All Forum Posts by: Nick C.

Yes that's how that strategy works. How many times you can repeat the process will depend on the bank you use.

To piggyback off of what John said, you may have better luck using hard money and then refinancing out of it. You can refinance out of it before you own it free and clear as long as you're buying right and have equity. That's the strategy we use. 

This doesn't exactly answer your question, but have you considered offering a flat fee to a realtor to list it on the MLS for you with a note to contact owner for all questions and offers? I guess in that case you'd still have to pay a % to the cooperating agent, but you'll get much more exposure and it'll sell quicker for a little more I would think.

That would be the honest thing to do, although I believe most wholesalers would tell you that's a bad idea. 

Why not partner with someone who has the means to close on the deal so you don't lose one again? If it's truly 60% of the ARV it should fly off the shelf on craigslist or the MLS.

To answer your question, the problem is buyers are inundated with guys and gals claiming to be wholesalers who don't have the ability to get deals, and they have become jaded. Trying to build rapport before you have a deal is going to be an uphill battle. If you do get someone eager to meet you or be added to your buyer's list claiming to be a cash buyer, chances are they're another wholesaler. The only way to build rapport with a true cash buyer is to have a deal to sell, that's the only thing that separates you from the masses. 

I hate to say it but wholesaling is becoming a dirty profession, mostly because there are soooo many bad ones and so few good ones. 

That's one route, although contractors generally will want the job if you use them for estimates. Your best bet is to get educated on repairs costs yourself. 

Are you paying with cash? If you're submitting financing offers you will be at a huge disadvantage. Up the EMD, skip the inspection period, close quickly.

Getting deals isn't easy, it's going to take perseverance. Luckily it's a marathon not a sprint. 

I guess the missing piece in this equation is how much rehab does it need? I wouldn't do anything until you get that number, it makes a big difference on whether or not this is a good deal. 

If you're an agent could you not just collect a buyer paid commission? That's all an assignment fee is, and it's a lot easier, less paperwork, and extremely legal. 

If you don't want the buyer to know how much you're making on the deal you'll need to close on it first. If you don't have the funds find a transactional funder, they usually charge around 1%. You and the end buyer close on the property on the same day. 

Find a good deal and buy it. Make a bunch of mistakes and learn from them. Stick with it and don't quit before you come to realize the fruits of your sacrifices.

If it's a traditional lender (bank) the property will have to be livable. They don't loan on fixer uppers.

It can be done using hard money with 20% down. You may have to look around to find one that will do 20% down.