Boston, MA · Member since 2012 · 52 posts · 9 votes
Hello BP,
The number of wholesale deals I've been doing has been increasing over the past few months (took a long time). I found a 6-unit apartment building I think one of my buyers will like. For those of you who wholesaled apartment buildings before, how did you get access to the property to show your buyer without having the listing agent/seller there? Thanks for the help in advance
@Avery: When I first started wholesaling properties, I seached our counties records and sent letters to buy properties to the executor of estates, I searched the paper for people who was getting married or divorce to see if they owned property and wanted to sale, I sent advertisment to out of state investors that was buying properties in my city to see if they were interested in selling or buying more properties, I stopped by other investors job sites to see if they were interested in selling while the property was in construction, and the list goes on and on until now. I don't do any of those things anymore because of the relationships I have built. Bottom line is that it takes a combination of many different techniques that will eventually bring forth a deal. They don't always pay off quickly, but with persistence it will pay off. What will happen is that the market place will begun to know who you are and what your doing. These very people will become the network you'll need to find and locate even more off market properties. The same investors that I sell too also call me about deals that they have coming up. The biggest boost in my wholesaling career came from properties that I manage for my investors. I always have a client looking to sale one of their properties, or looking to buy more income properties. This gives me the opportunity to sale my clients properties to other investors without listing it on the MLS. I hope this helps!
The key is for the property to be an off-market property. The only other way is if the units are vacant and the agent is willing to give you the code to the lock box (unless its a century). If the agent is investor friendly, I would explain the situation and ask if he/she could give me and my business partner showing privacy (open the unit before we get there and wait in the car until we leave, then lock up).
I agree with you James Martin. I was able to wholesale a 24-unit apartment building (call it Building B). I got from a seller from whom bought another building from (call it Building A). Building A was listed but Building B was not.
To make the long story short, we put Building B under a land contract for $1 down and we take over the mortgage payment. We then flip that contract for a $20K profit and had our buyer take over the mortgage payments.
So, the lesson here is get in touch with the seller if you can (even for buildings that are listed). Ask them if they have other buildings (not listed in the MLS).
@Avery: When I first started wholesaling properties, I seached our counties records and sent letters to buy properties to the executor of estates, I searched the paper for people who was getting married or divorce to see if they owned property and wanted to sale, I sent advertisment to out of state investors that was buying properties in my city to see if they were interested in selling or buying more properties, I stopped by other investors job sites to see if they were interested in selling while the property was in construction, and the list goes on and on until now. I don't do any of those things anymore because of the relationships I have built. Bottom line is that it takes a combination of many different techniques that will eventually bring forth a deal. They don't always pay off quickly, but with persistence it will pay off. What will happen is that the market place will begun to know who you are and what your doing. These very people will become the network you'll need to find and locate even more off market properties. The same investors that I sell too also call me about deals that they have coming up. The biggest boost in my wholesaling career came from properties that I manage for my investors. I always have a client looking to sale one of their properties, or looking to buy more income properties. This gives me the opportunity to sale my clients properties to other investors without listing it on the MLS. I hope this helps!
Just another perceived negative comment for beginning investors, I'm sure.
Before anyone gets ideas, you can NOT assign a contract for deed without the seller's approval. You can NOT assign any installment purchase agreement that includes any type of financing arrangement. Just as you can NOT assign the seller's loan to your buyer. :)
Isn't it true Bill that any contract can be assigned unless it specifically states that it is not assignable. That has been my experience and understanding. If I'm wrong, can you please clarify. excluding a loan agreement and really we do that with SUB-2.
I think what he means is that you can't simply assign the loan to someone else, thereby removing the financial obligation from the original lendee. That's why you create a contract that states your intent to continue to pay the mortgage for the seller.
@James Martin Hey James, in your comment above about all the techniques you used to get leads; was there a particularity technique that generated the most deals? If you knew what you know now, would has focused on a certain technique to get the most deals?
in my purchase agreement it says "BUYER has right to access PROPERTY to show potential assignees and/or their agents". so i explain to people that i'm looking to flip this property. so if it close enough for me to drive and show the property, i get the keys and show it. if there are tenants i call tenatns and give them notice. if the proprety is far away for me to show it, i would tell the owner or one of the brokers what i'm planning on doing with the proerpty. that i would be sending them people that want to purchase the property from me. i would also expalain that if they won't show the property then this won't work. i think most brokers would be happy showing a property if you are sending them people that want to buy from you.
some dumb brokers are greedy and have an issue with this. i bought a mobile home park here locally. in the contract between me and the seller it said i have right to access property to prospective assignees. after i looked at the property [i don't look at properties without having a purchase agreement already signed], i told the broker ok so you can give me the keys like we agreed with the seller, or i would rather just connect you with people that want to buy from me, and you can arrange a showing. he was ok with him arranging the showing. so i sent him a few people that wanted to look at it. he calls me and says we have a problem becuase of conflict of interest. since he is representing the person that sole me the property. the property is listed. he was jsut being greedy and i think dumb. the hard part is finding someone that wants to see and possibly buy a property. showing the property is the easy part.
Patrick Henderson, no you can not assign a purchase agreement or an option to purchase unless the purchase agreement says you can. if it does then the seller agreed to give you the right to assign the contract so therefore you would be good. if the seller never agreed to give you the right to assign your rights as buyer, then you can not assign.
most sellers just need a quick explanation that look the terms of the contract would be teh same the only thing that would be different is that the buyer would not be me but someone else.
HI all I am a R.E.I getting things going as a wholesaler I need some help from someone who is much more experienced I have just found a motivated seller and I have a someone who is looking to buy the commercial property.
I really want to help this guy out as it would be a great opportunity for him as it would expand his business as the shop it much more bigger so that he can provide for his family better. The frustrating this is that I have the three types of forms but am not sure what need to be enclosed to make thing extremely transparent to avoid any confusion.
Read it. Bilateral and unilateral contracts, any financing contract is a unilateral contract and it may NOT be assigned without consent of the party owed.
A real estate sale contract is a bilateral agreement, it can be assigned under certain circumstances, such as having a valid contract where the buyer has the intent and ability to perform. If you're a wholesaler, that's probably not you as the buyer. :)
hey I am going to go down on Saturday and look at a commercial industrial property the realtor / owner wants 2 mill this is my first wholesale deal I could really Use some serious advice if anybody might be able to help me out of greatly appreciate it