All Forum Posts by: Lydia R.

 Cold calling and SMS are both getting pretty saturated because the gurus are teaching it now. PPL and PPC are going to get you better leads. It costs more, but you are getting warm leads who want to sell. So the deal pays for the cost. 

 Wholesaling is not as straight forward as it used to be. Make sure you research the rules in your state because many states have some kind of regulation about assignments of contract and you want to know what the rules are in your market. The best place to start is learning the process. I see so many newbie wholesalers that watch one youtube video and decide they know everything they need to know. Learn the process, get the documents (all you need is a purchase agreement and an assignment of contract agreement) and find a title company that is wholesaler friendly. Having the right title company is going to make you so much more money. Take the time to find one that is going to be an ally for you.  

 What part did you have trouble understanding? SMS is just text message marketing. You skiptrace a list, upload it into a text blast software and then it sends a text message to the list. Have chat GPT help you craft a compelling text that gets your message across. 

@Jason Fucci At some point you have to stop researching and start taking action. If you've done thorough research you'll be familiar with all the marketing options: cold calling, text messages, direct mail, bandit signs, PPC/PPL etc. Personally I tell people to start with actual market research. WHERE you look for deals matters just as much as who you get the deals from. What zip codes are desirable? What is your median sale price and average days on market. These details matter. If I were you, because of the economic climate we're in, I would start with buyers. Buyers have all the leverage right now and they are much pickier than they used to be. The big hedge funds have stopped aggressively buying and many more investors are taking a 'wait and see approach' so to minimize the chances that you will be stuck with a deal you cannot sell, build a solid buyers list so that you can sell your deals easier. And you can even pick up some extra revenue when you JV with a wholesaler who has few buyers.

@Michael Murphy If you've already checked the obituary, you should have seen next of kin mentioned in the obituary. If someone put the obit together then there is a next of kin. Did you check the probate filings to see if anyone started the probate process? If not, and you cant skiptrace and find the relatives mentioned in the obit, try calling the funeral home and asking for the contact info of the family for the deceased person. If they wont give it to you then tell them you have an important message for the family and have them contact you as soon as possible. I hired a private investigators once to help me track down a next of kin because 3 generations of direct descendants were dead. The harder someone is to find, the less competition you're going to have. 

I've done both. It depends on the situation. When my wholesale fee is over a certain amount ($20K-$25K) I tend to double close to keep from ruffling any feathers on the buyers side. The cons of this are that you will have to fund the A-B side of the transaction. And cover the closing costs. So you need to be getting a higher fee in order to offset the cost. With an assignment, its much simpler and there are no costs for the wholesaler. If you are in a state like Illinois, you will have to double close if you arent a licensed real estate agent. 

You are going to need to speak to a CPA. But the general answer to your question is no. If you are earning income of any kind, the folks at the federal government want their piece. Wholesaling is earned income which is subject to taxes. Putting the house into an LLC does not protect you from paying taxes. Definitely seek some expert advice from an accountant or CPA who can advise you on the best ways to reduce the amount of taxes you owe to the IRS

Without knowing all the details (ARV, amount of repairs needed, other debt on the property etc) its tough to advise you properly. However I will throw one thing out that might be of help. I just recently partnered with a lender who has agreed (after much convincing on my part) to offer 100% financing to wholesalers to be able to close on their deals. Perhaps this is the solution for you since the seller is running out of time. I assume the property will be auctioned on July 2nd? Does your state have a redemption period? If so, you can still wholesale the deal as long as the numbers make sense

Wholesalers who are able to close on their properties before reselling will have the advantage. I am working with a lender who is offering 100% financing to wholesalers who want to close on their deals and then resell. I think that is what the future of wholesaling will be and a lot of the bad apples will be out of the game. Which I dont think anyone will be terribly upset about. 

I've have not taken it, but I have spoken to some people who have and the reviews were not positive. All the big name gurus will promise you that their program will teach you everything you need to know to be successful...and then this hit you with a MASSIVE price tag. That money is much better spent on marketing for your first deal. Wholesaling isnt complicated. Its actually very simple. Those who are making millions of dollars by teaching it have to make it seem more complicated that it is so that you feel like you need their expensive programs. I've been wholesaling for over 8 years and I promise you, there is more knowledge to be gained by getting started and learning from real world, hands on experience than from paying $2,000 - $15,000 to some guru from Youtube. Im happy to answer any of your questions! Take it from me, spend the money on marketing for your first deal.