All Forum Posts by: Adam K.

If I have a seller with a "real" deal that could be wholesaled I will either buy it for myself or list it. If the Realtor is an investor or been around long enough there is nothing a wholesaler could offer them if the Realtor has the lead. Now if the wholesaler has a deal the Realtor has lots to offer but they have to be flexible on cutting their commision. Being creative on how to market on the MLS and handling buyers agents is key. Wholesaling knowledge and experience on the Realtors part is a must for the deal to close legally with everyone being happy.

Before I had a license I sold a rental with the lease and tenant on Zillow in less than a day. Good pictures, good pricing and answering the telephone is what sold it.

If a buyer wants to move in early or the seller stays late that's fine but everyone has to agree and somebody has to pay. Use the forms provided by the state or write it specifically in the contract what is supposed to happen and what happens next if it doesn't. Real estate is a business not a charity. The agent works for your brother, if the agent is not doing what he asks then he needs to get a new one. Agents like to do what "they" cusotmarily do because it is easy. Good luck trying to customarily evict someone.

Do you now hold the title of “Real Estate Wholesaler” with a website, google voice number, street signs on every intersection and mailing out 1000 cards a week? Do you have a wholesale deal you have been sitting on for more than 3 days and just can’t move it? If you've had it for 3 weeks then it probably isn't a deal at all or you’re not connecting with real buyers. Are you receiving marketing responses from sellers but can’t lock up the assignment? Your process is not necessarily wrong but your numbers might be. I received five emails today already from wholesalers trying to sell rehabs at market price with unrealistic ARVs, impossible rents, and ridiculous rehabs. It's not their fault; they are just missing accurate information.

When I see these emails with bad numbers that are not deals I first feel sorry for the seller who signed the contract, next the investor who buys it and then maybe the wholesaler. I say maybe because if the wholesaler can’t move the property because they want an outrageous assignment fee then they are being greedy and it’s their own fault. Besides the obvious of the wholesaler not making any money the motivated or distressed seller is having their time wasted. If it is a distressed homeowner then their problems, stress, and misery is only be dragged out while the wholesaler tries to figure it out. No fault for trying but the real goal is to solve the homeowner’s problem and that usually means it needed to be solved last week.

Have you found a motivated seller and not sure exactly how to proceed? Maybe the seller doesn't feel comfortable signing contracts to sell their house to someone that does not have a real estate license, who has no experience, read some internet forums for 2 years in their free time, stuck some signs on the side of the road, and talks about mysterious cash investors they know who can close tomorrow. It happens every day. There are plenty of success stories and I’m not saying wholesaling is bad or you shouldn’t try but just think how the whole story sounds to them.

Not all real estate agents make their living on commissions and the minimum brokers fee can be less than most people's bar tabs. In Texas the commission paid to a buyers agents is a "customary/recommendation" not a requirement. Those 2 numbers can equal $100 or $100,000 depending on the agents or agent you work with. Finding a creative investor who happens to hold a real estate license can be a very valuable asset. Just by having the licensee on your team you can put the seller at ease, get precise sales data reports, and leverage the MLS to populate hundreds of other sites nationwide. Blast emails, yellow cards, websites, business suits and LLC's can cost as a million dollars but they don't make you the wholesaler a Professional.

I am not a lawyer but I do know the legal costs attached to real estate can put you out of business before you even start if you don’t know what you’re doing. Or worse yet, cost somebody their home. Every state, county and city is different when it comes to real estate law so don’t bank on internet forums even if it was a lawyer that posted the information. Knowing the laws for your area is a requirement if you want to call yourself a Professional.

Professionalism is the way you conduct your business, not a license or certification ( and not all licensed real estate agents are Professionals).  Be a Professional wholesaler and put the seller’s interest first by fixing their problem the best way you can. Being a Professional is someone who uses accurate information, is realistic with expectations, and is honest about their experience and motivation. If a Professional is in over their head they inform the client, terminate the contract and direct the seller to someone who can get the deal done. If you do that for them then your reward will come. If you’re sitting on a wholesale deal that doesn't get any bites or you’re about to lock up your first assignment contract strive to be a Professional and don’t be afraid of the Professional real estate agent.

I joined with Champions about a year ago. I started as an investor and did 7 transactions on my own before getting licensed. As stated above if you can handle all of your own deals, market, and learn the transaction management software then its great. I have not reached out for any support from them so I cant comment but other than that its great. The commission savings on 3 of my own transactions so far is the 5 digit range. As long as you do what is required for the transaction the commission checks get deposited at closing. They have a print shop in house for cards, signs, etc with fast turnarounds and priced the same or better than online.

Do you have the listing or looking for buyers to represent?

I just posted a turnkey with tenants. 

I have mentioned this in other posts.

No showings until a completed application is received and I have made a few phone calls. . I get responses from applicants that act as if they are insulted and ask why they have to submit an application before even seeing the property. I tell them the same thing everytime

" I have to make sure your qualified to rent the property.....    ...... Ok great, fill out the application and if everything is good we can possibly see it tomorrow.......... "

And they never send the application back, I just screened them with a phone call or email.

I am not aware of the law that states you must show a property to every person that requests it.

 Its not feasible to run out and show the property to every person that clicked on the listing who may be just looking, still a few months out, looking for someone else, etc.

That should have disqualified them right there if they don't provide all required documents.

 I send out "Tenant Screening Criteria" with all applications so it has been disclosed upfront what they need to do, provide and what disqualifies them. They must sign and return the criteria with the application. Usually they sign it and don't read it and neither do their agents but either way you can deny them for there.

Here is a few lines from my TSC form, (not in order)

- Applicant(s) shall be disapproved if we are unable to verify income, rental, credit, or criminal history. False, incomplete, or misleading statements or omissions on the application(s) will result in disapproval of the rental applications(s).

- A decision on an application may be delayed due to delays in the verification process. This could result in the home being offered to another applicant who submitted their application later but the information was readily verifiable, which concluded in being able to make a decision of approval or disapproval and offer of home prior to another earlier dated rental application.

- Any information listed on the application that is not provided, left out, incomplete found to be false or intentionally misleading will result in the application being denied.

- You declare that you have read and understand the information in this RESIDENT SELECTION CRITERIA document. You acknowledge that by signing this document if your application is denied due to items, situations or circumstances listed in this document that your application fee will not be returned.

 You shouldn't be working this hard on an applicant for them to follow the simple directions of your process , dump them. The right one will come along with everything in line, filled out and ready to go. If this is your only application then re-evaluate your pricing and product to find out why.

If the rent comps are $900-$1300 why are you projecting getting $1800 in rent? 

Base your projections in the lower end of the rent scale and see if it still gets a return you are happy with.