All Forum Posts by: Dedrick Williams

I believe the key to wholesaling is using it as a tool to do something greater. Just don’t stay being a wholesaler because it’s not sustainable in the long run.

Use it as a way get properties you will keep for cash flow just like agents use there commission as a down payment on a property. Use it to save cash to put into a bigger more lucrative deal. Use it to pay for your RE license and create another source of income. Yes it is a way to get into REI when you have nothing but be smart about it.

Wholesaling is not as easy as people think it is especially when you are doing it alone. It’s a lot harder then been a agent which Is why I don’t understand RE agents giving wholesalers a hard time.
Yes wholesalers make a lot more on commissions then agents but it’s well deserved when you look at everything it takes to get from a motivated seller to a end buyer closing.

And yes there are bad apples in wholesaling that are unethical and take advantage of sellers but there are some of the same type of people that are agents and in any other profession. 

 Most of the people that fail with wholesaling don’t use it for anything I said above. It’s a high paying 1099 job. It’s quick cash so they spend it as such and never creating a foundation for there future. 

Best put elsewhere like what?

You make a very good point. That is something to strive for once you do a few wholesale deals and reinvest into yourself if you don't have the resources to go that route from the beginning.

You can do this one of two ways. Either you can make it the tenants responsibility to upkeep the lawn or whatever you currently pay to have someone else mow it add that service fee to there monthly rent. That way it will be one less responsibility for you and one less expense. If the tenant decides to take the responsibility of the lawn and the grass dies deduct it from there deposit when they move out.

@Barbara Gordon Your MAO is really dependent on what you want to do with the property and its current condition. On a flip I normally do 70% of ARV minus repairs on a house that's in rough condition. In your repair budget always add a 20-25% buffer. There is always things that come up especially on older houses. If I come across a home that is in pretty good condition and only needs some minor cosmetic work (repairs under 15K) I'll offer 80-85% of ARV minus repairs. These are good buy and hold properties as long as you can get that .9-1% of your total investment (cost of property plus repairs) in rent per month.

@Anessa Salinas First analyze all the different avenues of RE and focus on one that best suits you and your husbands personality and strengths. I am just like you. Just getting into RE with no money. I’ve been a automotive technician for 11 years so I have a high mechanical aptitude. So in a week or so I will be working with a local contractor learning how to rehab a house and how much it costs to do different jobs within the house. When you don’t have capital you have to have value you can bring to someone that does have capital. Learning this will help me in to ways. First it’s something I need to learn anyway so I can generate accurate rehab costs on my projects which will prevent me from getting screwed over by other contractors in the future when I don’t have time to rehab my own houses and secondly I can partner with another investor that has cash and we can split the profits. This will help me raise capital. Just do what works for you and go for it.

Good Luck

Thanks

Thanks

     I agree thanks for the input