All Forum Posts by: Duncan Hayes

You can BRRRR multifamily just FYI. Do you know what market you're interested in getting into? My buyer's list is huge, if you come across actual deals then moving them would be no issue.

What market are you looking to get into? I have a wholesale operation that operates nationwide. The entire point is to find distressed properties/properties where the owner is in distress, and need to sell at a discount quickly. Any way I can help, let me know! 

Hey, welcome to the forums. Welcome to real estate. Your desired path sounds similar to mine. I currently am building capital to purchase some small multi's via wholesaling distressed properties.  I wholesale all over TX mainly, but have done deals all across the nation. Feel free to reach out and connect, I'd love to help out any way I can. 

I wholesale in the Austin area, other major cities in TX as well, but wanted to reach out and see if i could help in anyway.

Feel free to shoot me a message so we can connect.

I literally just pulled a list of 100 duplexes in Austin that are showing either physical distress, or the owner is in some form of distress and needs to sell.

Duncan

No, wholesaling is NOT illegal or unethical. There’s a couple ways to do this:

1. Find a property and get an agreement with seller for you to purchase. Then after getting that agreement you sell the contract, aka your “equitable interest.”

You are not brokering real estate, you’re selling a contract to purchase something you don’t want to purchase anymore. What some would say makes this route unethical is the fact that the wholesaler probably doesn’t have the funds to close the deal themselves if necessary. How do you cure this problem? Simple, you make relationships with Hard Money Lenders who can back you in the event you cannot sell the contract & need to close on the property yourself.

2. ABC Transactions, aka “double closing.” In this instance you have transactional funding lined up. They will loan you the money to purchase from seller, (A to B part of the transaction). Same day, or next day, your buyer purchases from you (B to C part of the transaction). Your buyer’s money would cover the transactional funding, and you keep the difference.

Double closing is your work around to license requirements, since you are actually closing on the property. Your name goes on the HUD, etc.

When assigning contracts it doesn’t happen like that, and your only record of being in the transaction is when your assignment fee is logged in the closing docs.

Do what you want to do, make money, treat your sellers/buyers right, and make strong relationships. You’ll be fine. I’ve wholesaled properties in multiple states across the nation, never ran into ANY legal issues.

I've used both in the last two, almost three years, of wholesaling real estate. Between the two, the better service is Propstream. Now, that doesn't mean that everything you find on there is going to be spot on. It just means that of the two, the better system for data purposes is Propstream. They even integrated a D4D feature, so overall they have DealMachine beat. 

You can go to Propelio Academy (google it) and create a free account. Grant Kemp has an entire course in there on this, among others in that realm. Sub2, Seller Financing, Lease Options, you name it, there's videos for it.

I'll send you the invoice for the $3,500 I just saved you. :) 

While I live in Austin, I haven't done a deal here... yet. Most of my deals come from Houston, so I do everything virtually. I'm in a few markets throughout TX. San Antonio, Waco, Dallas. I'm also virtually doing deals in other states as well. 

My best advice for a newbie is to develop a system. Whether you're able to create one yourself or you have to pay someone who knows more than you to help you create it, do what it takes. If you want to succeed at it that is. Your best asset is data. Texas is very giving with data on the hcad website. You can also dig really deep into probate records as well. 

You also need to know how to build rapport when talking to people. Otherwise the data can be top notch, but if you cant covert the data to leads to contracts to assignments to a payday, then it's useless. Learn as much as you can. If you know the basics of how to do a deal from start to finish, then focus on finding the right data. The seller needs to be motivated in order to sell to a stranger at these discounted prices. Find their motivation. 

Also keep in mind that if you're reaching out to them, there's probably 15 others doing the same. 

Sheesh the hate for wholesale is real around here.

I just moved to Austin, but I love San Antonio. The market there is on fire. I market for wholesale deals in Houston mainly, but we come across leads in SA all the time. 

Thanks for sharing.