if the deal falls through for any reason, the seller already has the search completed too.
TI, Owner's policy, again by local custom. But, who's policy is it? It's for the buyer's benefit as well as any lender's benefit as the lender's policy usually goes with it (yes, some may gig the borrower for it).
Binder? I suppose you mean a hazard insurance binder. When I double close you might say I self insure and just hope the place doesn't burn down in the ten minutes it takes to sign at closing. But, a buyer has the interest at risk, his lender requires it, the policy pays him for any loss insured, so why would a seller pay it? I guess they could, but I never closed one with a seller paying for the buyer's insurance.
Seller's closing cost, self explanatory, the seller is slammed with those costs, but a buyer could agree to pay them. It's more customary for a seller to pay buyer's costs, except pre-paids, taxes, insurance, PMI on a loan, per diem interest and loan fees required.
Deed fee? Sounds like a document preparation fee, again, by local custom, or as agreed but the deed made must be to the benefit of the buyer, so I'd ask the buyer to pay it.
Recording fees, these are the deeds of conveyance and security liens required for the benefit of a buyer. If a seller had recordings to file, such as a deed of release on his mortgage, that's something required to pass good title. Again by custom, either could pay it in some manner, but who's benefit is it and who might be required to have the recording accomplished? That's who generally pays.
By calling a local title company, you'll find out what local custom is, but generally it should be as outlined above.
I suppose I shouldn't be so rough on those that don't really take advice and learn RE from the basics, as to local custom, the fundamentals and insist on jumping into methods trying to figure stuff out the hard way.
Just shipped off a 21 year old college student out of the house, he was much the same way, wanted everything spoon fed to him with little effort on his part. So, please excuse my rash demanding behavior thinking that demanding a little more effort out of new types will motivate them, I'm probably wrong. :)
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Brandon SturgillBusiness Member
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Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
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@Bill Gulley Now that's the type of response I am used to getting from you. I will be printing this and revising my business plan in the morning. Thank you very much. And congrats on getting your kid to college. Hope they do well...majoring in real estate finance? :)
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Brandon SturgillBusiness Member
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Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
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Thanks @Bill S.
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Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
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No, the dink is a political science major wanting to be an attorney for God's sake! Not my kid, but he's very bright, but will probably turn out as an ambulance chaser due to his laziness !
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Aaron Mazzrillo
Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
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Here is the correct answer in relation to your question:
Lead acquisition costs.
What it costs you to get a lead, how many leads you need to make an offer, and how many offers it takes for you to get a deal. That is your cost per deal. A wholesaler doesn't pay any fees associated with the transaction. They are paid by the seller, buyer, or both depending on how you negotiate the deal. I assign lots of contracts with the buyer paying all costs. I do a few with the buyer and seller each paying their own - it just depends on what else is negotiated into the deal and the final price.
For example: I recently made an offer of $56K, buyer pays all costs, no contingencies. The seller countered at $60K. I countered at $60K, each pay their own costs and buyer gets a termite inspection at buyer's expense with the right to cancel within 7 days if the termite repair work estimate is unacceptable. Even though the seller will potentially net quite a bit more with this counter, she didn't like it very much. Makes me think she knows something she isn't disclosing!
For the sake of this post, let's assume the seller and I did agree on my counter. When I assign this contract (which really isn't a contract so much as an agreement since I don't have any consideration in my offers, but again, that isn't 100% always the case), I will get a check for the difference between the final offer price, in this instance my counter of $60K and whatever my assignment fee is, let's say $70K, so $10K. My buyer will only pay his half of escrow and whatever he might pay for a termite inspect (they are typically free when a property is in escrow with a fee for the clearance). The seller will pay her side of escrow, transfer fees, and the title insurance policy (as is custom here in Southern CA). My buyer's all in will be around $71K. The seller should net around $58.5K give or take a few hundred on either side.
If it costs me $1,800 to get a deal, my net on this particular deal will be $8,200 on paper. That does not take into consideration the time spent creating marketing pieces, getting them out there, managing campaigns, answering the phone & emails, comping houses, putting together offers, submitting them, negotiation, follow-up, etc. That is why, as a wholesaler, it takes more than one deal a month to actually make any real money and why I insist wholesaling is not a newbie game and why, at the end of my day, the only important metric is how many offers have been made.
That check for $8,200 might look great in your hand, but when you boil it down to $100/hour or less, it isn't very much money in the real estate investor world. And while that is still better than a j.o.b., wholesaling is about the volume of leads generated and deal flow created. When you do your second deal in the same month from that same marketing blast, that is when the real profits start to roll in and income climbs to hourly rates not obtainable by above average doctors and lawyers.
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John Chapman
Real Estate Investor · Alexandria, VA · Member since 2013 · 48 posts · 9 votes
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@Aaron Mazzrillo @Bill Gulley
Thank you!
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Brandon SturgillBusiness Member
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Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
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@Bill Gulley Too funny...I vaguely remember being 21....priorities were a bit different then.
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Brandon SturgillBusiness Member
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Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
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@Aaron Mazzrillo, thanks for expanding the response. Much appreciated.
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Drew Hausfeld
Member since 2018 · 1 post · 0 votes
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I am reading this thread 4 years later and want to thank all involved, good info and good form, professional delivery.
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Summer Starr
Member since 2019 · 1 post · 0 votes
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So nobody talked about initial investment. IE.. Gas from driving around trying to find properties amount of hours spent looking, to how they found investors. Seems to me you’d have to have a lot of spare time and gas money.
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Irina Belkofer
Real Estate Broker · Cleveland, OH · Member since 2017 · 719 posts · 658 votes
7y
Originally posted by @Summer Starr:

