All Forum Posts by: Joshua Martin

To some degree I'm encountering a similar situation: having a real estate license and finding a broker that will permit me to wholesale real estate. I'm also just starting to actively market to find good deals. 

I guess the brief summary would be something like this:

1. Talk to your broker (if you have one), because you might need to switch.

2. Talk to an attorney and / or title company. They will give you good guidance as to how you can operate with this hat on.

3. Decide how you are going to find off market properties. They are just that, off market, so you can't really look on the MLS.

4. Start mailing or driving for dollars or posting bandit signs or whatever you're going to do.

5. Find a deal. At this point that request for mentorship will be meaningful when you engage mutual self-interest. As someone to help walk you through the process - contract, contingencies, title work, etc. - and split the deal. As they are fond of saying on the podcast, part of a deal is better than all of no deal.

  If you haven't already, the Ultimate Beginner's Guide Real Estate Wholesaling gives sort of the blueprint you're asking for.

Best of luck,

JTM

Hey @Chabu Nsokoshi! 

  Welcome to BP! Just keep diving in.

  As far as your question goes, I suppose it depends what you want to do. If you want to wholesale specifically, first make sure assignments are legal in your state (I've heard they aren't in some, I think you're fine in IL but I can't guarantee it), and then work on finding deals. The license seems an unnecessary piece if this is your specific goal.

  This is coming from someone who doesn't have a lot of experience but is actively trying to find deals and wholesale them, but someone who also took the time to get a license. At the current moment it's actually an obstacle, as I'm having trouble finding a broker who will let me hang my license there and not want to split wholesale assignments fees 50/50 or 60/40 because they consider it real estate brokerage. 

  So, at the moment I'm a little irritated I have it because it's posing this additional challenge to wholesaling (because I want to do everything above board and have my broker know what I'm doing), but I think down the road, like everyone who has it says, they can't imagine not having it. That will come, at the moment it is an unnecessary challenge. 

  If it's the education you think you might obtain from getting your license, I would say that it simply isn't necessary. You can get all of that information studying on your own from books or here on BP.

  Best of luck, and go find that deal!

JTM

Allen Felker Great thread. I'm trying to jump into the wholesale game because I'm also starting with pretty limited cash (enough for a small marketing campaign), and I plan to conduct myself exactly as you describe. My basic idea is, the seller and I have to be happy with the deal. I'm not out to be a shark or go for the throat, I'll offer as much as I can to make a deal still that, a deal. As for agents, I do have a license (and so am trying to navigate the terrain of doing both) though I primarily want to wholesale. I don't think one is better or worse, they are just for different sellers. I spoke with someone yesterday who called me off a yellow letter, and because she is in no pinch to sell, I suggested she list on the MLS because she could get closest to the 'as is' value as possible. The way I see it, the services of a wholesaler are just for a different type of seller altogether. To be honest with where I'm at though, while I don't intend to tie up poorly priced properties and try to shop them around, I don't yet have transactional funding, so based on your advice, I'll be talking to hard money lenders. (Is that basically where you'd look?) And lastly, I think wholesalers get a bad rap because there seem to be a lot of junky ones. Just fielding calls and talking to people the last few weeks I've talked to three now that talk talk talk about their connections, and try to get me to shop around clearly over priced properties. I told one he was out of his mind. In any case, good stuff. And let the haters hate. Best, JTM

Dave McEvoy Hey Dave, welcome. I'm working the same strategy in Milwaukee, and getting closer and closer to that first deal (I kind of bird dogged one), but here's what I would say. First of all, this contingency should be obvious and not hidden in the contract. I believe the seller should know your intentions with the property, I.e. You're going to sell it to an investor, and not buy it yourself. That said, I would be careful not to mislead motivated sellers. If it's a deal with meat on the bone you should be able to sell that contract, but I wouldn't put a 'deal' under contract when it isn't one. You'll frustrate yourself and most unfortunately get a sellers hopes up that their problem is going to go away. Know your numbers and be confident that it is a deal. That first and foremost. But still, your concern is legitimate. What if you can't find a seller for your great deal? Maybe you want to buy it. Try private money. But if all else fails, your contingency will be something like "this contract is contingent upon finding an end buyer," or "this contract is contingent upon the inspection and approval of an end buyer." Again, back to point one, it should be no mystery to the seller that there is or will be an end buyer. And if that is clear then assuming you ever end up in court there will be no confusion that you were actually going to buy the property. A local wholesaler has a separate acknowledgments page to her contract that I like. Given your in an attorney and not title state, I would find an attorney and double check everything you're going to do. If you don't have state approved forms then maybe you want or need to spring for an attorney to draft some for you. Or ask other wholesalers. People are helpful. Best of luck, and I hope that helped a bit. JTM

Good thread. And thanks for the input everyone. Working the daily reporter on these is one of my next tasks in Milwaukee. 

@Jesse Carreon

Hey Jesse! Welcome to BP? I'm just wondering where you were looking to buy in the area? And what your price point is? As others have commented, there's great variance in the area in the cost of multi-families. Maybe a good place to start for getting an idea (and understand that you could offer whatever you wanted on these properties), is Milwaukeemultifamily.com. I just like to cruise it to see what's out there. I think he just compiles the listings from all other sources, so obviously won't have off market properties. Best of luck.

JTM

Dacia Ray I would recommend talking to the city (wherever you are) about these issues, as this is not a model most investors are going to work on (myself included). However, I did have a sit down with a guy a few weeks ago who is doing a massive deal for the city of Milwaukee buying some 200 city owned houses with private capital, totally rehabbing them, and then renting them out with rent controls section 8 housing. His deal works because the city gives his company a massive tax credit (almost a million), every year for 10 years. Obviously that's not small time stuff, and way over my head, but this sounds like a city issue as well as an investor issue. I hear you though, and reading evicted had me thinking maybe there is a way to approach this with some kind of secured section 8 low income housing. I don't think most tenants are just trying to scam you, but when 60-70 percent of your monthly income goes to rent any inevitable setback can put you behind on rent and in danger of eviction. Best of luck, JTM

@Darren Budahn

Thanks again. That's actually what I did and they were very helpful. Nice group over there. 

Hey Gang, 

 Just looking for any recommendations for a real estate attorney here in MKE. I'm trying to navigate this gray area of having a license and wholesaling properties. Hoping this route works out. So specifically if anyone knows an attorney who has worked with wholesalers it would be greatly appreciated. 

 Thanks in advance.

JTM

Welcome Bryan Lindgren ! Just keep diving in! Your path will emerge. I've only been on here about six months, but daily reading about REI has made me familiar with many of the concepts as I'm working on finding that first deal. Best of luck!