All Forum Posts by: Nick C.

Wholesalers by definition should have an accepted Offer to Purchase, since that's what they're offering for sale, the contract. Without an accepted Offer to Purchase there's nothing to wholesale. 

Wholesalers should be marketing to find distressed sellers, not savvy investors. Getting a lease should be easy. 

There's only one question to ask - can you find good deals??

If the answer is yes you should work with them. True 95% of them don't know what they're doing, but who cares? You shouldn't be relying on the wholesaler for anything other than the address (and sometimes they screw that up). You should be pulling your own comps and coming up with your own repair estimate. If you're relying on the wholesaler for that, you're playing with fire. 

Who cares if it's their 1st deal or their 100th. If it's a good deal, it's a good deal. If they're incompetent help them through the process. Do that and the next time they get a good deal guess who they're going to call. If they're new and don't know what they're doing 9 times out of 10 the house will be grossly over priced, but also it could be underpriced. Even better for you!

My guess is no matter what they answer to your questions 99% of the houses you're going to get have no hope of being a deal. The biggest problem with wholesalers is the aforementioned low bar of entry and the gurus pushing it on people who are unhappy with their situation like it's some kind of gateway to easy riches. It's just a job, only it requires more work and stress for very little pay for a very long time. 

Why would tenants change anything? You wholesale it like you would anything else. The only difference is your potential buyers will probably want copies of the leases or tenant estoppel letters.  

Or was this a clever sales pitch? 

If you send this email out I don't think you will get a response. It's not that easy getting $100k from someone. It's going to have to be a conversation with each individual, explain what you do, the value you bring, and why you're a safe bet to not lose their money. Anyone who has money also carries the fear of losing it. You're going to have to overcome that with solid plans, track record, exit strategies, etc. This email explains what you're looking for, but not necessarily what they would be looking for. 

From our experience it is extremely rare for a seller to take a loss. In fact I would think most investors market to sellers with equity, and if not then they should be. They sell for many reasons but taking a loss typically is not one of them. If they're going to lose money, my guess is they aren't very motivated. 

Concur with above. If you're banking on future appreciation that sounds more like speculating than investing. Vacant dwelling policies are more expensive. $15k below market value isn't a lot of wiggle room. If there's even a small hiccup in the market you will be lucky to break even, but will probably lose money after expenses. Worst case scenario the condo hits you with an assessment, the market tanks, and you lose many tens of thousands of dollars. Too risky for very little upside. 

The numbers seem sound. 29k is pretty cheap, how's the neighborhood? Is there a lot of deferred maintenance that's going to come up in the coming years (old plumbing, electric, roof, termite damage, etc) that needs to be accounted for? 

If they're charging first month tenant placement and 10% of rent then they should be handling everything enabling you to be 100% hands off. Unless they're a bad property manager, in which case you should can them anyway. 

I've never heard of a title company turn away business. Either the ones you spoke to were weak title companies or maybe you said something that spooked them. 

Either way, try Pineywoods Title in downtown Tampa, they will understand any transaction you throw at them.  

My thought is a birddog SHOULD get as many leads as possible since they only get paid when a deal closes. The more leads they bring the better chance they have of getting paid. 

However it varies depending on the motivation of the individual. And since birddogs are free I don't think it would be beneficial to hold them to a benchmark. Just find more of them!