Wholesaling Business Advice

5 Replies

I am starting a wholesaling business in the Northeast Ohio area; I want to go about this in the most structured way possible (I know you can only prepare so much) so I am looking for any advice from those with experience wholesaling (on how you set up your business, how you market, things you would have done differently etc.). I have been doing a ton of research (articles, podcast, biggerpockets etc.) and I understand this is not an easy, get rich quick scheme. I AM willing to put in the time and the effort necessary to get it going.  

I am also a licensed agent so I am looking to add this to my real estate business (not sure if that changes anything)

Any advice etc. would be greatly appreciated. Than 

Originally posted by @Antonio Williams :

I am starting a wholesaling business in the Northeast Ohio area; I want to go about this in the most structured way possible (I know you can only prepare so much) so I am looking for any advice from those with experience wholesaling (on how you set up your business, how you market, things you would have done differently etc.). I have been doing a ton of research (articles, podcast, biggerpockets etc.) and I understand this is not an easy, get rich quick scheme. I AM willing to put in the time and the effort necessary to get it going.  

I am also a licensed agent so I am looking to add this to my real estate business (not sure if that changes anything)

Any advice etc. would be greatly appreciated. Than 

Getting your Realty business going would be a much more profitable task. I'd caution you against wholesaling as the general premise of wholesaling would go against your fiduciary responsibility to the general public of being open & honest about the true value of any real estate.

In addition to what James said, I've heard a lot of knowledgeable people say that wholesaling is actually illegal in Ohio. It's come up here a lot in the forums, so I'd lawyer up and find someone who really knows their way around the local market. Don't take advice from out-of-staters on the wholesaling rules. And yes, I say this as someone from out of state. But I do own property out there :)

Wholesaling is not illegal anywhere....it depends on what your definition of wholesaling is, there's a right way and a wrong way to do it. Also I know a lot of agents here in cali that are also "wholesalers" and there's nothing wrong with working both angles. Ohio has stricter guidelines but it's not illegal as long as you either "assign" your purchase agreements or you can use transactional funding to do a back to back escrow. I've done both many times and structured deals every which way. I'm in socal (one of the most competitive markets) and I've had great results with direct mail....my advise would be to set a marketing budget of whatever you can afford on a 90-120 day period and then set your marketing up on a 6 week cycle.
Here's what I been doing
18,000 leads split between absentee owners and pre forclosures
I send out 3000 cards a week and then recycle after 6 weeks .
And as far as your obligation as a agent to represent your sellers and buyers, thats all circumstantial....if you get calls from people with turn key houses and no motivation than I would suggest you offer to list there house for them in a tradition manner, but when someone calls in a jam that needs a quick cash sale than go the wholesale route and you will be relieving them of a big problem and everyone will be happy.
Good luck let me know if you need any other advise I'm glad to help I'm crushing it here in cali

I really appreciate all of the helpful words. When I set up my business, being that I am an agent, I would make this transparent with my customers (not trying to be a dishonest agent) and try to help them out in a way that best fits their needs. 

I will seek advice from a local real estate attorney regarding the legality in the state of Ohio.  

Thanks for any and all advice. it's great to see people helping people, which is why I love this BiggerPockets community.

@Antonio Williams to fully cover yourself and be transparent, I would recommend disclosing the fact that you are an agent and intend to make a profit in your assignment agreement.

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