All Forum Posts by: Barry Pekin

@Mike Celli,

It's definitely legal in VA. It's legal almost everywhere, and even where it isn't, there are really just some rules you need to follow. You have to be careful not to broker without a license, but that's not wholesaling.

@Andrew Moran,

Having a company and a web presence adds to your credibility.  That said, when I speak to people, they don't normally ask about things like that.  They're more interested in their situation.  I tell them that I work with a large network of local buyers.  Be honest.

@Brandon Dorsey,

Or cold calling.  Preferably both.

@Micheal Kesha,

Meetup, as suggested, and also local REI Facebook groups.

@Owen Thornton,

Liens on a property indicate some level of financial distress, meaning you might have a more motivated seller.  And since the lien will be satisfied during the sale, it's probably a nice perk for the seller who's had this hanging over their head.

@David Carpenter,

I'm a big fan of PropStream.  It has built in comps when looking at any property, and you can manually do comps if you prefer.  I like to sometimes refer to their comps and then do my own and see how accurate they are.  They're pretty good.  You can even print out a nice comp report.

@Martin Bastida,

I think it sounds like a very good plan.  Get out there and go for it!

Remember it's a lot of hard work.  Once you find those 400 properties a month, you're going to have to do a lot of work to lock them up.  It can take quite a few attempts with each one to start getting them lined up.  Don't expect to call them and 1-3% of them just jump at your offer.  Whatever your marketing plan is, you're going to have to keep at it.

I think your assumption of how many deals you're going to close each month is very optimistic.  On a positive note, I think your average wholesale fee is low.

Also pay attention to the laws in Chicago.  They recently enacted a law that let's you do one wholesale deal a year if you're not a licensed agent.

I'm a big fan of having an official business entity for various reasons.  Not the least of which is that you start to think of it as a business and not just a hobby.  It helps you (or at least, me) to treat it more seriously.

There are also asset protection and tax benefits.

@Jason Lewis,

I'm also a big DIY'er, and setting up an LLC is a piece of cake. As for contracts, you can probably get some decent ones from local investors or a title company.

That said, have a good attorney on your team. REI is a team sport, and you want a good team.

If you have a solid attorney, at least get in a good consultation. Ask about what specifically you should do in setting up your LLC for what you want to do, and then have them review your contracts.

@Andrew Moran,

My opinion is that it's better to start locally.  It gives you a much better opportunity to learn your area and learn the business.

High prices shouldn't be a problem.