Wholesaling in a million dollar neighborhood

14 Replies

Finally taking some action and meeting with my first motivated seller today. Unlisted property in a area listing houses for a million dollars, actual comp are in 750-800 range, he's got a unique setup so a hard comp is difficult to find.

He doesn't want to deal with updating and repair, said he was looking to just off load the property for a "wholesale" price. (Not sure if it was just used as a term or he knows the real estate market).

Trying to find a contract so I can find a Flipper but worried about New York (Rockland Specific) specifics and my keyword filters have left me with not much to go on. Calling real estate attorneys in my area hoping they would review a contract for me today, waiting to the last minute isn't something I like to do but I the seller called me last night. 

We weren't planning on starting with wholesaling but opportunity is present but capital on this scale amount isn't there, plus its our first deal, planning on giving up most of the assignment fee if I can get some local mentor ship.

Is anyone familiar with New City, New York in Rockland county?

Hi @Michael Perez and congratulations on the motivated seller lead!

Yes, I am familiar with New City, having traveled there repeatedly to visit family.

Do you know if there is debt on the property, or if it's owned free and clear by the seller? Also, is anyone currently living in the house?

[Solicitation Removed by Moderators]

@Mitch Messer, thank you. Owner still has a standing loan, property has been rented out for the last 7 years and it was last updated around 20 years ago, property was last listed in 2011.

Just knowing how the different towns in Rockland work I know that the Clarkstown municipality is a pain so I want to do as much right as I can. I know mistakes are on the way and I can do nothing but learn from them. 

Originally posted by @Michael Perez :

Finally taking some action and meeting with my first motivated seller today. Unlisted property in a area listing houses for a million dollars, actual comp are in 750-800 range, he's got a unique setup so a hard comp is difficult to find.

He doesn't want to deal with updating and repair, said he was looking to just off load the property for a "wholesale" price. (Not sure if it was just used as a term or he knows the real estate market).

Trying to find a contract so I can find a Flipper but worried about New York (Rockland Specific) specifics and my keyword filters have left me with not much to go on. Calling real estate attorneys in my area hoping they would review a contract for me today, waiting to the last minute isn't something I like to do but I the seller called me last night. 

We weren't planning on starting with wholesaling but opportunity is present but capital on this scale amount isn't there, plus its our first deal, planning on giving up most of the assignment fee if I can get some local mentor ship.

Is anyone familiar with New City, New York in Rockland county?

 Don't wholesale million dollar houses. Not because you can't, but because this is simply not ideal.

The best houses to flip are withing 130K to 300K range

These move quickly and most people can afford them, AND the finishes are easy. When you are dealing with MM dollar homes, dude, nothing makes sense anymore. Suddenly a kitchen can range between 50K to 300K (that is more expensive than a fully pimped normal house here). So how are you going to justify the market price when the houses range from 700K to 2MM for the same squarefootage.

And there are not many flippers that want o deal with the risk.

I would really just walk away from this one brother.

Thanks for the advice, you got good points you pointed out my same fears. It's just too much for me to take on. Still gonna walk it to see what 800k would buy me but doubt I will go further then that. 

Originally posted by @Michael Perez :

Thanks for the advice, you got good points you pointed out my same fears. It's just too much for me to take on. Still gonna walk it to see what 800k would buy me but doubt I will go further then that. 

 Totally Hermano!

Other than experience, it is fun to walk into these houses and check them out :)

@Jerryll Noorden

I’m with you. I flip in the same $ range, more so $150k’s in my area. Don’t have to wait long for a solid contract. I did a 600k flip recently ($ for my area) and man it wasn’t worth it.....so many other things matter. Stick to the mass of markets.

The only people that can wholesale in the 1m range have been doing it for many, many years and have the cash to float the timeframe when it goes long. It didn't sound like from your post that you have been doing this for long. People who want to sell quick in that range want to see the money and often times when you try to wholesale it out, at that price, you will have the same issue. A lot of people will be interested, but will have to talk to some partners or something else. You will get stuck in an uncomfortable position. I wouldn't even walk it if you don't have the cash or contacts to close the deal for him, it could blow back on you as you start trying to wholesale. You don't know who he knows. Higher priced wholesale sellers may know others of the same.

Moderator Notes: You are not allowed to solicit or do any deal making in the forums outside of the marketplace threads. Follow the rules please.


I don’t have all the facts here but based on what you have stated thus far, it does. It sound like you have much of an opportunity with a wholesale transaction here. That said, it is very possible to wholesale or flip these higher end properties, I do it all day long as my area here in So Cal has High price points.

In an attempt to get something from this lead, may I recommend you get in touch with one of your agents on your team that deals with investors and properties in need of repairs, hook that agent up with the seller and ask the agent to give you a discount on your next listing with them (they can’t pay an unlicensed person a referral fee). Maybe you Bank some good will or love in the future with that agent and even with this seller.

Other than that, get into some deals within your price point you can handle and make sure you have your education and team in place before that.

Thanks for the feedback @Will Barbard & @Jonathan Greene. I'm very much still in the beginning steps of my real estate investing career. My team right now is just my partner who is employed full time and myself and I'm lucky enough to know a real estate attorney. But funny thing is the house was never on my radar actually. I contacted the seller regarding another of his properties and he asked me to come check it out. 

We were too far out on our numbers to make a decent deal, but going to do the walk thru I made a contact. He actually has 3 homes on a list I purchased, this was his original home before he downsized. 

I will defiantly avoid million dollar area's whenever I can, problem is I got a list and its already skip traced. I gave bad perimeters of what I was looking for and I have homes on the list scaling from 100k to over a million. If I scrapped the list I lose money and opportunity and experience, cold calling scares the ever living love out of me. But if I don't get used to it my REI career is over before it starts.

Most people who will show up on that list with multiple properties held for 15+ years are going to be old school. They don't deal the way most people on here understand investing to be. Those guys, like the one you mentioned, who you call on one and then they have ten will do deals, but you have to have cash or be able to take something off their hands that is their worst property. There is one potential option with sellers like the one you are talking about. They are usually the most amenable to seller financing on lower deals because it's no skin off their backs and they don't need the cash and capital gains. Something to keep in mind as you develop that relationship. I agree with @Will Barnard that you need an outlet source, referral for the properties that are out of your cash range or skill range since you are just getting started.

Yes, he understood the real estate game. I'm looking for opportunities wholesale is just one of them. That list I got actually introduced me to someone who's building up and REI school in my area as welll as a real estate agent. Currently we don't have any REI meetups in the area, a community in the county has a real presence with REI with money to back it so it is hard to butt in.

I am working on my knowledge, getting my real estate license and trying to network with everyone who I can. The feedback I'm getting will take me to the next leg of my journey even if it's painful feedback, because there is no turning back.