All Forum Posts by: Kenneth Z.

Selling at 48,000 is in line with the .7 formula. I am assuming you don't already have a buyer lined up? Once you do get a buyer for this property try to form a relationship with that buyer if you do you won't ever need to ask this question again. You will understand exactly what they want and what there business model allows for. This seems like a deal to me I don't know what you locked it in at buy I hope all goes well.

Is there already a tenant in the property? If so are you trying to flip wholesale to a fix and flip investor or a buy and hold investor?

Hi

I am looking for an investor friendly agent to network with in the Riverside County area. If you would like to chat message me on here and we can start a dialog.

Just out of curiosity have you not started negotiating with the seller? If this property goes to auction August 8 and you are still on the sidelines I am going to say you don't have a chance. If you are already in negotiation with the sellers but don't know the remainder on there mortgage to include how much they are behind. You are going to need to ask if there are any liens on the property. Unless I am misinterpreting your post it sounds as if you are unable to ask these question from the seller because you are not in direct communication with them. If I am wrong let me know if I am right now its probably not going to happen unless you already have a buyer in your pocket to wholesale this deal to. 

If you are serious about getting into wholesaling I suggest build a buyers list first. There are plenty of blogs on how to do that so I won't get  into it. Having a buyers list helps in a couple different ways. As you are looking for deals if you have a buyers list you are using the criteria that was given to you buy your perspective buyer. When negotiating a deal that you have found you will feel more comfortable knowing there is a list of interested people that will buy your property. The out-clauses for your contract are nice if you absolutely can't find a buyer however, if you can't find a buyer for your deal it's not actually a deal and your math is off. Talk to the buyers and figure out why its not a deal and what deals they are looking to see brought to them.

What sort of holding cost are you going to have? From your description the profit margin on this deal is almost razor thin. If you are going to hold them and sell on the same time frame land usually sells at then I don't see how its worth it. If my math is correct you are not even making a couple thousand dollars on the deal once you sell. Then you don't even know if they will sell in the 3-6 months you are forecasting what if it takes 9 - 12 months. I think the spread is way to thin if you can't afford to use a title company and potentially you won't be able to offload until 3 - 12 months down the line.

If you are trying to wholesale a deal even from a relative you need due diligence. I am fairly new myself but I would start by cold calling real estate agents in your area and asking them average time on market for land in the area. Also look into finding any other land deals in your area that were purchased with cash. This will let you know what investors that are looking to purchase land are willing to pay. Make sure your numbers are correct before you lock this deal into a contract. The only way to know for sure if it will look is to find out what liens are on the property. Once again I am new to real estate investing but you need to do some homework first. 

I agree as for per the previous comment. If you are making a 10k assignment fee it might be better to just double close. If the spread for the fix and flip investor is 45k not counting holding costs, closing costs, and anything you might not have factored into the above math. Letting him see you making 10k for only a couple days work will be dangerous. It all depends the investor might not care but at the same time he is taking all the risk and in the end isn't making a great deal more than you.

I am a new wholesaler in Riverside County CA. I am currently marketing to properties and working with an active investor/mentor. I wanted to know if anyone in my area would be interested in working with me? I will not lie and say I am super active and locking deals up every day. I will however say that I will strive to get the properties you are looking for and as I progress I am looking for investors that I can grow and expand with. If interested either leave me a message on here. I look forward to hearing from you.