All Forum Posts by: Braden C.

FRANK DARIENZO I see that you're in Spring Hill, this is a great market in Florida. I had a $25k wholesale flip in Spring Hill earlier this year. If it wasn't so far away from me, I would be very active there.

Seeing as that you have a very small budget, I wouldn't be expecting to see very good results. Wholesaling is often sold as the poor mans way to get into real estate but the reality is that it takes a lot of planning and work. My average cost per acquiring a deal is $817 in marketing dollars. You can certainly make it work but it will probably take quite a bit of time so be prepared to be patient.

If you can't afford to send letters to potential sellers then I would suggest bandit signs, driving for dollars, for rent ads on craigslist/classifieds, car magnets, and word of mouth. I am sure there are additional ways to find deals but these are what work best for me.

Don't ruin your reputation with the buyers you have. Once you do have a deal, make sure it's an actual deal. Don't get desperate and try and make something into a deal that really isn't one. Experienced buyers know the difference and they'll write you off very quickly if you aren't sending them the right stuff.

Let me know if you have any other questions and good luck!

Paul Zajic Jerry gave you the best advice and as a full time wholesaler, I can say that with confidence. TRUE wholesale deals will easily sell. I've done a number of deals in areas of my state that I had zero buyers in. The deals were all so good that I easily sold them.

Get working on finding deals and start marketing to buyers in your spare time.

You should have some additional things in place before you start marketing to sellers or buyers. This includes contracts, assignment agreements, a title company, and the resources you'll need when pricing properties ie. running comps, repair estimates, ect.

Good luck!

Ricky Lee Most new wholesalers fail because they lack a business plan and sufficient capital. The site that you gave for your example has a headline of "Make $5,000 in 30 days", this is the typical misleading garbage that is out there. No single person, coach, mentor, or whatever you want to call them can do that for each and every person they deal with, so they shouldn't make that claim. While those results are possible, they aren't typical.

I've coached very successful entrepreneurs who took several months to put a deal together. If you're looking for a get rich quick business, I promise you that wholesaling isn't it.

Because you only have $700 to your name, I would suggest you spend a lot of time reading through the posts here on BP. Then develop a business plan for your financial circumstances to get started. It is possible to make a lot of money wholesaling but lack of planning and education is where a lot of folks fail.

Are you also checking to see if the current owner has a mortgage on the property? It's more than likely that they have abandoned the house because they're letting it get foreclosed on.

I’ve been very fortunate to have done several hundred wholesale deals that have gone very smoothly. It’s not uncommon for issues to come up in a deal but I can almost always find a solution. This is one of the few times that there was simply nothing I could do to save the deal.

The story… I received a late night phone call on a Wednesday and let it go to voicemail. The next morning I checked the message and it was from a lady who said she had received my letter and would like to sell her house right away. I called her back and we briefly discussed the house and why she wanted to sell. It was an inherited property that she had owned for over 10 years, the previous tenant had recently moved out and she didn’t want to be a landlord any longer. I asked for her permission to enter the house to get an idea of the condition. It was very close to being a tear down and needed a lot of work. I called her while I was still at the house and asked if I could meet with her to discuss my offer. I met her at her apartment; she was probably in her late 70’s but seemed very organized. Because she was elderly I made sure to go over the contract line by line, just to make sure that she understood everything. We talked for over an hour not only about real estate but about her life, her kids, stories about growing up in the area, ect.

Once we agreed on a price and had gone over the contract I left and called one of my landlord buyers to give him the details. He called me back later that day after seeing the house and said he would take it at my asking price which was a $6,000 profit for me. After I received the assignment agreement back from my buyer I sent everything to my title company so we could close by the following Friday. On Monday the title company called to let me know the title work came back clean and they were preparing the closing docs for Friday.

Tuesday is when the deal fell apart. I received a call from a woman who said she had found my business card and a copy of a real estate contract on her mother’s kitchen table the day before. She told me that her mother suffered from severe Alzheimer’s and had signed a contract with a different buyer two weeks before. I couldn’t believe what I was hearing; I had sat with this woman for over an hour and never had even the slightest impression that something was wrong. I very politely asked the daughter to send me a copy of the contract with the other buyer. I have dealt with dishonest children on deals in the past who were simply waiting for their parents to die so that they could inherit the house. A couple hours later I received a copy of the contract via email. It took me less than a minute to decide to just let this one go. Sure, the daughter might have been lying to me. Another buyer could have come along over the weekend and agreed to write an earlier date on the contract. My gut told me that I was being played, but I didn’t want my gut to be wrong. If everything was true, the last thing that family deserved was to have to deal with a real estate investor who wanted to fight over a crappy old house.

Any other wholesalers ever have something like this happen to them? What was the outcome?

Javon Rice Since you say it's "supposedly" worth $40k, I would confirm this first by getting some solid comps. I would also ask the seller if you can take some boards down so that you can get inside to assess the repairs required. Just make sure to put them back up when you're done.

As far as the price, what the seller wants and what the seller will take are two different things.

Kelly McE Most state contracts should have a section regarding whether or not the contract can be assigned. In Florida there is an entire section that covers this and you can check a box either allowing or not allowing the contract to be assignable.

Almost all banks will generate their own addendum to the contract. I've never seen a bank addendum that didn't prohibit assigning the contract. So even if your original contract was assignable, the banks addendum will supersede certain terms of the original contract and the ability to assign will more than likely be one of them.

You can still wholesale the property by doing a single source funded double close. You'll simply have a contract between yourself and the buyer you find. You'll want to add in the following language on the resell contract "This agreement is contingent upon YOUR COMPANY successfully purchasing the property". This will protect you just in case something happens on the front end of the deal and you can't perform on the back end.

Let me know if you have any other questions.

Christopher Devalle There are a lot of different ways to get involved with RE. You need to pick one that best fits your current situation and abilities. The beauty is that you can transition from one area to the next as you progress.

The question is, what are you feeling drawn to?

Don't walk...run!

Ruben Valladolid Jr. IMHO it's going to be very hard to find a wholesale mentor/coach in your own backyard. I get a lot of "coffee requests" as well from people in my area, and I always politely decline. The reason why is because I don't want to create my own competition. Finding TRUE wholesale deals is hard enough and sharing my secrets with someone in my area will only cost me deals in the future. I am focused on a long term goal so while it might be nice to split a few deals with someone in my area at first, the long term affect would be quite negative.

I would HIGHLY recommend finding a local mentor to help you with running a business. Most wholesalers fail because they lack an actual business plan. Having someone who can teach you how to properly run a business will not only help you with wholesaling but also help with any ventures that wholesaling leads you to.