So nobody talked about initial investment. IE.. Gas from driving around trying to find properties amount of hours spent looking, to how they found investors. Seems to me you’d have to have a lot of spare time and gas money.
This is the best kept secret.
When all the gurus try to seduce wannabe RE investors without any money, they omit the fact that there will be money but much more time. This will be more than full time job without income to rely on....besides, legal obstacles might leave you not only without money from transaction but with money spent on lawyers.
After all, wholesaling is brokering without license. It takes one good complain to the Division if RE or Board of Realtors....it costs around here $10K for the first offense ....or maybe more now
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Mason Urbina
Member since 2020 · 2 posts · 0 votes
6y
@IrinaBelkofer
- Why did you have an offense?
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Gary Leonard
Real Estate Broker · Brockton, MA · Member since 2020 · 25 posts · 25 votes
5y
Good question! However, to answer it, and for you to understand where I am coming from, one must put everything down, step back, relax, and pay attention to the business's functionality. It's like any other business at its most basic core, just like a sales transaction in all types of industries has the same basis. That base is to provide a service or utilize your knowledge of service to obtain an asset you can resell or rent for interest and profit. Within each business lies tokens of valuation rendered on top of the goods and services already formulated in doing the interaction, well, a company. For example, my real estate wholesaling business, Massachusetts Home Buyers LLC, at its very core, does what? Yes, you are correct; it's in the business of buying significantly low and reselling low. As time passes by, the business owner must get acclimated and flexible with the times, or they will experience a decline, simple as that. For example, numerous times this year, I was able to outbid other investors in the area (when I say "investors," I mean other entities related closely to my own business like that of "Home Visitors Franchisors).
What was my secret in outbidding all of these real estate investors? These are competitors that spend 10x the amount I do in ad spend, and some advertise on other media sources, such as television and billboards. So how does a small town sole proprietor gain a foothold within a very competitive type of business? You see, before delving into the beautiful world of real estate investing, I have some advantages. That advantage was my pure knowledge within the industry. No, not because "I am a know-it-all," but preferably have obtained a real estate license ten years prior and, for the most part, understood the semantics of the entire process. Once you have the underlying processes down and memorize the functionalities within each of those processes, you will see that there will always be areas of strategical advantages that will give you a quick foothold on your competition (NO MATTER HOW BIG YOUR COMPETITOR IS OR THEIR EXPERIENCE)...
