All Forum Posts by: Rachelle E.

Thanks so much Jackeline for your reply !!

Hi Everyone,

For a newbie, which is better to start with Probates or Absentee Owners? I'm sure with probates its a little more complex and the potential "angry callers" can become a little scary for a newbie. And with someone just starting like a college student with limited start up capital is it a good idea to hire a VA or should they do everything themselves?

@ Brian thanks for your reply I will be sure to clarify that with investors in the future. Sorry for the mix up

Will keep you posted !!! Actually spoke with a Real Estate Attorney that also handles Titles too. This was a recommendation from a Investor with the local franchise "Homevestors". You maybe able to give them a call for a recommendation. Not sure if North Carolina is a state that uses RE Attorneys or Title Companies. I'm also using them as a end -buyer. In my area there is at least 2 different franchises. Hope this helps

@ Brent and Stinson thanks again for the great advice !!!

@ Stinson Very True. Again it was just an example not true actual numbers on the repairs. My point was just to see if i'm running the correct formula if that was the true and accurate repair amount. Thanks

Thanks for the responses

@ Brent the 260k would be actual comps pulled for that area. This was just an example of a deal. Almost had a deal like this before. Repairs are a rough estimate from the house needing window replacement fairly big 2 story home with old single pane windows, needs new carpet, rotten boards around windows. Entire house needs to be painted Needs Central Air and Heat Installed etc. Basically the homeowner never repaired anything, but its not a complete rehab nightmare or anything. I agree with the minimum fee of $7,500 I just didnt want to start off in this business as someone who tries to be greedy and make the most on one deal. I want to have buyers come back for more business and I thought that if I were to have a large assignment fee that it may scare buyers away. Now I dont feel so bad with wanting to make more $$$$ :)

@ Stinson the house was a 4 potential 5 bedroom home, 2 story. 2 fullbaths 1 half bath. Partially Completed basement. This was a just an example of a deal I almost had in my hands. Just wanted to see if my approach with the numbers are correct or if I needed to adjust a little

Thanks Again

Hi Everyone,

I'm a newbie but I know when structuring a wholesale deal, sometimes the wrong numbers can kill the deal. This is my take on a proper attractive deal for end buyers. I need opinions from other experienced investors, is this formula correct?

Example:

Property Value: 260k
$260,000 x .65 = $169,000 .. (65% of actual market value)
Repairs: -$15,000

And also I would have to subtract my assignment fee and also allow room for any closing cost or fees a end buyers has to pay at closing

My fee between 3k-5k (depends on different factors)

So with that said I would offer between 140k - 145k this would include my fee

The extra few thousands I would allow for my end buyer to keep again to compensate for any fees at closings

All opinions are welcomed here !!

I'm sure many are going to bash me and say this is the reason wholesalers arent successful because they dont know their numbers. But thats why i'm here to ask first before I waste anyones time.

Thanks in advance

Yes !!! I'm having the same exact problem !! People say to go to REIA meetings and network but in reality people just dont want to help their competition. Even in person when talking with people i'm 27 but I look even younger so they look at me as if i'm a young college kid and never take me seriously when asking questions. I've done the same thing contact other wholesalers through email, facebook etc and I never receive a response. And for me I feel I should wait until I find an attorney or Title Company first because even if I connect a seller and buyer and lock up the deal, whats the use if I cant find someone to close the deal? The reason i'm going to try and get a recommendation from Cash Buyers is that hopefully since i'm only helping them to find deals and not in direct competition with their business they may be willing to help. But no worries no matter how hard it is we'll get there !!!

Hi Robert,

I'm having the same trouble here in Richmond,VA. I'm also a newbie. I've tried calling different Title Companies in my area but some of them have no clue what wholesaling is and they seem like they're not interested in finding out when I try to explain. I'm actually thinking about asking different end buyers if there is a certain Title Company they would like to use. That may be a good way for you to find one also. Good luck with your deals !!! Cant wait until I reach that point