Wholesaler · Los Angeles, CA · Member since 2016 · 276 posts · 181 votes
About to pull the trigger.
After a year of education, dabbling, and talking with hundreds of investors, wanna be investors, and sellers, I'm taking massive (imperfect) action. I'm a college student with a couple grand.
My plan is to use listsource to generate 1063 names/properties of 39-100% equity, age 50-99, and built before 1987. Then we ship those names over to REIskip.com to obtain phone numbers of the individual and relatives at $0.24 per name. We also plan on purchasing a multiple phone-dialer (calls three numbers at once and first to pick up I get connected to then calls others right back) to pore through the names. We plan on doing this multiple times, and calling the sellers once a week until we get deals, or a motivated seller.
List: $214
Skiptrace: $255
Mojodialer: $150 per month
Total: $619
****will most likely do this every month with new zip codes
If you have money, spend it. If you have time, use it. I plan on calling for 2-3 hours everyday.
Any suggestions on how to do it a different or better way?
I love that you are a college student with some hustle! My suggestion is this. BE CAREFUL! Research The TCPA (telephone consumer protection act). You can’t call a consumer with automated technology, unless you have express written consent. Many people break this rule, but just be warned the fines can be stiff and painful. You also need to be aware of the Fed DNC. Last I checked If the numbers you are calling are registered on the DNC the penalty can be 16k per violation. Some attorneys make a living fielding unsolicited marketing calls, and sending out demand letters for unsolicited marketing calls.
The only truly compliant way to do what you are looking to do is to scrub out the following.
Cell phones
State DNC
Fed DNC
You will be left with non dnc landline numbers. You can hand dial (no automated dialers) these numbers.
Like I said many people break the rules, but eventually all will call the wrong person, and pay the price.
Hope this is helpful.
@William Brown The following Bigger Pockets thread may help. Gives both sides of the argument. Just make sure to consult with a local real estate attorney! BP Wholesaling Discussion
William, I think the best place for a young man such as yourself to get into real estate is not through wholesaling, for reasons others have stated, but house-hacking. You say your parents are paying your tuition, room and board. See if they wouldn't be willing to help you get an FHA kiddie condo loan. You don't have to buy a condo, you can buy any piece of residential property up to a fourplex. You and your parents cosign the loan together and you are only required to put 3% down. What you do is live in one room or one unit (depending on what you buy) and rent the rest. Often you can end up paying the mortgage without any money out of your own pocket or your parent's pocket beyond the down payment. Show this to your folks: http://kiddiecondoloans.com/kiddie-condo-loan-guid...
Don't yet have a decent credit score? If your parents have one here is how you get one if your parents have good credit. Have them add you as an additional user on one or two of their cards, preferably older ones. . They do not need to give you the card, but you will inherit their history on that card. I did this when my son was in college and he ended up with score of over 700.
William, I think the best place for a young man such as yourself to get into real estate is not through wholesaling, for reasons others have stated, but house-hacking. You say your parents are paying your tuition, room and board. See if they wouldn't be willing to help you get an FHA kiddie condo loan. You don't have to buy a condo, you can buy any piece of residential property up to a fourplex. You and your parents cosign the loan together and you are only required to put 3% down. What you do is live in one room or one unit (depending on what you buy) and rent the rest. Often you can end up paying the mortgage without any money out of your own pocket or your parent's pocket beyond the down payment. Show this to your folks: http://kiddiecondoloans.com/kiddie-condo-loan-guid...
Don't yet have a decent credit score? If your parents have one here is how you get one if your parents have good credit. Have them add you as an additional user on one or two of their cards, preferably older ones. . They do not need to give you the card, but you will inherit their history on that card. I did this when my son was in college and he ended up with score of over 700.
Demetrius Mathis was the one I was talking about in Jackson MS.. he got in massive trouble for selling homes he did not own.. I created a whole loan program just to keep him legal.. as one of the largest if not the largest funder of rehabber homes in Jackson I have a pretty good finger on the pulse there. and agree with you on house hacking
the lastest podcast 274 of a very successful brokerage owner first thing he said is you house hack first thing.
appreciate all the insight. Will probably start house hacking in the fall this year. My problem, (and greatest strength) is that in May naivety I don’t see limitations on ability. I can’t understand the value of saving for 2-3 years, buying a house and then doing that again and again, when I could just hustle my *** off and send deals to investors and take a cut along the way.
@Jay Hinrichs Right now have been hunting huge value add opportunity deals for my mentor/partner/buddy who has the ability to close and is guiding me through that process. I’m not reckless, nor signing anything or doing something I shouldn’t be. I’m flying the plane, but I’m having a licensed mechanic check my engine before I take off each time.
