All Forum Posts by: Dev Horn

Yeah, in 2009 banks were "motivated sellers" and we were doing a lot of short sales.  In 2015, banks are getting market value and have very little motivation to deeply discount their REOs.

You really don't want houses AFTER foreclosure (that's the problem you've seen here).  You want to try to save the homeowner who is in pre-foreclosure.  And of those, you really only want to deal with sellers who have substantial equity.

Kent Clothier's "FindCashBuyersNow" service (FCBN) is pretty cool.  You can pull people who have purchased for cash (no lender lien) in the past six months, year, etc.  If you decide to use that service and have any questions, feel free to reach out to me for more info on how we use FCBN.

My only complaint about Kent's stuff is it is hard to figure out how to BUY the FCBN service.  Go to the site and they want to send you eBooks & DVDs.  DVDs??  All you want is the online FCBN service.  I have NO IDEA where you simply buy THAT, and honestly, I can't remember how we finally got to the right place to purchase just the online service.  So, be ready to deal with an info-marketing funnel from hell, but if you figure out how to buy that service, it can really work for finding REAL cash buyers.

Here we go again with another opportunity for the "wholesaling is illegal" crowd to state their case.  It does vary by state.  It might be termed "illegal" in Ohio because of their super strict regulations, but we have people "wholesaling" in just about every state in the U.S.

I'd put 10x more weight on the responses you got above from experienced people in WA state.  If anyone not in your state is telling you it's illegal, that info is worth what you paid for it.

P.S. "Wholesaling" is not even a legit legal or real estate term.  It refers to getting a property under contract to purchase, and then assigning your contractual rights to another party, via a contract assignment, in exchange for some consideration (an "assignment fee").  In my opinion, the term is slang in our business.  We use it, but just be aware if you talk to a attorney, broker, or state regulator about "wholesaling" they will have no idea what you are talking about.  Ask about your legal right to assign a contract for the purchase of real estate to another party in exchange for compensation.

RE investing in general is best done in cities and suburbs where there is a strong demand for housing and it's easy to determine home values based on recent sold comparables.  In rural markets, it's hard to figure out what a house is worth, and that's a big problem for us.

Your sweet spot will be in lower 1/2 of market values, so if the median home price in your area is $250K, you want to looking well below that.  Expensive homes tie up too much or your capital, rehabs are expensive, and you put all that capital at risk on 1 deal.  Better to diversify your risk by doing multiple cheap houses rather than one expensive one.

Last, wholesaling is really just FINDING the property and getting it under contract.  You then assign to contract to a cash buyer (REHABBER) and they do the project.  So there is no difference in marketing between the two methods.

As a wholesaler, you need to buy the house cheaper than a cash buyer will pay for it, or you make no money.  A cash buyer can come in and beat your offer.  Plus, marketing for deals has gotten so expensive in many markets that wholesaling is not even viable.  If it costs you $3,000 in marketing cost to get a deal under contract, and you get a $3,000 assignment fee, you made $0.

Most new people in the business GROSSLY UNDERESTIMATE the marketing cost to consistently bring in a flow of deals.  To make $15,000 profit in a month you really need to look at "flipping" (cash purchase + rehab), not wholesaling.  You can make $15K on a flip doing 1 house a month.  But be prepared to spend $5,000 in marketing every month to get those deals.

Hope that helps.  Wish you the best!

"The wise make more opportunities than they find." ~ Francis Bacon

You paid to get the properties on the MLS, right? If they are priced right and on the MLS, buyers agents should be finding them and showing them to clients. If that is not happening, either something is not right about the way your props are showing on MLS, or perhaps you are priced too high and agents are deciding not to show them.

Hope you solve that puzzle!

YES, I would (work with a new agent). But my RE agent partner has a lot of experience in the area and knows values in different neighborhoods better than I do. Her experience is critical in my determination of an accurate ARV. I really value that knowledge, more than just her ability to do CMA (comps) for me.

Alas, there is a reason that the price is FREE, and yet, there they sit.

=)

I have no idea what to do with those, but if I had a deer lease (land for hunting) here in TX, one of those would be AWESOME.  Good luck!

Guys - I see a lot of you worried in this thread that this applies to your state.  NO it doesn't!

OHIO is unique and we have to be very careful how we conduct business in that state.

Don't apply ANYTHING you hear about Ohio to your state.  In Texas, Kentucky, you name it, wholesaling is ALIVE AND WELL.

And in Ohio, get your RE license if you want to do RE....

I'm already starting to think you may be a marketing GENIUS.  That title got me to click to see what was in here!  Man, I wish you the best and hope you find what you're looking for.  You have my vote!

 I'll be super interested in hearing if you work with them and what your experience is.  Please keep us posted on this!  Thanks!