Wholesaling Noobie, WANT TO GET STARTED

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Wholesaling Noobie, WANT TO GET STARTED

Jesse Patterson
Winston Salem, NC · Member since 2017 · 10 posts · 9 votes

Hello everyone my name is Jesse Patterson and I am currently 22 years old. I live in the small town of King, NC. I've been pursuing in self employment ever since I was 17 years old. Though unsuccessful I still haven't given up and will never give up. Wholesaling really caught my attention this past week or so as I realized the potential earnings. But after countless guides and threads I still haven't found one to meet my specific questions. That's why I'm glad I found this community where everyone shares knowledge to benefit each other. Unfortunately I have little to no idea what it is I'm doing. My main concern is legal issues. If it weren't for legal issues I would be out there everyday striving to find my first deal to close. There are a few other small things that I would like to know as well. I will list my questions below to try and be as clear as possible.

1. How do I find out if wholesaling is legal in North Carolina? I've read some real estate laws but the way they word them makes it almost impossible to be completely precise.

2. I've heard of cases where people have been charged for not having a broker license? I do not currently have a realtor or broker license.

3. Am I able to show the buyer the house? If not how in the world am I going to sell someone a house that they have never seen before?

4. How do double closings/seller side only hubs work? I heard that a seller side only hub would make it to where to the seller can't see anything but what pertains to them. Such as they wont see the profit I am making (I don't want to scare them away). I also heard double closing work the same way but have twice the expenses.

5. If I set the closing date to be two months later and I don't close, will I be fined each day until I close (something I heard on the web), or will the contract just no longer be valid?

I am sorry that I am asking so many questions and can't benefit anyone else with some information. I'm just very eager to get started and want make sure I'm not going to be breaking any laws. Thank you all for your responses in advance. Have a great day!

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Account Closed
Professional Auctioneer · Baltimore, MD · Member since 2015 · 1k+ posts · 1k+ votes
9y

1 how can buying real estate or controlling it at an acceptable price with the seller and reselling that property or assigning it to another for a higher price be illegal. I don't think you will have a problem.

2 as long as you are not representing others and you represent yourself only -- you do not need a brokers license.
3 you need to have an agreement with the seller that says you have right of possession or right of entry by appointment to show the house to your assignee.
4 you need to make full disclosures, let the seller know that it is your objective to earn a reasonable profit. You don't want to hide anything in a closing.
5 you will not be fined, but you could lose your deposit or lose the transaction. Make sure you have a long closing date, use banking days in your contract. Use this clause: if this contract offer is not assigned during the life of this agreement, buyer has a right to withdraw from this offer without penalty and a refund do deposit.

You should study power prospecting, contract engineering, and negotiations before starting your exciting journey as a real estate investor.

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  • Account Closed
    Professional Auctioneer · Baltimore, MD · Member since 2015 · 1k+ posts · 1k+ votes
    9y

    1 how can buying real estate or controlling it at an acceptable price with the seller and reselling that property or assigning it to another for a higher price be illegal. I don't think you will have a problem.

    2 as long as you are not representing others and you represent yourself only -- you do not need a brokers license.
    3 you need to have an agreement with the seller that says you have right of possession or right of entry by appointment to show the house to your assignee.
    4 you need to make full disclosures, let the seller know that it is your objective to earn a reasonable profit. You don't want to hide anything in a closing.
    5 you will not be fined, but you could lose your deposit or lose the transaction. Make sure you have a long closing date, use banking days in your contract. Use this clause: if this contract offer is not assigned during the life of this agreement, buyer has a right to withdraw from this offer without penalty and a refund do deposit.

    You should study power prospecting, contract engineering, and negotiations before starting your exciting journey as a real estate investor.

    2Reply
  • Jesse Patterson
    OP
    Winston Salem, NC · Member since 2017 · 10 posts · 9 votes
    9y

    Thank you very much for that information Charles! Now that I have these questions out of the way I'm going to follow your advise and study power prospecting, contract engineering, and negotiations. Again thank you very much for this much needed information. Have a great day sir!

    0Reply
  • Tom S.
    Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
    9y

    @Jesse Patterson  Welcome to BP Jesse! I would add, for areas to study: real estate numbers.  You need the ability to distinguish a good deal from a mediocre deal.  Many new people tend to over estimate the value of a property and under estimate the rehab costs.   You should be able to understand an area and know what houses have sold for as you're driving down the street.  You need to be able to walk into a house and roughly know the numbers just by the condition (in my area I can do a gut rehab at $40/SF, so walking into a 1,200 SF house, I know I'll be into it for at least $48k).

    As a buy and hold investor, I've had wholesalers present "deals" to me that I passed on, because the numbers weren't good.  Understanding numbers is critical.

    Good luck!

    - Tom

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  • Account Closed
    Professional Auctioneer · Baltimore, MD · Member since 2015 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Jesse Patterson:

    Thank you very much for that information Charles! Now that I have these questions out of the way I'm going to follow your advise and study power prospecting, contract engineering, and negotiations. Again thank you very much for this much needed information. Have a great day sir!

     Where are you going to find someone to teach you those concepts?

    1Reply
  • Jesse Patterson
    OP
    Winston Salem, NC · Member since 2017 · 10 posts · 9 votes
    9y

    @Tom S. 

    Thank you for that information. Have you ever used the wholesale calculator? If so is it any good?

    @Charles Parrish

    I'm not exactly sure. Would it be a good idea to reach out to some successful investors/wholesalers in my area? Most of the information I find is through google searches or youtube etc. The reason being I just feel like no one in my area would be willing to help me as I can provide them nothing in return.

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