Essentially just using wholesaling as means to learn the business and practice my negotiation with sellers. Probably going on as acquisitions manager this summer with a loaded gun to go hunt some big deals.
@Jenny Moore appreciate the kind words, to a lot of people that energy comes off as arrogance. I’ll likely take my profile picture down as it’s impossible to actually talk real estate when I’m talking to someone way older—-because everyone is a genius to someone younger than them. I’m up at 7 am and go to bed at 1 6 days a week, hustling and hunting while my friends here st college are playing video games, drinking, and partying.
If you are partnering with someone already, who is going to buy what you find...out it on paper. You then are never a wholesaler but the acquisition arm
acquisition manager or field agent what have you.. all the bigger builders in our area have a w 2 employee that does just that.. its a great incubator.. and I mean great. you learn how to do development deals and that is where some big money is.
I paid a 125k assignment fee to someone last Aug. who brought me a 92 lot development.. the guy could not have done this by just being a wholesaler he had to know enough about the industry to write the correct contract plus he put up the first 50k of his own money to get into contract its a 7 million purchase.. I reimbursed him the 50k and gave him 125k assignment profit..
I have been thinking about this raging wholesale legal debate ..
and concluded this.. and I know this.. assigning a contract is contract law and is legal.. ergo me paying a 125k assignment fee.
whats NOT legal and what 99% of wholesalers do is they illegally market their contracts to be assigned.
this particular deal was done through the very tight knit developer community.. it was not e mailed out to thousand buyers there was no flyer going out to buyers list.. there was no website with the propery shown with the illusion this guy owned it.. it was a high level contractual transaction.. one of my guys introduced us.. I reviewed the deal and pulled the trigger NO MARKETING to the general public I think that is the distinction and where the states department of real estate has heartburn..
Getting the down-payment for a house hack is probably not going to cost your parents more than dorm rent for year, but I can understand your not wanting to go the BRRRR route. Incidentally I do not wait 2-3 years between purchases. Usually it is just a year, the time it takes me to get my last house refinanced. I started buying property in 2011 and now own eight houses in Mississippi and a condo in California. Okay, I live in one of those houses. But here is my question: What is the advantage of wholesaling over just becoming a real estate agent? Of my properties, only one was bought from a wholesaler and one was bought from a friend who was the owner/occupant. The rest I got through real estate agents or brokers. In fact, you can't get a HUD, FannieMae, FreddieMac, or Veterans foreclosure any other way. It seems to me your willingness to hustle will serve you just as well as a real estate agent and get you into less potential trouble. I don't have a real estate license myself but that is because if you are going the BRRR route, as I am, a real estate license increases your tax liability.
acquisition manager or field agent what have you.. all the bigger builders in our area have a w 2 employee that does just that.. its a great incubator.. and I mean great. you learn how to do development deals and that is where some big money is.
I paid a 125k assignment fee to someone last Aug. who brought me a 92 lot development.. the guy could not have done this by just being a wholesaler he had to know enough about the industry to write the correct contract plus he put up the first 50k of his own money to get into contract its a 7 million purchase.. I reimbursed him the 50k and gave him 125k assignment profit..
I have been thinking about this raging wholesale legal debate ..
and concluded this.. and I know this.. assigning a contract is contract law and is legal.. ergo me paying a 125k assignment fee.
whats NOT legal and what 99% of wholesalers do is they illegally market their contracts to be assigned.
this particular deal was done through the very tight knit developer community.. it was not e mailed out to thousand buyers there was no flyer going out to buyers list.. there was no website with the propery shown with the illusion this guy owned it.. it was a high level contractual transaction.. one of my guys introduced us.. I reviewed the deal and pulled the trigger NO MARKETING to the general public I think that is the distinction and where the states department of real estate has heartburn..
I’ve definitely envisioned switching my day job to working acquisition for restaurants (maybe retail, but Amazon) which I’ve been in for 12 years.
So on this 92 lot deal, this person put in 50k to be taken seriously? For something akin to an Earnest Money Deposit?
The distinction I believe you are trying to make when it comes to wholesaling is having a deal under contract and turning around using your network or tight knit closed door "buyer short list" to get someone to take your place or buy you out of your interest in the asset VS producing advertising copy that promotes the SALE of said asset as if you are in a JV or REPRESENTING the seller ( a Craigslist ad acting as an MLS listing)?
Do you know anyone that is currently doing this type of “wholesaling “ in commercial or multi family?
acquisition manager or field agent what have you.. all the bigger builders in our area have a w 2 employee that does just that.. its a great incubator.. and I mean great. you learn how to do development deals and that is where some big money is.