Now I have been a real estate broker within Massachusetts since I was 21 years old (as of the typing of this answer, I am 36 years old). Since the age of 21, I have owned and operated the same brokerage up until I began learning what I considered illegal at one time, the art of wholesaling real estate.  After learning the operation of wholesaling and our advertising online, I a little more than doubled my business revenue within an eighteen-month duration. This increase was from $5,950,000.00 of overall sales volume (4-6 agents working at any given time) to $12,920,600.00 (of which I take home after expenses, rents, 60% of agents commissions, etc.), about 12-13% of that total revenue. Thus, as you can see, I have seen massive changes in my life by incorporating a real estate wholesaling business within my well-established luxury home real estate business. Wholesaling opened my mind up to create opportunities, all of which aligned with local and federal statutes.
SO TO ANSWER YOUR QUESTION " And who typically pays...closing costs? Title fees? Title insurance? Surveys? etc. etc...." THE ANSWER IS, TRADITIONALLY, THE CASH END BUYER. THE WHOLESALE INVESTORS VALUE IS JUST KEEPING THE DEALS FLUID AND CYCLICAL ON THE CASH INVESTORS RADAR. ALMOST LIKE THE CASH BUYERS SECRET AGENT NINJA THAT WHEN THEY ARE TIED UP ON A FLIP, IS STEALTHILY LOOKING FOR THEIR NEXT PROJECT, AND ANOTHER AFTER THAT AND ANOTHER, BREAKING THE USUAL LULL BETWEEN AN INVESTORS FIX AND FLIPS. I believe everyone should put in their fair share; however, it is what it is.
1) A wholesaler pays for marketing and other lead generation activities.
2 They qualify that leads they obtain
3. They execute a purchase and sales agreement between themselves and The Seller of the Property
4. Now, having an equitable interest, the wholesaler's sole responsibility would be to finding a buyer and executing a second contract known as an assignment. Once that agreement is complete, the wholesaler's obligation to close with the seller transfers to the cash end buyer. The Buyer will then be responsible for closing with the seller and subject to all the costs associated with closing real estate. Once transferred via an assignment contract, the cash end buyer will then conduct and pay for surveys, title inspections, etc., onto the cash end buyer. Accept if there is a double escrow, then the wholesaler will need to pay for the closing fees when buying directly from the seller.
STOP... Now # 5 is where I beat all those other competitors in my town! I pay for title exams, inspections, survey the property, obtain the MLC's for the buyer, line them up with my attorney, or work with an attorney. This CUT'S out a lot of work for the end cash buyer; They like that! Most wholesalers don't because they simply DON'T HAVE TO.
6. After finding a buyer, they execute an ASSIGNMENT CONTRACT WITH THE WHOLESALER.  I charge a higher premium to my assignment fee to cover some of the costs associated with the appraisals, inspections, title exams, etc. (the stuff the buyer doesn't have to do after executing the assignment with me).
7. Traditionally, after the assignment executes, the cash end buyer gets insurance, inspect the home, run title, examine the executed P&S (the one your name is on), etc.. Meanwhile, the wholesaler doesn't HAVE TO pay anything in regards to the buyer's side for the closing. They would have to, however, if they couldn't find a buyer.
8. RECAP THE WHOLESALER CONDUCTS THE FOLLOWING ACTIONS: GENERATE LEADS, QUALIFY THE LEADS, CONTRACT WITH THE SELLER, EVALUATE THE DEAL (EXACT OPPOSITE FROM A TRADITIONAL STANDPOINT WHERE YOU WOULD WANT FIRST TO EVALUATE THE DEAL THEN DECIDE WHETHER TO GET IT UNDER CONTRACT OR NOT), PLAN EXIT STRATEGY (ASSIGNMENT OR DOUBLE CLOSE), CLOSE- REPEAT
COSTS OF EVERYTHING PAST THE ASSIGNMENT

