All Forum Posts by: Account Closed

I've been wholesaling for a little bit now and from time to time I run into deals where a creative solution is not only viable for the seller but viable for the investor as well. Well, to cut the story short, I found a beautiful 3/2 that's been being used as a rental. I'm in Indiana but I wholesale in San Antonio only, and I intend to move there very soon. 

The seller doesn't "need" a sub-to buyer, but after explaining to him the benefits to him and me he wants to. I have the reserves to sit in this thing for over a year + all of my expenses as a human, but I want to move into one room and rent the others out for ~$500/month as they do in it's market. 

So, I'm 17 which made contracts a little funky for me, starting out. I do everything within my LLC and I have an "officer" of my LLC who owns 0% of it but has the authority to sign documents whenever I appoint him to, and only until I'm 18 (this coming January).

That's how I've been wholesaling, I just do every other aspect of it and he docusigns it for me. Would I be able buy this property subject-to legally using this method? 

If it is any you are going to warn me to make sure I have reserves, wait until I have reserves, more consistent income, etc, I am currently doing 3/4 transactions a month and I am more than confident that I will further ramp this up. Another aspect is that the monthly PITI is lower than what both other rooms would rent out for, so it's kind of a steal! My plan would be to do this for a couple years and either I'd find another creative finance deal to buy for myself and rent the 3/2 out normally and after 2/3 years of credit to refinance the property and get it on my own loan. (At the projected interest rates of Q4 2023 released by Fannie Mae, it should still cashflow a few hundred bucks even after capex and vacancy)

I don't want to ask my title company, because I don't know how they would respond. If I can't, it'll be okay, if I absolutely need to wait then I would try to see if the seller would be up for a master-lease option with a hybrid of subject to, but he does seem like the type of guy who would. If I can't do that I would be able to get a partner (who is of age) to get an option on the property and wholesale it to me once I'm 18. 

If I can't do that, or if there's a better way to do it, please let me know, how, and why. I greatly appreciate any and all feedback.

Multi-family is priced differently and is based off of it's income. Comps can be helpful, but I would calculate the NOI of the property that you're comping. We're serving the buyer, so we want them to have a safe and sound investment.

Comp it, look at the cashflow, look at the typical cash on cash return in the market that the property is located in, and beat it. Provide your investor with right around that cash on cash return, preferably a little higher, and you've got yourself a closed deal. 

Tip: Get to know some multi-family owners in the market and learn from them on how to comp rents. If they're seasoned investors, they will most likely be able to tell you upfront what a unit will rent out for if they have all of the details on the spot. 

 Oh, do explain? I'm interested, how would you go about doing this? 

Then you hit me up too!!!!  

Here's the DEFINITIVE answer of whether you should STILL be wholesaling in 2021: 

Wholesalers have grown by the masses due to influencers showing "how easy it is to make $10,000 by doing nothing!" Or whatever they title their clickbait trash. This has made it much more competitive, however, most people suck. Most people don't even find a deal. I promise you the majority of the deals are still going to the same people who were getting deals over 10 years ago, if not they're doing even more. 

All you have to do to get a wholesale deal is to solve the seller's problem before anyone else does. This means putting in TIME and EFFORT finding these potential deals as soon as they come up, going all the way from calling, to texting, to mailing these people, or present yourself as the better "we buy homes" guy to go to. 

If you want easy money, stay the hell away from wholesaling. If you want a lot of money but want to work all day long, do it. But, from personal experience, whenever you do find those sellers who are interested in selling to you, it creates this primal feeling like you just scored the hunt. It's amazing. It's what keeps me cold calling 4+ hours a day on top of highschool, while having 2 people still calling for me. To me it's lost it's "work" feeling. I love it, I love analyzing deals, reaching out to investors and motivated sellers, and coming up with creative ways to destroy the competition. Get to the point where you know the process, and you'll love it too. 