I paid a 125k assignment fee to someone last Aug. who brought me a 92 lot development.. the guy could not have done this by just being a wholesaler he had to know enough about the industry to write the correct contract plus he put up the first 50k of his own money to get into contract its a 7 million purchase.. I reimbursed him the 50k and gave him 125k assignment profit..
I have been thinking about this raging wholesale legal debate ..
and concluded this.. and I know this.. assigning a contract is contract law and is legal.. ergo me paying a 125k assignment fee.
whats NOT legal and what 99% of wholesalers do is they illegally market their contracts to be assigned.
this particular deal was done through the very tight knit developer community.. it was not e mailed out to thousand buyers there was no flyer going out to buyers list.. there was no website with the propery shown with the illusion this guy owned it.. it was a high level contractual transaction.. one of my guys introduced us.. I reviewed the deal and pulled the trigger NO MARKETING to the general public I think that is the distinction and where the states department of real estate has heartburn..
I’ve definitely envisioned switching my day job to working acquisition for restaurants (maybe retail, but Amazon) which I’ve been in for 12 years.
So on this 92 lot deal, this person put in 50k to be taken seriously? For something akin to an Earnest Money Deposit?
The distinction I believe you are trying to make when it comes to wholesaling is having a deal under contract and turning around using your network or tight knit closed door "buyer short list" to get someone to take your place or buy you out of your interest in the asset VS producing advertising copy that promotes the SALE of said asset as if you are in a JV or REPRESENTING the seller ( a Craigslist ad acting as an MLS listing)?
Do you know anyone that is currently doing this type of “wholesaling “ in commercial or multi family?
I personally don't but I suspect there are some
I did get a call or Pm one time from some guys that wanted to create a bizz model just wholesaling MF.. I have never seen or heard from them again.. but that does not mean it does not happen
and remember this guy I paid the 125k to he knew how to write a proper contract that was something I could work with taking down a 7 million dollar purchase..
acquisition manager or field agent what have you.. all the bigger builders in our area have a w 2 employee that does just that.. its a great incubator.. and I mean great. you learn how to do development deals and that is where some big money is.
I paid a 125k assignment fee to someone last Aug. who brought me a 92 lot development.. the guy could not have done this by just being a wholesaler he had to know enough about the industry to write the correct contract plus he put up the first 50k of his own money to get into contract its a 7 million purchase.. I reimbursed him the 50k and gave him 125k assignment profit..
I have been thinking about this raging wholesale legal debate ..
and concluded this.. and I know this.. assigning a contract is contract law and is legal.. ergo me paying a 125k assignment fee.
whats NOT legal and what 99% of wholesalers do is they illegally market their contracts to be assigned.
this particular deal was done through the very tight knit developer community.. it was not e mailed out to thousand buyers there was no flyer going out to buyers list.. there was no website with the propery shown with the illusion this guy owned it.. it was a high level contractual transaction.. one of my guys introduced us.. I reviewed the deal and pulled the trigger NO MARKETING to the general public I think that is the distinction and where the states department of real estate has heartburn..
I’ve definitely envisioned switching my day job to working acquisition for restaurants (maybe retail, but Amazon) which I’ve been in for 12 years.
So on this 92 lot deal, this person put in 50k to be taken seriously? For something akin to an Earnest Money Deposit?
The distinction I believe you are trying to make when it comes to wholesaling is having a deal under contract and turning around using your network or tight knit closed door "buyer short list" to get someone to take your place or buy you out of your interest in the asset VS producing advertising copy that promotes the SALE of said asset as if you are in a JV or REPRESENTING the seller ( a Craigslist ad acting as an MLS listing)?
Do you know anyone that is currently doing this type of “wholesaling “ in commercial or multi family?
I personally don't but I suspect there are some
I did get a call or Pm one time from some guys that wanted to create a bizz model just wholesaling MF.. I have never seen or heard from them again.. but that does not mean it does not happen
and remember this guy I paid the 125k to he knew how to write a proper contract that was something I could work with taking down a 7 million dollar purchase..
Contract law and anything state specific about transfer. A contract with desirable terms. Are we talking about a homemade contract or something state and asset type specific?
Like I mentioned before I’m seriously considering putting something together like that as we speak or taking it down myself and figure out the financing.
Your input in this area of REI has actually inspired me to finish getting my license. Thank you
Once again, we’re ignoring the question and turning this into a fight about wholesaling. Why must this keep happening? He asked about his marketing strategy.
I randomly came across this post. I saw your question and it got me interested in how Will has done in his RE career. I really wasn't expecting much or even anything at all. But, I was pleasantly surprised. He was featured on a podcast that was pretty inspiring, especially considering the responses on this post were primarily negative.