All Forum Posts by: Allen Felker

Keep it simple. There are legitimate transactional lender already out there just google it, there a few I'd shy away from due to lack of professionalism, but there's a few that are easy to Work with. I can't give any specific names on BP, so yeah..

The criteria is unique, it's all based on your end buyer being lined up and ready to close, so I'd suggest building a buyers list first, or get in contact with agents who work with cash buyers. 

Save yourself time and money, understand how to properly value a deal (which includes assessing the risk as well), keep it simple in the beginning. 

I believe the 100 wholesale deals came from him partnering with people who joined his coaching program. the results are real but the details are skewed, IMHO. 

Tom is a great guy from what I can tell, he just doesn't give all the details, not to be deceitful but in order to motivate people. 

You can wholesale and close a bunch of deals and make money, but all the "just go out and do it BS is the reason people get into the business and then quit, they aren't properly prepared for the realities of running a business, wholesaling can be very profitable, you CAN make a ton of money in a short amount of tkme (6-12 months) but that only comes after about a year of education and a few months of failure. 

For a contract to be valid your need intent and ability to buy. 

Intent: When you get a property under contract begin trying to raise capital for the purchase I.e crowd funding sites, cash buyers etc. That way you have the "intent to buy" if you raise tbe money or find a buyer to JV with great, if not, assign the contract if that's legal in your state.

Ability to buy: Get in contact with a professional Transactional lender, make sure they're the real deal and not some scam company. If they agree to work with you you now have the ability to purchase because you're working with someone who will provided the capital if criteria is met. 

You should always practice full disclosure, let the seller know that you work with other investors and sometines you'll assign the contract just to simply things. 

Don't try to hide the fact you're making a profit, set expectations up front. Dont lie, don't give the the "I buy for cash" BS. Your job is to be a consultant basically, work with sellers to solve their issues, be upfront, etc. 

Too many people are coming into this business misinformed, wholesaling is BUYING LOW AND SELLING LOW. 

The first step is building a buyers list, once you do that and bring them a deal or two you'll have a lot more flexibility when it comes to closing. 

As a wholesaler your value proposition to your customers (cash buyers) is that you find discounted OFF MARKET properties. Any buyer can go on the MLS and see the same property, if it's not listed yet if an agent is involved it will be.

I try to avoid working with sellers agents, the correlation between sales price and the agents commission does not work in your favor at all. 

Most off market sellers will not ask for a proof of funds letter, if they do they're questioning your ability to perform and this can be due to the way you presented yourself. 

You can get a POF letter online, and speak with a Transactional lender.
 

 As a wholesaler I wouldn't suggest dealing with anyone who has an agent involved, 9 times out of 10 they'll screw up the deal, most agents don't understand real estate investing and you'll end up disappointed.

Direct that time and effort to private sellers. 

Example: if you have it locked up for $100,000 then you'd market it for say $110,000 ($100,000 10,000 assignment fee). 

Wholesaling is just buying low and selling low. There is nothing illegal about that at all. 

I'm guessing what your really want to know is if "assigning contracts is illegal", in some states it us, but in most states its not. If you can't assign a deal find a transactional lender and double close. 

Once again, wholesaling is just BUYING LOW and SELLING LOW, no legal issues with that, people get skeptical with assignments sometimes because the big dogs don't want the little dogs to come up from it, there's ways around it. 

Also, if you're making less than 15 grand I'd just assign it, why hide the fact that youre making money? If they get mad at you making a fee they probably aren't THAT motivated, whe  you speak to a TRULY motivated seller 9 times out 10 they don't care about an assignment, if they do just use a transactional lender (if the numbers make sense) and double close, simple. 

...you can assign a contract unless it says you can't, certain states dont allow it, MOST do. 

You should always be upfront with your sellers and let them know you work with other investors, and assigning the contract to them is just a  way to simplify the process. 

A lot of people will tell you what you "can't" or "shouldn't" do but in reality as long as you disclose to the seller you plan on selling or assigning the deal to a partner you should be okay. 

The thing is you have to have the intent to buy and ability to purchase for a contract to be valid. A transactional lender can solve the ability to perform issue if you don't have the cash personally. Once you get a transactional lender on your team (which is EASY) it's easier to avoid all the BS.

My suggestion also is to begin raising money for the deal as soon as you put it under contract, that takes care of the intent issue. 

Land is hard to wholesale, it takes a lot longer, it's not impossible but it's more difficult to find buyers. 

To be honest, I'd stick to the typical single family homes, FOCUS WILL MAKE YOU RICH. 

Negotiation is a mental/verbal sport, that's the best part for me. When you take a collaborative, problem solving approach as opposed to a  adversarial (me vs you, haggling back and forth) that seems to surprise sellers.