Learn everything you can about the property, first. Even before you talk to the seller if you can. Learn what it's worth fully fixed up, learn what needs repaired and how much it will cost. Those are all of the variables you need to setup and offer, and from there make sure that you can submit an offer that allows you to assign it to an investor at a desirable fee, while they can make a large profit. They won't buy it if there's hardly any money in it for them. 

Tip: Take your repair estimate, multiply it by 1.2. Take the average ARV of the surround comps, and assume the lower. This creates a net of safety so that either your calculations are more likely to be correct, or they're wrong - in a positive way.

Hi, I have two cold callers who call for me. I use Pipedrive, and they are connected, and that is linked to JustCall, which I have member spots for them. I found mine on Upwork, it's great because you can see their experience, what they like doing, and how well they performed by previous ratings. 

Here are some tips: 

Go for a person who's actually based in America. Sure, you can save $6/hr or whatever, but think about all of the people who receive spam calls about their social security or from the "IRS." They hear a foreign voice, they immediately register it as a scam. If that $6/hr costs you 1 $10,000 deal... you've lost money via opportunity costs. I offer my team members $10.00/hr but with commissions in place for deals they get, and 1% of my company's monthly profits. This keeps them able to cold call since they get their hourly pay, and it keeps them working with effort as they want that commission. 

Have a dialer where you can listen in on what they're saying, just to check in here and there and make sure they aren't scaring away your leads

Think about it like this: If your average deal is $5,000, and it takes 3000 calls (or ~32.5 hrs based on 30 seconds for every call that doesn't pick up and 9 second average for all of the ones (25%) that do) to find a deal, then cold calling is about $150/hr in value creation. Think about how much higher that hourly is when you're on the phone with actual motivated sellers, discussing their price range, repairs, etc. If 1/10 are a deal, and ~30 minutes/call, then that is about $1,000/hr. 

Here's where I'm trying to move: Have so many leads with organizational flow from my marketing avenues + cold calling that I can fill my entire day with work that pays me $1,000/hr instead of $150 like cold calling would. Then, after I hit that point I may hire a qualified person (like an investor/agent after extensive training) to be an acquisitionist, pay him/hr something like $50/hr, then hire more cold callers, up marketing, and hire a VA something like $5/deal to blast my deals to my buyers.

If you have your crm set up with your autodialer, you should be fine to begin your delegation as long as you have it properly setup. Good luck!

The only way to wholesale deals is by having good quality conversations with potential sellers, whether motivated off market or motivated on market. How do you find out if they're motivated? By talking to them! All the wholesaling field is about is talking to as many people as you can, pre-qualifying them making sure they're not just random people with a property but they may have a level of motivation, like liens, pre-foreclosure, or on market, etc. I would say start by calling listing agents of MLS deals on zillow and the property owners on For Sale By Owner properties. I would also advise that you google "propstream," and watch a video or two on it.

BUT, don't fall into the same pit that all of my friends or people I know who try to wholesale do, where you spend all of your time and money on softwares, little things like logos, and books trying to learn "everything," because that will get in the way of your career. Instead, look at all of that differently. The only way you will wholesale deals is by talking to many, many people, and software should be nothing more than a tool to either help you do that or to help you keep it organized. I started out with a pen and paper, but now that I have two cold callers, I had to upgrade to software (pipedrive) to help me stay clean. 

And about the books and YouTube videos, sure there is quite a lot to learn but I promise you that if you put yourself into these situations and problems, have a mentor or a relationship with someone knowledgeable who can help you out when those problems arise. I promise you that I learned 90-95% of everything I know about wholesaling by actually doing it, and having these problems and questions arise and solving them or having my mentor help me out. There's quite a lot to it, and there are little things that youtubers will glance over. 

Good luck!

Here's how I market my deals (And by the way, that's a really good idea about finding agents of the companies.): I advertise them in FB groups, craigslist, and I call my buyers list that I generated from relationships and cold calling. I use Mailchimp to send a huge blast email to all of my buyers every time I get a property, too. The thing is though, if you get a genuinely good deal then the deal will sell itself (of course, with your push on it.)