All Forum Posts by: Brandon Krieg

@Nicholas Groover - That is a great question.  Good suggestions on this thread.

However, I wouldn't worry about this yet.  This is a GOOD problem, and something that will only happen many steps down the road.  Focus on getting your mind right, building your systems, finding deals, and finding buyers. Things fall into place from there.

@Alexander Forrester - @Jose Flores had an excellent idea.  Good stuff there.

I am a huge proponent of local meetup groups.  People like working with people they know.  So, research your local area (or the closest metro to you).  Find the groups that are there, and attend EVERY time.  Be active, and talk to people at the meetings.  By consistently attending and bringing deals, you will create a very tight and strong buyer network.  Good luck!

@Malcolm Shelby - As a word, I would recommend looking over a script, but not reading from it word-for-word.  Even a bullet point list of questions can help.  Unfortunately, unless you have practiced A LOT with the script, it will probably come across as robotic.  In addition, as soon as they ask a question or give a response your script doesn't cover, you might be in a tight spot.

I would recommend making a few points you want to ask (or say), and then just  have a conversation.  Fortunately, most of these conversations are pretty basic.  No jedi magic needed!

@Paula Leon - If you are considering getting a free one online, DEFINITELY have it reviewed by an attorney who practices in your state.

@Nicholas Groover - There is a third way.  You can assign the agreement in ADVANCE of taking the contract to the title company.  This method requires a lot of trust between you and the end buyer, because they provide you with a check before the deal is closed.  Of course, you would honor that trust by refunding the wholesale fee if the deal fell through.

I find this is one of the better methods, because the end buyer gets to choose their own title company and there are fewer moving parts.

In ANY of these methods, you want to make sure your paperwork/contracts are excellent.

@Deshawn Jackson - I agree with @Darren Lenick on most of his points.  When you calculate numbers, you're better off running numbers (roughly) like this for a flip exit on a wholesle:

ARV - 10% (commissions, closing costs, etc) - Repairs - End Buyer's Desired Profit - Wholesale Fee = Max Offer.

This is oversimplified, but it tends to be better than other 'rules of thumb' like the 70% Rule.

For this particular property, a wholesale to someone who fixes and rents may be your best bet.

I second what @Jerry W. said.  Being upfront about what you do, without being pushy, is the best way to go in my experience.

@Jeremy Love - It's hard to say what the 'Best' Wholesaling method is without knowing what you're looking for.  I think that @Justin Fernandez had a great rundown on how to get going with driving for dollars.  

Craigslist is another great way to go, if you want to reduce your overhead.  There is a big difference in marketing methods between looking for motivated sellers and looking for the types of houses your buyers want.  Each demands different marketing.  PM me if you would like some more details on what I mean... it takes a long time to write this stuff up in a post.

@Felicia Whitehead - You can, if you do it as @Account Closed suggested.  BUT... you should likely do it in conjunction with the other wholesaler (as essentially a Joint Venture).  If you want to do it, you should certainly be bringing separate value than the other wholesaler can bring.  For instance, if you know other buyers, and the other wholesaler doesn't that can be a good arrangement.

If you bring the same deal to the same buyers, many will be turned off, and assume there is something wrong with the deal.

@Ricky Robinson - I think most of your questions would be best answered by a real estate attorney practicing in the state you would like to work in.  If you start working in a different state, find a real estate attorney who works there. If you need local recommendations, the forums here are a good place to start, and local meetups are another.

I have used an LLC with success. I have started C Corporations for other reasons (non-real estate), but have never used an S-Corp, so I can't personally tell you the pros and cons.

ALWAYS have legitimate documents created by attorneys for the appropriate state.  Well worth the (small) cost.

Good luck, and thank you for your service!