All Forum Posts by: James Green

@John Morgan there are quite a few moving parts with wholesaling a short sale. From what I'm reading into your post, you are kind of to late to the party if you've never done this type of transaction before.

Some of the pieces you definetely need:

1) A realtor that works with wholesalers!!! They have to know that the goal is that you will be selling the property to a cash investor. The realtor should have a negotiator on thier team or they negotiate themselves with the bank

2)You need an LLC setup to purchase the property under. Yes, you will be "buying" the property since you can't assign a property once a bank is involved.

3)An investor that is 99.9% going to buy the property from you, if you can get the price of the property negotiated low enough for them and also to add on your fee.

In my opinionm the "best" way to do a short sale wholesale transaction, is if YOU are the one working with the homeowner & an investor friendly realtor initiating the short sale process & having a few buyers in place that want the property & can give you a price they will buy it at.

@Harrison Krause , I agree with @David Sussman, if the wholesaling podcast that you are listening to haven't taught you how to find cash buyers, for FREE, then don't listen to them.  Finding cash buyers is like shooting ducks in a barrel. In fact I know of one website where you can find thousands of buyers looking for wholesale deals. You may have heard of it, but it sometimes goes by "BP".

The hardest part is finding the deals. BTW, you don't need a deal to have a list of buyers, in fact you don't want a "deal" before you have a list of buyers. I had a list of over 100 buyers before I sold my first deal. When I finally had the deal, it sold in days, but only because I had a list of buyers to send it to.

@Jay Hinrichs agree with you totally.  I often get approached all the time about wholesaling & I usually ask them why. Once they go through all the usual responses - I heard no money....., "quick way"...., "easiest to get into real estate"...., I burst their bubble! The big wholesalers in my area are indeed medium to big companies. In fact, probably the biggest cash buyer in my market shifted focus to wholesaling. They advertise on tv/radio non-stop.

@Account Closed, I'm not a realtor nor play one on tv, BUT doesn't your broker need to first approve of you wholesaling?!?! I resisted the urge of asking,.. "Have you asked your mommy?"

@Emmanuel Salcido buyers are EASY to find! Here are a few quick ways:

• Advertise on BP
• Advertise on Craigslist. If you aren't sure how, go to the Homes for sale section & do a search for "wholesale", "investor special", "as-is", "distressed" etc
• Attend local REIAs in your area and bring either business cards or pen & paper. Network and get names & numbers to follow up with them

All of these are free/inexpensive to do & can be done immediately.

@Dave Ato, there are no such things as "best". All things work if done consistently over time. If there truly was a "best", you wouldn't be able to get that answered for FREE on the internet.

I do agree with @Ned Carey regarding Balt city, you need to find the seller b/c they are getting bombarded with letters/post cards and that's even if you have the correct forwarding address. My partners, my VAs, & I, do a TON of cold-calling in Baltimore and have had good success. But, again I said "A TON!!" Once you have your script down pat, it's not as scary as it may seem. I even make calls in my car while stuck in beltway rush hour traffic, on my 1.5 hr commute home from my job. The results are predictable: I either get an appointment, not interested/not for sale, call my realtor, voicemail, or wrong number.

@Jason Todd why not look into doing a short sale? In order to even do so, you would definitely need a buyer that wants the property & is willing to pay your fee & the seller's walk away money, out of pocket or in other words outside of the short sale contract with the bank.

You definitely also need a investor minded realtor that has a bit of experience with short sales & short sale negotiations.

If you do a seller finance deal, then the monthly payment would definitely need to cover the mortgage & you would still need to get the arrears paid + walk away money + your fee, all paid up front as a down payment by the buyer. This could be a great deal for the buyer depending on how much repairs are needed to bring the property up to ARV.

@John Underwood thanks. I think also my PM is trying to dodge the issue, but I will be confronting them on these issues else look for someone else.

I  have a new tenant that's been in our unit for a month. On her application she stated that she had no dog. We recently found out that she has a dog. On our application any pets have to be approved and that there is a extra monthly fee. When we kindly brought up that on her application she didn't check that she wanted to have a dog, she stated that it's a service dog.

-Her "handicap" is not plainly visible in any way, so are we legally able to ask her why she needs a service dog?

- Can we charge her the extra for the "service" dog?

-Is this a breach of her contract because she lied?

Also she told our PM that she was divorced with 2 teenage children. We have everyone's name on the lease as occupants. She ends up disclosing to my wife in a general conversation that she is married & that her husband is deployed oversees and won't be back for x months. So this possibly puts us in a position of adding an occupant to the lease, only because they are married, but we have no idea who this person is.

-Do we have to add the "husband"?

-Is this a breach or can we void the lease and get someone else in the unit?

She seems to be a nice tenant & the dog is definitely friendly. I'm not sure if these are actual red flags yet, she's only been there a month but I want to be prepared.

thanks

@Louis Siano why do you feel you need "unlimited access to the MLS" ? As a wholesaler your buyers are looking for mainly off-market properties. If they want properties off of the MLS, they can use their agent for those properties. Investors are always looking for off-market deals, which is where you as the wholesaler give value.

I definitely would get one, if your state requires that. In the states where I do business, it is not required.