All Forum Posts by: Justin Fernandez

Hey guys and welcome aboard. Like any other company, it's been done before. There are McDonald's and burger kings out there, but you still see mom and pop burger shacks, right?

How long they stay is ultimately up to them. What differentiates them, what makes people go to their burger shop and not others? What makes them successful?

This concept can be applied to wholesaling. How do you plmake money in this game? Let me tell you from experience from someone who still lives paycheck to paycheck, wholesaling costs money. You can leave that thought out right now. I feel every dollar I spend. 

There is a reward waiting at the end of the road(that's the hope at least), but wholesaling is another job. It takes startup capital and the biggest one of them all is time. How are you going to generate leads, qualify, contract, and then find buyers, qualify them, and then find the next deal? You have to work both sides of the transaction meaning double variables. 

If you're afraid that it can't be done, then it won't be. 

You may have knowledge in what to do, but how will you do it? 

You say you don't have capital and that's the issue, I say you don't have heart, at least not yet. But you'll have to figure out why you're pulling the trigger, then how you're going to do it. 

Wholesaling is easily said the hardest thing to do right in the RE world. 

You have to learn it all from the seller's and the buyer's perspective, not just bits and pieces. It's a thinking person's game. Don't forget you're the most expendable one in the equation, why? You don't have money in the deal, you don't have authority in the deal, but you have to control it all. 

You can't do something you're finicky about. Even more so in the RE world and you're lowest on the totem pole and you want to do the hardest thing. On average, successful wholesalers end up wholesaling after being a rehabber, landlord, RE agent but rarely do they start as one. 

Don't get discouraged by this, I didn't when someone told me this and continues to tell me this. (Search bigger pockets on wholesaling and see what comes up every time). You can be successful you just have to get your heart right and mind ready first. 

Is probate, heirs of deceased only? I thought there were different types. 

It's priced a bit low for the income generated since it's at 6 units. 

Also looks like your paying utilities too. 

How long are leases in place?

Separate meters or chargebacks usual in the area?

It's sitting at a 5ish GRM, 9.7 cap (assuming 50% expenses)

What's the area like?

Are the rents at market?

Average Vacancy rates for your area?

Good to know. Thanks @Michael Kevorkian

What kind of probate leads are you pursuing?

What type of lead was it?

Think about it like this. 

In terms of an ivestment utilize all rooms, since you are technically renting from yourself.

In terms of personal balance sheet do the other units cover your living expense and then utilities? That's househacking a multi.

Post some details and we can be more clearer on the subject. 

You both should talk to RE lawyers in each state as I am not one, although I did stay at a Holiday Inn.

Depending on spread you have and what the other guy may or may not be comfortable with determine how you're going to close. Either Assign or double close/simultaneous (The slash is for Will)

Keep your contracts simple (1-2 pages). 

It should include the Address of the property, the legal name for said party.

All parties involved, your business/name and sellers(all on title need to be here)

It should include purchase price

EMD and how much (when is it soft, and when does it goes hard)

Property Condition

Pro-rations of taxes

who's paying for closing

your clauses, Keep your weasel clauses simple (1-2 contingencies(Clear Title and Inspection).

Any state specific necessities 

Signatures and effective date

But as I stated before, your lawyer can and should provide one.

If you don't have the money for it or a contract, ask the investor you're locking up for.

@Account Closed 2 contracts. 2 Closings.

Quick question to both, how did you find them and are you doing a value add by getting a discount? Or are they simple markups to an end buyer?

Oh my the tire kickers. What can one say about them, I'm still new and already tired of them. 

You just have to set yourself up for success. 

Have them provide verifiable proof of funds (someone you can call and speak with, but rememeber to fudge the number and make the person on the other line say the correct number.)

Have them drive by the property first. 

That should weed out about 75%

If they want to lock up the property then require a Nonrefundable deposit. 2-5K works but you can always percent out a portion of your assignment. 

If there's kickback let it sit with your closing company, still kickback? Well you just found a well qualified tire kicker. 

You can risk it if you want, but you'll more than likely be better off double closing. If they ball at 2K, then your fee is next. 

When you mass market, it's a numbers game. 

Hope this helps

Trader terms!

@Steve Vaughan

But Steve is spot on as usual

Just make sure to account for the cost of eviction in your pricing to the end buyer or as long as deal can bear it. 

My first contract had an eviction tenant. Lovely lady, terrible boyfriend, bad financial habits. The eviction went by pretty fast, but the seller was familiar with the process. 

Just find a serious buyer that has landlord experience and can deal with it. Make sure to put in enough protection to keep tire kickers out. 

It really just depends. You can get on wholesalers list all day. There is no worthy, or not worthy. It just becomes a priority of who they shop their deals to. You'll be fine as long as you're honest about your intentions. Good wholesalers send their properties to their golden 5. If they don't buy, then it hits their spread list. Any wholesaler who's been interviewed on BP podcasts, it's their thing. Why break something that works? 

So be different!

Train new wholesalers to look for your next deal. Read about Ryan Webbers strategies, J Scott does this too. If you train every new guy what to look for, who do you think they're going to bring it to. You're not ready to take on another deal, that's ok send it to a friend or connect the wholesaler. 9/10 that guy is gonna go to you again first, why? Because you gave that person a chance when others just laugh. 

Just food for thought.