All Forum Posts by: Lydia R.

Do they have reviews? Id be leery of a company that has none. Also you are one person, you arent running an enterprise just yet so I think needing acquisition and disposition managers is a bit of overkill. Especially since they are total strangers and could easily be stealing your deals and you would have no idea because you essentially hired a company to do every aspect of wholesaling for you. They streamline the entire process by doing everything for you including cashing your checks. As someone who runs their own wholesaling business, I see a lot of potential issues with this level of outsourcing. 

Great question! Impossible to answer without a lot more information. But a good rule of thumb is 20% set aside for taxes and 40% to reinvest in your business to get more deals. 

 There is no best class of property for wholesaling. All of the above can be wholesaled. So can land and mobile homes. You just have to pick which arena you want to jump into. All these types have their own pros and cons. For example, mobile homes are easier to find and cheaper to buy BUT the fees on these deals are smaller. But the deals come together quicker. With multifamily 6+ units its going to be harder to find owners who want to sell and who are willing to sell at a discount and the analysis is no longer based on comps its based on cashflow. But the potential wholesale fees on these properties is much bigger. So as you can see there are pros and cons to each property type. Just decide which one you want to pursue

 Absolutely you have to analyze a deal. You are going to analyze some non deals too Im afraid. Thats the only way to tell a deal from a non deal. And a good deal is going to be a property that can be bought at enough of a discount that the end buy and you can make money. 

 EXACTLY!!!! That is your differentiator! As soon as your message is different from everybody else's you will stand out in a crowded market.

 Hi Rosendo! I am in the Austin area! Great job being so dedicated at such a young age! Id be happy to give you some suggestions on how you can get started! There is a great book out there that you've probably never heard of and it gives you the entire process step by step. Like the book says this is what you do first, this is what you do next and this is HOW you do it. If you are looking for a blueprint this is it. And of course feel free to reach out any time and ask questions! I am happy to help. Austin is a tricky market to wholesale in so I can give you some pointers that will save you a lot of time! 

 There is nothing unethical about wholesaling as a real estate strategy, it's when uneducated, misinformed or maliciously intentioned folks start behaving unethically that things go south. There are some very bad apples out there. But wholesaling as a strategy is just as legitimate as flipping a house, renting a house or owning a short term rental. So please dont make the rest of us look bad. Behave ethically, don't put any old ladies out on the street and just try and solve people's problems. Its OK to tell a seller that they have other options. Its OK to tell them that selling to you isnt their best option. 

If you ever have questions please feel free to reach out! 

 New York is an odd bird of a state. Yes you and the seller and the end buyer will all need RE attorneys. I can't confirm the 10% earnest money thing, but I have a friend who is a real estate attorney in NY that could answer these questions for you so you arent relying on bits and pieces youve gotten from other folks who may or may not know what they are talking about. Send me a PM and I will share her contact info. I also have a friend who is a very wholesaler friendly real estate agent in Buffalo and I can connect you with him too. 

 Well....you're kind of right. Wholesalers are deal finders. They dont actually close on the deals and they do not get a 'cut'. Wholesalers find the deals, put them under contract, mark them up slightly and then sell the contract to an investor who will actually close on the property and implement their desired exit strategy. 

If there is a deal flow mecca and you find it before I do please leave a trail of breadcrumbs so I can find it too. Thats not really how this works. If you are wanting deals to sub 2 then you have to go out there and find them. You will have to shake a lot of trees and kiss a lot of frogs. Its an uphill battle because you first have to explain what you are trying to do and how it works. But it happens everyday. I know many investors whose only acquisition strategy is taking over mortgage payments. 

The best candidates are going to be owners with low equity but great interest rates so pretty much anyone who purchased in the last 5 years. Preforeclosure owners who are upside down. Short sales. Those are the types of leads you should be looking for. 

The first letter should be an introduction. Who you are, why you're reaching out and how you can help. Offer them something other than just buying the house. If you are an agent, offer to provide a CMA. If you arent an agent offer something else--lawn care company referrals to keep the property from getting code violations. Offer them something of value to them without asking for something for yourself. Everyone else is going to be asking to buy the house and talking about themselves and why they are so great to work with and how experienced they are. But people are inherently selfish. They just lost a loved one. They dont give a rats you-know-what about your life story. Make it about THEM. Offer them a service or a kindness. If you have experienced loss or gone through the probate process, share that as a way of relating to them so they know you understand what they are going through.

Second letter is a follow up asking if there is anything you can do to be of service. Third letter is going to reference the first two and say hey sorry to bother you again but I havent heard from you and I have an interest in buying the property if you want to sell it. If I dont hear from you I will assume you arent interested in selling. Last letter should be, I assume you are going to keep the house in your family. Let me refer some contractors/sub contractors to help you fix the place up. This letter should be you offering to add value to them or help them if they need it. Hopefully they will respond to one of these letters.