First WHOLESALE DEAL I HOPE!

7 Replies

I have a question about a piece of  property I am trying to wholesale: the home is listed with a real estate agent for $27,500 it has a tenant inside who pays $500 per month. The home is newly renovated and I will get it under contract for $23,000 to $25,000. I just submitted my first offer of $23,000 and they want a deposit  $1000 before I officially submit the offer.

1. How can avoid paying the  $1000? 

2. What should I charge for my wholesaling fee?

3. How do I find buyers? (I'm very new to this)

4. What should I do?:-)

Thanks in advance 



First off, Your trying to wholesale a property listed on the MLS? Why would someone buy it from you when they could buy it directly off the MLS themselves? Second, after closing costs, realtor fees etc....your not going to make any money at all.

I would suggest letting this one go...there isn't any money in it at all. If it wasn't on the MLS and you had a motivated seller, then you could possibly play ball butt I would walk away from this. Start reading the blogs on here dealing with wholesaling, listen to every podcast pertaining to that same topic and read every forum post you can about wholesaling as well.

I applaud the fact your taking action, as 90% do everything but take that first step, I suggest read, read and listen then apply some of what you have learned to your next deal!

Good Luck 

@Travis Boyer thank you so much for your feedback. I have been read and listening to everything I can get my hands on about wholesaling and rehabbing since February & it is my fear not let a deal pass me by. When is the best time to start? What does a good deal look like or feel like? I am so motivated to start.......

@Travis Boyer

Travis, 

First of all congrats on taking action. That's a great first step. Next I'd say the best thing to do is to deal directly with the sellers. Wholesaling from the MLS is an entirely different ballgame. Not something that you should start with. Maybe do some direct mail. Or attend your local REIA and connect with the investors there to determine what's working......Good luck, Roland

@Marian L Claville I know you are anxious to get started, I was the same way when I wanted to find my first rehab house, however I knew if I got into the wrong deal that and didn't focus on the numbers that I could get into a large amount if financial trouble.  I liked at over 60 houses, made 30+ offers before I found one that worked with my numbers. Action is great but just ensure you are performing your due diligence.

Originally posted by @Travis Boyer :

@Marian L Claville I know you are anxious to get started, I was the same way when I wanted to find my first rehab house, however I knew if I got into the wrong deal that and didn't focus on the numbers that I could get into a large amount if financial trouble.  I liked at over 60 houses, made 30+ offers before I found one that worked with my numbers. Action is great but just ensure you are performing your due diligence.

 Thank you Travis I am praying for patience and preparing myself more. I really appreciate your response.

Hi Marian,

Thank you for bringing up this question. I am in the same boat, the difference though is that the property in question is NOT available on MLS. However, there is a broker representing the seller and he's the one that brought the property to me.

The seller's asking price is $4million. I am waiting on the numbers from the broker, while I'm trying to run my own numbers. I am also trying to bring in international investors if possible. 

This is my very first deal but i have no clue what i am doing. I need a savvy mentor. Is there anyone in San Antonio that could help me through this deal, finding buyers, all the way to closing. I have no problem splitting my share with my mentor.

Thank you,

Charles

Originally posted by @Charles Oyesile:

Hi Marian,

Thank you for bringing up this question. I am in the same boat, the difference though is that the property in question is NOT available on MLS. However, there is a broker representing the seller and he's the one that brought the property to me.

The seller's asking price is $4million. I am waiting on the numbers from the broker, while I'm trying to run my own numbers. I am also trying to bring in international investors if possible. 

This is my very first deal but i have no clue what i am doing. I need a savvy mentor. Is there anyone in San Antonio that could help me through this deal, finding buyers, all the way to closing. I have no problem splitting my share with my mentor.

Thank you,

Charles

 Congratulations Charles! Hope all goes well for you! If I look through my network and see someone in that area I will definitely give them your information.

Best Wishes -Marian