I have read on wholesaling but everyone seems to have different opinions on it. Most of what I have read is pretty much me (the wholesaler) dealing directly with a homeowner that is motivate to sell. My question is if a property is listed on the MLS with an agent is it possible for me to place an offer before i have financing lined up? The property seems like a good deal and I am genuinely interested in purchasing it but if for some reason I cannot find financing can i assign the contract to someone else for a profit?
Mauricio, a few tips that will hopefully help you:
1. Take a wholesale training course. There are many free ones and paid versions.
2. "Normally" if a property is listed on the MLS it is not a good property for a wholesale deal. The profit margins are not as great when a realtor is involved. Remember, they have to get paid as well normally 6% of sales price. One of the main goals of a wholesaler is to get the property under contract BEFORE a realtor does, and that is why many realtors do not like wholesalers (they are some other reasons as well). Many realtors see us as their competition.
3. You stated you are looking to purchase the property, the main purpose of wholesaling is that you do not have to purchase the property. You simply need to get the property under contract and have a controlling interested in the property without purchasing it and than assign the property hopefully to a cash buyer. That is why I listed #1 as "take a wholesale training course".
I hope these tips help you out. Much success.
Sure, but remember it is the agents job to make sure they accept the best offer from a qualified buyer. If you aren't able to talk the talk or walk the walk. They are likely not going to work with you. Also, if you are making offers on deals on the MLS you are competing with the very investors you hope to wholesale this deal to.
The agent doesn't need you to try and sell the deal. Its on the MLS, its available for all buyers to see on the internet already. Trying to wholesale from the MLS in a hyper competitive market provides zero value. This is why trying to wholesale off the MLS is very difficult. In theory all these ideas can work, in practice it is very difficult and unlikely to occur. The best way to successfully have a deal in Southern California worth a damn is seller direct. Anything else is likely wasting the agents and their clients time, yours and potential buyers.
@Tim G. Thanks that makes sense I spoke to an agent about the whole scenario and he told me I've been watching too many BP podcasts lol. He said it does not really work in the real world so I guess he is somewhat right and looks at it more from the real estate agent prospective and not so much the buyer side.
There are some individuals that will provide you with the earnest money to get the property under contract while you wholesale it here in SD depending on the scenario. Feel free to PM me for a possible source for earnest money source (private) or long term financing (bank).
@Thom MacFarlane good to know.
Originally posted by @Mauricio Salom :
@Tim Gordon Thanks that makes sense I spoke to an agent about the whole scenario and he told me I've been watching too many BP podcasts lol. He said it does not really work in the real world so I guess he is somewhat right and looks at it more from the real estate agent prospective and not so much the buyer side.
Glad I could help, people do wholesale off the MLS but its threading a needle. It requires high level abilities, I'm a full time wholesaler and very successful in San Diego and I've done it once or twice in seven years. The seminars or podcasts can explain the theory of it but yes, in practice good luck. It doesn't benefit the agent or the seller, and the agent is the gatekeeper.
Also, you don't need a service to borrow funds to make this happen. That is what the buyer would be responsible for should you succeed at wholesaling it. Any service telling you otherwise is a service, trying to make money off you.
@Tim G. Know any tittle companies around the SD area ?