I got my 1st virtual wholesale contract now what?šŸ˜°

Wholesaling
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I got my 1st virtual wholesale contract now what?šŸ˜°

Luis Serrano
Rental Property Investor Ā· Nyc Ā· Member since 2020 Ā· 51 posts Ā· 72 votes

Iā€™m from NYC and I got into virtual wholesaling. I got a property under contract in kiln, Mississippi with a nice spread... Iā€™m sourcing a way to market this property to investors.... any suggestions?

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Frank Raciti
Investor Ā· Whitehouse Station NJ Ā· Member since 2020 Ā· 12 posts Ā· 76 votes
5y

Doing deals virtually, sight-un-seen is here to stay. Last I checked, Mississippi isn't on Mars. Every market has it own idiosyncrasies. Hopefully someone from the area will offer to help a fellow investor out in stead of telling you what a mistake you've made.

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  • Susan Maneck
    Investor Ā· Jackson, MS Ā· Member since 2014 Ā· 1k+ posts Ā· 769 votes
    5y

    You are in New York trying to whole sale a property in Mississippi? Good luck with that! 

    21Reply
  • Zapata Tate
    Charlotte, NC Ā· Member since 2019 Ā· 21 posts Ā· 33 votes
    5y

    @Luis Serrano

    Hi Luis. There are several people doing exactly what you're doing. You can use tech, like PropStream to find and make a list cash buyers then skip trace them. There is FB Marketplace and BP marketplace, too. I wish you the best.

    24Reply
  • Zapata Tate
    Charlotte, NC Ā· Member since 2019 Ā· 21 posts Ā· 33 votes
    5y

    @Luis Serrano

    You can also talk with your title company or real estate attorney. Sometimes agents can help... sometimes. And, of course, networking.

    6Reply
  • Brandon VukelichBusiness Member
    Real Estate Broker Ā· Tacoma, WA: šŸ¢ 27 LTRs šŸ” 3 STRs Ā· Member since 2018 Ā· 546 posts Ā· 456 votes
    5y

    @Luis Serrano I feel like you're working backwards. Build a buyers list first, then bring them properties.  You've obviously invested time and resources to find a deal but you didn't have a plan on the next steps?  There is so much information and tools available on how to start and operate a wholesale biz. Best wishes on your journey.

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    17Reply
  • Luis Serrano
    OP
    Rental Property Investor Ā· Nyc Ā· Member since 2020 Ā· 51 posts Ā· 72 votes
    5y

    @Susan Maneck is it because Iā€™m virtually doing this or because of the lack of investors in this area?

    0Reply
  • Steve Morris
    Real Estate Broker Ā· Portland, OR Ā· Member since 2019 Ā· 4k+ posts Ā· 2k+ votes
    5y

    "I got a property under contract in kiln, Mississippi with a nice spread.."

    So you've never seen the property and you know you have a nice "spread".  Pray tell, what substantive facts are you in reliance on?

    America is truly great when people without licenses can sell real estate with ZERO funds they've never seen at a price they don't tell the seller about to someone they don't know.

    25Reply
  • Susan Maneck
    Investor Ā· Jackson, MS Ā· Member since 2014 Ā· 1k+ posts Ā· 769 votes
    5y
    Originally posted by @Luis Serrano:

    @Susan Maneck is it because Iā€™m virtually doing this or because of the lack of investors in this area?

    It is because you apparently don't know the area. Foundation problems are endemic to Mississippi. If you've never seen the property how would you or your buyer know if the property in question has this problem? Yes, there are plenty of investors in Mississippi, but we live here and know what we are doing. I've never bought a property I couldn't inspect. Also, there are all kinds of legal problems with wholesaling in Mississippi. Still we do have plenty of wholesalers but they are all local too. I've only bought one of my properties from a wholesaler and it was because it couldn't qualify for a loan because of a second house on the property that was probably built with a permit. Since I already own five houses on that same street I was willing to take a chance. 

    6Reply
  • Susan Maneck
    Investor Ā· Jackson, MS Ā· Member since 2014 Ā· 1k+ posts Ā· 769 votes
    5y

    Also, Kiln, Mississippi was hit pretty hard by Katrina. Do you know if this property suffered flood damage? 

