All Forum Posts by: Duncan Hayes

@Pedro Navarrete Double close. That way you are actually performing on the contract.

@Ian Stephens if you’re referring to the contract between you and your sellers then you can use your own. If you’re new I’d advise making sure that it’s a well written contract, so getting assistance from any expert whether it be a; lawyer, investor, title company, or whoever, to make sure you’re using a contract that isn’t boo boo.

@Robert Hamilton exactly. Lock in transactional funding, which is pretty easy to find; just be sure to vet the lender of course, and you’re good to go.

Double closing is a way to get the deal done of course, but what’s most important is your negotiation skills because you wanna get that contract at a price where you can afford to cover your transactional funding costs & still put some $$ in your own pocket.

Good luck and let me know if I can help in any way in the future.

@Robert Hamilton if they have a no assignment clause then it doesn't matter if you have a LLC or not. There's no assignment possible. This is why YOU need to write the contract and be in control of the deal.

@Braheme Days I have a perfect PSA for wholesaling. Reach out to me.

@Manuel Cabrera the TREC is 100% assignable, unless written into the contract that it’s not. You wrote the contract out and not the seller, you have no problems.

@Robert Hamilton you don't need a LLC to wholesale. If you want to use one though then just form it. Like a lot of new folks, you're focused on something that doesn't really matter.

Find your title company, find buyers, learn their criteria, find properties to put under contract. During the whole time be studying and learning.

@Louis Davis I feel that’s bad advice. Why?

1. You aren’t being honest. My first deal came from a realtor referral. I did not act like a buyer. I told her exactly what I was doing and let her make the choice to work with me or not. If one won’t work with you there are ten others out there that will. Pretending to be a buyer when you have no intention on closing a deal is not only unethical and pretty much illegal, but it’s wasting time. How many ppl are gonna take you serious after wasting their time? Especially when their paycheck is determined by performance and not an hourly rate. Honesty is the best policy.

2. Working with agents shouldn't mean trying to wholesale MLS listed properties. Is it possible to do? Yes. Often? Probably not. People list to get the most money they can. Not to sell at a discount. Working with agents should consist of them sending you properties that AREN'T listed. Be upfront and request they send the leads they get that just aren't what you'd see on MLS, aka handyman specials, the deals that conventional lenders aren't gonna fund due to the amount of work they need. For sale by owner leads they find as well

@Ladinaka Samuels wholesale deals are never gonna be considered as “offering enough,” due to the fact that we’re calling strangers and asking them to sell us their properties at a deep discount. Your offer will always be the lowest when compared to a flipper going direct to seller or a retail buyer. Instead of directing time to Craigslist leads and what not, you need to build a list of properties where the sellers will have motivation to sell their property at the discount you’re asking for. Motivation consists of multiple things; death in the family, outta state landlord who’s tired of late rent payments, immediate relocation, foreclosure, etc. If you’re calling people who aren’t motivated to sell at a discount then you’re just taking a gamble. Will you get a deal that way? Maybe, but the chances are slim to none. You need real motivation. Compare it to someone who’s bought a brand new 75 inch tv because they came into some extra money. Then three months down the road they can’t pay the rent or have a family emergency out of town. They need quick cash, so what do they do? Load the tv in the car and hit the pawn shop, where they get less than half of what they paid to purchase the tv in the first place.

As far as formulas, there is no EXACT formula to follow. Your ARV = 70% - repairs - your fee - closing costs = MAO is a guideline. This is why I tell the people I teach to focus on finding BUYERS FIRST. Why? Because every buyer is different, just like every market is different. Some buyers are buying at 80-85% of ARV minus the other costs. Buyers who will buy using terms will buy at higher percentages as well. This is why it's imperative to find a few quality buyers FIRST, then find properties that fit their criteria. This saves you time in chasing dead leads, as well as gets your deals assigned quicker. When you find the lead you'll already have an idea of which of your buyers will pick that deal up.

Wholesaling is not easy, but it is simple. It takes strategy and consistency, as well as the ability to talk to people. All the new folks get hung up on formulas and talking to realtors, when in reality what should be focused on is communication skills. Sales skills. If you aren’t asking the right questions to find the right answers from the right people, then you’re missing out on deals.

Shoot me a message and let’s see how I can help you out if you’d like.

@Zoerene A Mitchell you can always offer seller financing. Does selling this way fit the seller’s needs though? Is there any need for immediate cash right now? If so then they are more likely to disregard a seller financing offer. The best thing to do is try.

11 properties for comps seems excessive to me. I’d go through the 11 comps and shorten down to 3-5 properties that are the most similar to your subject property. Duplexes, sqft within 20% of your subject property in either direction, same room/bath count, built within 10 years of subject property, etc.

Either it’s a deal or it’s not, don’t spend too much time trying to make it a deal. Come with multiple offers as well, each catered to the needs of the seller, which you should have a pretty good idea of from speaking with them. A lot of times ppl hear multiple different offers and they don’t realize they can say no to all of them, and they end up picking the one that fits what they’re looking for best. Come with a cash offer, seller financing offer, & lease w option to buy offer. If you are licensed you can even through an offer to list for them in there. That’s 3-4 offers, which will get you much better results than coming with just one.