All Forum Posts by: Katlynn Teague

Good morning BP, 
We have ALOT of new wholesalers on here, starting out in the business there are alot of unknowns. I want to create a thread for anyone who has any questions this is the place to ask and get help. It can also be used as a reference for later on. 

Are you new to wholesaling? What's the biggest obstacle you're facing? HAVE QUESTIONS, ASK AWAY!

Hey Jedd,

I am located in Atlanta, would love to connect and help you out here! 

@Shubham Aggarwal I am not a100% positive, I would double check with your broker! 

 Absolutely!!

Good Afternoon BP,

Since I got involved in real estate a year and a half ago, everyone has made wholesalers out to be the worst players in the game. Well, I have come to realize, it's not the wholesalers. ITS THE GENERAL CONTRACTORS!

 This morning we went and walked a current flip that belongs of one of my coworker's investors. My other coworker's contractor contact is who is doing the renovation. To preface we budged $57k to renovate the house its 1,200 sqft, the investor had three different GC's come out and walk the property and one came back at $60k, the second at $75k, and the third at $100k. Now the investor went with the GC who gave him the bid of $100k because he felt as if he would do the best job and make the vision he wanted to portray and he pointed out things that the other contractors did not. Now when we were at the property this morning he told us the budget was now $125k... A $125K TO RENOVATE A 1,200 SQFT HOUSE, THATS $104 PER SQFT. There was only 2 men working on the house??  

As we all know material costs did go up, did contractors decide to double as well? It's breaking deals in half to where the numbers just cannot make sense. It's almost like they GC is hiding the money their making in the material costs. 

Moving forward, asking for breakdowns of labor and material costs. Then just buying the materials ourselves and asking for a labor breakdown and timeline is gonna be the way from now on. 

Hey Brooke! 

I would be more than happy to help you! 

Typically when you go under contract with a wholesaler, the wholesaler has a certain amount of due diligence, during that due diligence period the wholesaler will be trying to assign the rights of the contract over to another buyer for a fee. Then the wholesaler is compensated at close, once the transaction has closed. 

If a title company is involved, nothing changes.

Most of the time the properties that are being wholesaled are extremely distressed. These properties are bought at a majorly discounted price, then a fee is added on top, and the investor still has to make a profit on the backend. I saw on your profile you are a rental property investor, I would assume the property you are looking to sell is in good condition. The best bet for you may be to list on the MLS.

@David Ramirez is based in Florida and he would be a great resource! 

You need to use your state-regulated form. 

Since you hold a license you are held to different standards and requirements. If you are looking to wholesale full-time I would recommend going to a wholesale brokerage! This way you are protected and you get to learn from a team. Or you can put your license on in-active and go about it the other way!

Shubham,

1) The deposit would go to the closing attorney

2) If your buyer is ready to sign contracts, I would request the deposit immediately. 

3) You will receive it back at closing 

4) Deposits should always be non-refundable. This protects YOU, in the event your buyer backs out. 

5) The deposit can be whatever you want it to be! 

Happy Wholesaling! 

Mixing business and friendships can end a lot of friendships and businesses. 

Before moving forward, make sure you and your two friends have a signed agreement. Purchase properties in your group LLC and have your titles written out in your operating agreement.

If you guys cannot seem to make sense holding a property that produces little to no cash flow, try doing some flips! 

Alex, this can get very messy very fast. I would highly recommend taking your license and going to work for a wholesale brokerage. That way you are protected and get to learn the process from the inside out.On top of that you are surrounded by a TEAM to help you and answer your questions. Let's be real as new agents there is so much more we dont know than what we do know. Better to be surrounded by experinced agents doing what you are striving for than struggling trying to balance all of the license laws.  Once you have built a solid understanding, know how to wholesale, and have multiple deals under your belt then branch off and do your own thing.