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Gary Leonard
Real Estate Broker · Brockton, MA · Member since 2020 · 25 posts · 25 votes
5y
Originally posted by @Bill Gulley:
John, guess you just wanted to post something.
Costs are split by local custom, need to get with a Realtor or title company/closing agent to break down buyer and seller costs. You don't add costs in your offer to a seller and you need to consider seller's costs when selling.
But, in wholesaling, unless you are closing and taking title, you don't even have to go to closing much less pay costs as the deal is between the seller and your buyer and you step aside, simply assign your contract, collect your fee. You could attend closing to get your fee, but you aren't the buyer or seller, if you don't take title.
Both of you guys seem totally lost, I suspect you jumped right into the wholesaling thing like most without a clue as to the fundamentals of RE, your life will be much easier if you back up and learn the basics instead of doing what many try to do and jump for the immediate dollar in some deal. Sooner you learn from the beginning the sooner you'll be making money. :)

Billy is 100% correct. Many real estate wholesaling methods cannot be summed up with a simple assignment of the equitable interest to an investor. What if you had a buy and hold investor? Do you know what to do then? Do you know the parameters one must follow to build a portfolio without playing the "the landlord" game? There are many ways to skin a cat in this business, and value will trump all! If you can go a step further and eliminate headaches for your cash end buyer after the assignment is executed, well, you want to fish for life, correct? One doesn't have to, but it is almost worth getting your license and learning the trade first, then knowing the principles of business structuring and management. This is what will discern you in what one would call a "saturated" field. It may be saturated with people calling themselves wholesale investors. However, I can tell you this: 200 "so-called" investors in my county's REIA, including myself, and 6 of those 200 are currently doing deals. Meaning, out of the 200, there are only six of us that are always a common face, and there are 194 new faces at almost every meeting. The 194 are people that come and go into the business. The main reason is that they lack the functions and the business aspects of the trade.
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Gary Leonard
Real Estate Broker · Brockton, MA · Member since 2020 · 25 posts · 25 votes
5y
Originally posted by @Irina Belkofer:
Originally posted by @Summer Starr:

So nobody talked about initial investment. IE.. Gas from driving around trying to find properties amount of hours spent looking, to how they found investors. Seems to me you’d have to have a lot of spare time and gas money.
This is the best kept secret.
When all the gurus try to seduce wannabe RE investors without any money, they omit the fact that there will be money but much more time. This will be more than full time job without income to rely on....besides, legal obstacles might leave you not only without money from transaction but with money spent on lawyers.
After all, wholesaling is brokering without license. It takes one good complain to the Division if RE or Board of Realtors....it costs around here $10K for the first offense ....or maybe more now

YOU ARE INCORRECT, MA'AM, AND I TRUELY SAY THIS WITH THE UTMOST RESPECT. REAL ESTATE WHOLESALING IS NOT "BROKERING WITHOUT A LICENSE," AND IT'S NOWHERE NEAR ILLEGAL... PLEASE THINK BEFORE YOU GIVE OUT YOUR DOGMATIC ADVICE AND STATE IT AS TRUTH...

MY CREDENTIALS ARE BELOW:

BROKERING WITHOUT A LICENSE WOULD BE IF THEY REPRESENTED A SELLER OR BUYER IN FACILITATING A DEAL WITHOUT ANY RISK AND/OR INTEREST EQUITY IN THE DEAL before CLOSING. FOR EXAMPLE, IF THE GENTLEMEN ABOVE APPROACHED YOU WHEN YOU ARE SELLING YOUR HOME AND SAY'S "IF I FIND YOU A BUYER, AND BRING HIM TO YOU TO BUY THIS HOME, CAN I GET PAID, AND VICE VERSA WITH BUYER. A BUYER, "HEY, MR. BUYER, I CAN SHOW YOU THIS GUY UP THE STREET WHO'S SELLING A HOME THAT MATCHES YOUR STYLE COMPLETELY; I'LL BRING YOU TO HIM IF I CAN REPRESENT YOU AND TALK TO THE SELLER FOR YOU?

NOW WITH WHOLESALING REAL ESTATE (MA'AM I AM A MASSACHUSETTS LAWYER AS WELL BROKER WITH A REAL ESTATE MANAGEMENT DEGREE FROM BOSTON UNIVERSITY)

