Wholesaler · Detroit, MI · Member since 2016 · 70 posts · 28 votes
I have this property I’m going to get under contract but before I did I’ve been marketing like crazy on Craigslist, Facebook, Instagram to see if any buyer would be interested before I get it under contract. I have no one interested after a couple weeks of putting it out there.
Now I’m think the price is too high
Ok it’s 2 tenant occupied properties both 3/1 both been renovated & have a finished basement
1 is a 751 sqft ARV is around $80k I’m selling it for $51k
The other is 1027sqft ARV around $90k I’m selling it for $64k
I don’t know what numbers to use to get the MAO I’m sure the seller would change the price I just don’t know what to offer to appeal cash buyers
Thank you for your input. But I am wholesaler nothing more or less. I assign my contracts to investors which is completely legal in my city. It would be helpful if you wanted to comment to answer my question instead of speaking on things you seem not to know!
You can call it whatever you like but what you are doing (or attempting to do) is brokering real estate.
As they say you can lead a horse to water.........
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
7y
@Shanae Williams Best guess is that the numbers are off. If the place #1 for example, is truly worth $80k as is (you said they're turnkey), and you're selling it for $51k, I think you would have takers.
But why would the seller do that, why not just list with a realtor and pay the 6% commission? The seller would walk with $75k instead of the $50k you're offering.
Wholesaler · Detroit, MI · Member since 2016 · 70 posts · 28 votes
7y
@Tom S. I’ve went through the numbers a couple times to check. I’m not sure if this the right way but I get the comps x by how many properties I’ve used then x .75 - 10k for repairs (just in case but they are fully renovated) - 5k (my assignment fee) and I came up with a number and I got it under contract for almost 10k from that number.
I’m not sure why but we’ve built a relationship and he wants to sell them with me.
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y
@Shanae Williams. Why are you marketing a property you don’t have under contract? That sounds like it could be a violation of your state licensure laws
I have this property I’m going to get under contract but before I did I’ve been marketing like crazy on Craigslist, Facebook, Instagram to see if any buyer would be interested before I get it under contract. I have no one interested after a couple weeks of putting it out there.
Now I’m think the price is too high
Ok it’s 2 tenant occupied properties both 3/1 both been renovated & have a finished basement
1 is a 751 sqft ARV is around $80k I'm selling it for $51k
The other is 1027sqft ARV around $90k I'm selling it for $64k
I don't know what numbers to use to get the MAO I'm sure the seller would change the price I just don't know what to offer to appeal cash buyers
Before getting into the weeds on everything above what you need to understand is that you are engaging in an activity called Brokering Real Estate. To Broker Real Estate one needs a license in most (if not all) 50 states. I would look into Real Estate license schooling before pursing anything above any further.
Wholesaler · Detroit, MI · Member since 2016 · 70 posts · 28 votes
7y
@James Wise
Thank you for your input. But I am wholesaler nothing more or less. I assign my contracts to investors which is completely legal in my city. It would be helpful if you wanted to comment to answer my question instead of speaking on things you seem not to know!
Thank you for your input. But I am wholesaler nothing more or less. I assign my contracts to investors which is completely legal in my city. It would be helpful if you wanted to comment to answer my question instead of speaking on things you seem not to know!
You can call it whatever you like but what you are doing (or attempting to do) is brokering real estate.
As they say you can lead a horse to water.........
Real Estate Broker · Dayton, OH · Member since 2016 · 22 posts · 17 votes
7y
@Shanae Williams you didn’t have a contract and were marketing a property as you clearly stated... I’m not a lawyer but as others have previously mentioned that is more than likely illegal... to market properties you need a license... wholesalers market their equitable interest (a signed valid contract would be your interest) not the property.... there is a difference and that difference could cost...
I’m not a wholesaling pro, but I’d definitely recommend studying further to keep your self out of trouble!
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y
@Shanae Williams being a wholesaler doesn’t absolve you from the licensing laws if they exist. Even if they don’t, you’re trying to sell a property you don’t control, since you didn’t have a contract.
Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
7y
Haha This is wonderfully amusing...
So, you don't know what the heck you are doing, and can't figure out why. You post on the world's largest RE platform looking for input. a bunch of people are telling you that at the very least you are a fool, and more than likely you are breaking State statutes...
You argue!
Remove yourself from this situation and look at this as a 3rd party. Do you see how this makes no sense? There are only 2 options - either you are right and everyone here is wrong ( James happens to be one of the most experienced folks here), or the opposite...
Wholesaler · Detroit, MI · Member since 2016 · 70 posts · 28 votes
7y
@Ben Leybovich
You are a fool for commenting on a post your opinion instead of answering the actual question. Did it make u feel better to call me a fool and come on here and put your 2 cents in.
Go back to sleep Ben. I was already informed not to market without a contract but I do have a contract signed now so it’s no problem.
Good day!
You are a fool for commenting on a post your opinion instead of answering the actual question. Did it make u feel better to call me a fool and come on here and put your 2 cents in.
Go back to sleep Ben. I was already informed not to market without a contract but I do have a contract signed now so it’s no problem.
Good day!
What you have not been informed of is that now instead of marketing a property, which was illegal, you are no marketing a contract, which is a security. You are doing so without a license. Quite possibly this is still illegal :)
Wholesaler · Detroit, MI · Member since 2016 · 70 posts · 28 votes
7y
@Tom S.
Thank you! You were so helpful even @Caleb Heimsoth you informed me on something I did not know!
I appreciate all the advice here but to continue to say the say the same thing over n over after I already said I didn’t know and now I have the contract signed ... what’s next ... that’s all I was asking in the first place.
@Ben Leybovich
Shame on you! For calling me a fool, very impolite of you to be a member of this forum and instead of providing information to my question you decide to ridicule! Stay blessed!
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
7y
@Shanae Williams Thank you! Now that you have it under contract the next step is to blast it out to everyone you know. If you attend local REI meetings, present it there too.
I'm not a wholesaler but as a buyer in Vermont in the past, I've had wholesalers contact me and present me with properties. From there, I would have an attorney (or title company, depending on your state) handle the details of assigning it to me, and I would complete the purchase. You could get paid a fee out of that transaction.