All Forum Posts by: Michael Hayes

@Mark Brogan exactly.  Many wholesalers come off as shady when they present themselves as cash buyers but don't disclose what they really do.  If you plan on buying it, great, but I always let my sellers know that the house will be presented to a list of investors who all pay cash and close quick.  I've never had a seller to complain or say no if I tell the truth and they are motivated.

@Alex Holt my first deal was actually found by driving for dollars after taking a wholesale class through our local REIA. The very next week or so, I found an investor who had a FSBO sign in his front yard. We chatted about what he was looking for, I told him what I do, and we did a contract. The first one was by far the longest deal I had. My pricing was off and my buyers list wasn't interested in the area, so I had to crank up the campaign to find buyers. May have taken me close to 2 months, or maybe a little less. He understood that I was sincerely trying to help him and working hard on his behalf, so we got through it. Finally found a cash buyer, closed on it, and he was happy with how it went after he had not been able to sale the house for months.

No problem. Good luck on the first deal.

@Alex Holt I know some wholesalers who will not do a deal unless they make a minimum of $5000.  I think this is more of a personal preference though.  I'll gladly accept $1500 for a quick flip in a day or two, or even $500 for a house that may not be worth more than a few thousand.  I think a lot of money is thrown away for wholesalers trying to only go for the huge profits.  Those quick flips add up quick though.  A lot of this depends on your local market as well.

You as the wholesaler generally won't have to pay anything for the attorney if you use an assignment contract.  That's the contract we use to give our rights to buy the house over to someone else.  If you double close, then you're looking at paying closing costs.  There are a few articles on the difference between these two closing methods on the site as well. Fees differ from attorney to attorney.  The attorney handles the legal side of everything to transfer the house over to the new buyer.  Once paperwork is submitted to the attorney, you basically wait on the check. 

SO glad I found this post! Lol!  Has anyone had a mail recipient to call them crying because they were so angry?  @Ryan Dossey had my first experience with a guy calling me, not giving me any information and asking "How much?" a couple of months ago as well.  I see this is going to be very interesting the deeper I get into direct mail campaigns. 

Skipped over this part, but your contract should also have an inspection period of 10 to 15 days.  During this time, IF you decide to put earnest money down, you would be able to get it back if you decide not to do the deal, or you are unable to find a buyer. 

@Curt Davis thanks.  I figured as much but wanted to double check.  Most of the info I found on the group was about 4 years old, but I didn't know if maybe it was just a smaller operation.

@Alex Holt joining your local REIA is one of the best things you can do to jump start your investing career. You can shave a lot of time off your learning curve and the networking and relationships you form will have you in the game in no time.

In general, its best to either A: Already have a list of buyers so that you can move the property quick, or B:  Have access to funds so that you can pickup the property if you are unable to move it to someone on your list of investors.  In the case that you cannot find an investor, you would lose any earnest money that you put down, but in general wholesalers do not do this.  However, you don't want to be the guy going around writing contracts, but never closing on them.  Always have an exit strategy. 

I write my contracts to close within 30 days or less.  This should be enough time for you to move the property and is pretty standard.  You do not need an agent to close.  Anything that needs to be done is done simply with you, your buyer, seller, the contracts and your closing attorney. 

Check out this recent blog post.  http://www.biggerpockets.com/renewsblog/2015/08/04/process-wholesaling-housesassignment/

Good luck!

Local Memphis, TN investors, does anyone have info on the Mid-South Real Estate Investor's Association?  Is it still active?  I'm an active member of MIG (Memphis Investors Group), but I heard that Memphis had 2 REIAs.  The Mid-South Association's website is no longer working, and it doesn't seem that there are any other recent postings about the group on the web.  Does anyone have any info on this group?

Thanks in advance.

@Derrick Craig you make a good point.  I live in the 38125 area near Hacks Cross and most would consider this a great area.  Sadly, I've witnessed crime on my own street that had me jumping out of my sleep to see what happened.  Would I invest here though?  Without a doubt.  My current home is actually a live in flip that I'm looking forward to making some great cash on.  Not the safest place to live by any means but I have a lot of love for this city.  And still without a doubt a great place to invest.

@Erick Sanchez good to see you on the site!  Welcome.