    2Reply
  • Alyssa Dyer
    Rental Property Investor Ā· Oklahoma City, OK Ā· Member since 2017 Ā· 1k+ posts Ā· 694 votes
    5y

    @Luis Serrano

    Follow This Mom Flips!! Sheā€™s great and teaches about this exact thing.

    10Reply
  • Tony Mai
    Rental Property Investor Ā· Los Angeles, CA Ā· Member since 2016 Ā· 137 posts Ā· 80 votes
    5y

    @Luis Serrano I respect your drive and effort to make money wholesaling. Best way to market is reach out to agents in the area. Look them all up and start with the busiest one and go down the list. Donā€™t let noā€™s stop you from achieving your goals. There is always someone wanting to make money. You just need to get connected if it is a good deal. Have your numbers ready and present. Good luck!

    21Reply
  • Luis Serrano
    OP
    Rental Property Investor Ā· Nyc Ā· Member since 2020 Ā· 51 posts Ā· 72 votes
    5y

    @Alyssa Dyer will do

    0Reply
  • Luis Serrano
    OP
    Rental Property Investor Ā· Nyc Ā· Member since 2020 Ā· 51 posts Ā· 72 votes
    5y

    @Tony Mai thanks Tony.... I needed that...

    3Reply
  • Robert Duncan
    Developer Ā· CT Ā· Member since 2014 Ā· 24 posts Ā· 56 votes
    5y

    @Luis Serrano

    You can make it happen. People do it all the time. Try and get some trustworthy people to help along the way.

    9Reply
  • Frank Raciti
    Investor Ā· Whitehouse Station NJ Ā· Member since 2020 Ā· 12 posts Ā· 76 votes
    5y

    Doing deals virtually, sight-un-seen is here to stay. Last I checked, Mississippi isn't on Mars. Every market has it own idiosyncrasies. Hopefully someone from the area will offer to help a fellow investor out in stead of telling you what a mistake you've made.

    46Reply
  • Luis Serrano
    OP
    Rental Property Investor Ā· Nyc Ā· Member since 2020 Ā· 51 posts Ā· 72 votes
    5y

    @Robert Duncan thanks for the advice.

    0Reply
  • Luis Serrano
    OP
    Rental Property Investor Ā· Nyc Ā· Member since 2020 Ā· 51 posts Ā· 72 votes
    5y

    @Frank Raciti thank you frank.

    1Reply
  • Steve Morris
    Real Estate Broker Ā· Portland, OR Ā· Member since 2019 Ā· 4k+ posts Ā· 2k+ votes
    5y
    Originally posted by @Frank Raciti:

    Doing deals virtually, sight-un-seen is here to stay. 

    You first.

    If you really want to tie up a lot of money in a property you know nothing about and haven't seen, go right ahead.

    1Reply
  • Frank Raciti
    Investor Ā· Whitehouse Station NJ Ā· Member since 2020 Ā· 12 posts Ā· 76 votes
    5y

    If @Luis Serrano was in a market I knew anything about, I WOULD be the first to help him. He said he has a contract. I would think the only money he "Tied up" is a small earnest money deposit. Probably a couple of hunder dollars. Where did he say he knows nothing about the property? He does business in NYC. I promise you he's smart and knows what he has contracted for. He just said I'll lock it down and figure it out from there. Takes balls for sure but with NY smarts and those kind of balls, he's on his way. 

    27Reply
  • Luis Serrano
    OP
    Rental Property Investor Ā· Nyc Ā· Member since 2020 Ā· 51 posts Ā· 72 votes
    5y

    @Frank Raciti got me fired up... thanks frank....šŸ’ŖšŸ¼

    4Reply
  • Joe S.Pro Member
    Investor Ā· San Antonio Ā· Member since 2020 Ā· 3k+ posts Ā· 3k+ votes
    5y
    Originally posted by @Luis Serrano:

    @Frank Raciti got me fired up... thanks frank....šŸ’ŖšŸ¼

     Keep in mind some of the people cheering you on has never done wholesaling themselves. Wholesaling is not easy regardless of what the guru selling the courses will tell you. I have wholesaled some properties before ,but it was not because I was trying to find properties to wholesale it was because I do a lot of marketing for myself and from time to time there is a property that simply fits the wholesale model and I have my hands full with other projects.  Are you prepared to spend big bucks monthly marketing? If you are in a competitive market you will need to figure out a way of getting lead flow. Most of the deals I have personally wholesaled I closed on them first then resold.  for some odd reason the last number of properties I have contracted had Title issues that took months to clear. When it is not certain that a person can get clear title why would I want to line up a bunch of buyers for that property? 

