New to real estate wholesaling!

9 Replies

@Collin Sherburne

Such a wide open statement.  Someone could write a book trying to respond.

So start there.  I suggest reading, "If you can't wholesale after this... I've got nothing for you."

There are also countless podcasts, YouTube videos, etc.

Learn all you can, then look to fill any blanks you have left over.

Understand you need to be prepared for the long haul.  Consistency will get you where you want to go.

Originally posted by @Collin Sherburne :

New to wholesaling and appreciate all the advice I can get!

 

If I were you i'd toss the wholesaling plan out the window. Despite what you may have read or seen online it's actually a terrible business model and almost always illegal. The only ones making any money in that industry are the guys selling the course to hopeful real estate investors. (many of those guys end up being sued btw)

Smarter way to transact business in a similar capacity to what you probably like about wholesaling would be getting a real estate license and selling properties that way. Just because you are an agent doesn't mean you've got to drive people around town looking at families. I've sold $200M+ and there is a zero 0% chance you'll catch me driving buyers around town.

Anyway give it some thought and good luck to you my man.

@James Wise

With the appropriate contracts from a real estate attorney, who is familiar with the wholesaling process, how is it "almost always illegal"? If so, why do so many real estate professionals suggest wholesaling? 

Thanks,

@Collin Sherburne  As a new investor getting into Real Estate Wholesaling myself, here are some quick tips from my experience:

  • Consult with professionals in your local area to discuss legal, tax and business strategies.  I suggest a Real Estate Attorney, an Accountant, and any business experts in your area.
  • Take the time to develop a well thought business model and plan for wholesaling properties.  Ask yourself: How am I going to find ideal properties to wholesale (Drive for Dollars, Cold Calling, SkipTrace, etc.)?  Have I put together a Buyer's List of local investors who would be interested in buying these potential investment properties?  Do I have the Contracts in place to assign a deal from a seller to a buyer?  As I am new to the game with minimal experience, have I done all that I can to mitigate my risk?
  • Set up processes that work for you so you can stay motivated and consistent with your work as a wholesaler.

Stephen 

@Wayne Brooks thank you for the information. 

It is to my understanding that while State Statue 475.43 is pertinent to buying/selling real estate, it is not necessarily applicable to "wholesaling." Based on our research and consulting with our RE attorney, I will attempt to sum it up. "Wholesaling" is not a precise legal term and the wholesaler is not buying/selling the property, they are selling the contract to the property. That's why the phrase "assigning the contract" is commonly used in conjunction with the term "wholesaling."

If you understand this differently, please let me know.  I definitely plan to reconfirm this Statute (and practice) with our RE attorney.

Thank you for the information!

Wesley Davis

@Wesley Davis Yes, that is the common defense....we are selling a contract, not a house. But if you read the pertinent section, once you start advertising the house features, you’re in violation of the law and they have been pursuing some of the wholesalers. 

Originally posted by @Wesley Davis :

@James Wise

With the appropriate contracts from a real estate attorney, who is familiar with the wholesaling process, how is it "almost always illegal"? If so, why do so many real estate professionals suggest wholesaling? 

Thanks,

 I don't know of any legitimate real estate professionals suggesting wholesaling.