WHOLESALING THE LEGAL WAY

"HE MR/MRS/MS SELLER- I AM A INVESTOR, I OR ONE OF MY BUSINESS ASSOCIATES WILL BUY YOUR HOME AT NO CLOSING EXPENSES ON YOUR END... THE WHOLESALE INVESTOR SIGNS THE P&S AS A BUYER OR INTERESTED PARTY WOULD DO... UNLIKE A BROKERING A DEAL, THE ENTITY (INVESTOR) HAS WHAT IS CALLED EQUITABLE TITLE IN THE PROPERTY (LIMITED TO LEGAL TITLE OBVIOUSLY) UNTIL THE CLOSING THEN LEGAL TITLE IS TRANSFERRED. THINK OF EQUITABLE INTEREST AS A "I AM ABOUND TO BUY THIS PROPERTY UP TO CLOSING DATE- IF I DON'T EXECUTE ON DATE OF CLOSING I FORFEIT MY EARNEST MONEY DEPOSIT"... I HAVE A KNOWN RISK IN THE DEAL - AN EQUITABLE INTEREST THAT I, UNDER A STATE ISSUED ASSIGNMENT CONTRACT, CAN TRANSFER LEGALLY TO ANOTHER ENTITY AS LONG AS P&S IS ASSIGNABLE. IF THE CONTRACT IS THAT OF A FANNIE MAE OR FREDDIE MAC, I MAY ASSIGN THROUGH UTILIZING THE SOLUBLE CONFINES OF A BUSINESS CREATED ENTITY (LLC MAY BE TRANSFERRED WITH THE EQUITABLE INTEREST UNDER IT)... ANYWAYS- I AM CONCERNED YOU ARE THIS MISINFORMED WHEN YOU TOO ARE A LICENSED REPRESENTATIVE OF YOUR STATE. SOUND LIKE YOU HAVE A VENDETTA TOWARDS THE INVESTMENT STRATEGY WHICH IS MAINLY YOUR OWN ISSUE AND NOBODY ELSES. WANT TO KNOW WHAT I'D SAY TO YOU IF YOU CAME TO ME ASKING FOR REPRESENTATION FOR AN ASSIGNMENT? I WOULD ASK YOU, "DO YOU HVAE A COPY OF THE ORIGINAL P&S" AND " DO YOU HVAE A COPY OF THE ASSIGNMENT"- IDGAS IF THE SELLER WAS UNAWARE OR NOT (ALTHOUGH THEY SHOULD BE AWARE FOR MORAL AND ETHICAL PURPOSES)- IF THERE IS NOTHING IN THE P&S STATING THAT IT CANNOT BE "NOMINATED" IS THE MASS BOARD OF REALTORS NAME DESCRIBING A NON-LICENCED ENTITY (A NOMINEE)... SO PLEASE ADMIT YOU ARE JUST CRAPPING ON THE STRATEGY BUT KNOW THAT CALLING IT ILEGAL MAKES YOU LOOK LIKE YOU ARE CLUELESS YOURSELF.
YOU ARE WRONG ABOUT THE FOLLOWING:
IF THE WHOLESALER FOLLOWS THE ABOVE - ANY COMPLAINT TO THE BOARD WOULD BE IGNORED HMM HOW DO I KNOW THIS- I AM A REPRESENTATIVE HERE IN MASSACHUSETTS...

ALSO, LAW TRUMPS ANY MOVEMENT FROM THE BOARD. IF THERE ARE NO LAWS about IT- ALL THE BOARD WOULD SAY "OK PLAY NICE NOW LEAVE US BE"
THE ONLY TIME THE BOARD WILL GET INVOLVED IS THROUGH COERCION AND DUES BEING MIS-ALLOCATED
SORRY AS A MEMBER OF THE MASSACHUSETTS BOARD OF REALTORS, I MUST SAY, YOUR COMMENT IS BY FAR THE MOST INCORRECT REPLY I HAVE SEEN SINCE NANCY PELOSI ANNOUNCED THAT OUR MONETARY ISN'T FIAT.

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Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
5y
@Gary Leonard Brother are you one of those that can type 300 words a minute? LOL. The situation that we are facing as you have already seen is if people don’t like something they simply call it illegal as you have pointed out. I hope you don’t mind typing more because there’s a few other people that loves to argue and hates wholesalers that will probably be looking for an opportunity the spend a few moments online. Thanks again for your insightful responses have a blessed day as well as a prosperous new year. :-)
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Jason Regan
Investor · Leominster Ma · Member since 2019 · 305 posts · 162 votes
5y
I am also n ewer at this and beginning the process. I am looking to flip, not wholesale, but marketing can be a big expense. How are you going to find the properties. The cheapest I see is probably driving for dollars as the leads are free. What do you do after that though. You can skip trace the leads for under a dollar and call them. That would be the cheapest in my mind but hardest for most to do as you will be met with a lot of resistance. On average it takes 6-8 calls to gain someone trust enough to work with you. These is also texting which you need to ensure you are following guidelines then mailing. Texting for me is 1.5 cents per text and a mailer is 40-50 cents. These can add up. As for the costs such as closing costs and such, this can be negotiated so someone else pays them, especially since you are just assigning. I guess to sum it up, I am saying most costs will be in marketing in my mind
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Steve Morris
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
5y
On average it takes 6-8 calls to gain someone trust enough to work with you.
If that's your hit rate, that is pretty d*** good. I'd stick with that.
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