    9Reply
  • Philip Gephardt
    Investor Ā· Salt Lake City, UT Ā· Member since 2020 Ā· 10 posts Ā· 21 votes
    5y

    @Steve Morris Ah, Steve, the Nay-sayer in the group, thereā€™s always one. I own six properties (5 buy and hold investment props that all cashflow and 1 personal home). Of all these properties, Iā€™ve seen two in real life before purchasing.

    I did go a different route than our new wholesaler, and relied on agents that I vetted, contractors I vetted, inspectors I vetted, etc. I also ask for virtual tours from my buyers agents. Comparative market analysis wouldnā€™t change one iota whether Iā€™m in the market or not. I rely on my agents in various markets to provide me with the best info at their disposal, get a team around you, and get to work.

    My process for flips goes: 1) find an agent (this is the most important) 2) find a portfolio lender 3) find a contractor 4) find an inspector.

    Iā€™m not a real estate expert, these people are, and they also know the area.

    A good real estate agent can say, ā€œthat property is on the wrong side of the trackā€, or ā€œmy comps show that wonā€™t sell for what you wantā€

    Finally, you make an offer on a property that your agent has conducted a video walk through on, and run comps. You put an inspection contingency.

    2) Inspect the property ASAP!!!!

    3) share the inspection with your GC, and get his estimate to fix up.

    4) run the numbers again

    5) bank will send out the appraiser. This is my favorite part. Banks are in the business of lending to "sure things". They will look at your numbers, and see if you nailed it, or they will say, "the ARV appraisal is far lower than your numbers indicate".

    This is different than wholesaling, but I have done this with properties for a decade and donā€™t see why, if you do your homework, a similar system couldnā€™t work for wholesaling (which is admittedly something I know little about).

    12Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor Ā· Sioux Falls, SD Ā· Member since 2015 Ā· 9k+ posts Ā· 18k+ votes
    5y

    Every virtual deal I have seen done in my area is a crap house that isn't worth the wholesale price. The wholesaler puts some ridiculous after repair value on the deal. Best chance you have of selling is someone out of state who also doesn't know the area. I understand in NYC that a crap hole is worth a ton, but not in Mississippi - it is the poorest state in the country. No doubt, local investors know the market and can make money. 

    10Reply
  • Steve Morris
    Real Estate Broker Ā· Portland, OR Ā· Member since 2019 Ā· 4k+ posts Ā· 2k+ votes
    5y
    Originally posted by @Philip Gephardt:

    @Steve Morris Ah, Steve, the Nay-sayer in the group, thereā€™s always one. I own six properties (5 buy and hold investment props that all cashflow and 1 personal home). Of all these properties, Iā€™ve seen two in real life before purchasing.

    Slight difference, he's a wholesaler:

    1) Has no clue of the mystery true buyer will give him a fat check or not beyond his own say-so.

    2) Has $0 dollars tied in escrow so no loyalty to the deal, which I think is immoral to make the seller take all the risk in reliance

    3) Thinks he's screwing over the seller at a low price. I only asked how does he know what "low" means in Kiln, MS?

    4) You take title, so I'd call you an investor. He has no intention of taking title, so he is not an investor.


    4Reply
  • Zapata Tate
    Charlotte, NC Ā· Member since 2019 Ā· 21 posts Ā· 33 votes
    5y

    @Luis Serrano is right. You must have a cash buyer. 

    1Reply
  • Nick C.
    Investor Ā· Tampa, FL Ā· Member since 2011 Ā· 2k+ posts Ā· 3k+ votes
    5y

    Instead of seeking investors why not seek a lender and close on the deal. A lot less stress that way, and if it has a nice spread you should have no trouble listing it on the local MLS with an agent and getting top dollar.

    7Reply
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