All Forum Posts by: Nick C.

@Engelo Rumora

I've got an offer for you. You find me a deal, a contractor to fix it up, a lender to fund 100% of the project, and a free project manager, and I will give your company a #hashtag for my 6 Instagram followers. You can't beat that kind of exposure!

I don't know who needs to hear this today, but to be a successful wholesaler you need to think of yourself as a marketer, not a real estate investor.  

Wholesaling is a marketing job, it's not real estate investing. If you can market, and find motivated sellers, you have a decent chance of success. If you can't do that, it's hopeless. 

The good news is that if you make money wholesaling, you can then invest that money in RE, and at that point you become a RE investor. 

Unless it's a very poorly managed bank, there will be language in the contract preventing it from being assignable. There also may be a deed restriction preventing you from reselling for a period of time, but those are usually for short sales. 

A double close is you purchasing from the bank in an A-B transaction, then you simultaneously sell the property again in a B-C transaction. 

If you feel you need time for due diligence and an inspection period you shouldn't buy from a wholesaler. 

Get your feet wet with on market properties that you can buy from a realtor with an inspection period. Move as slow as you need to. Later when you have some experience under your belt and can move quicker, then you can then buy from wholesalers. 

I think you're giving up too much. You're paying for marketing, then you're also paying a finders fee for deals that you keep. 

You didn't mention any split between you and the wholesaler on deals that you pass on and the wholesaler sells. Do they keep 100% of the spread on those? 

You'd be better off paying for marketing and training a VA to answer the calls. Then you can handle the good leads.

The best way to learn wholesaling is to go work for a wholesaler. Learning it on your own and being successful is possible, but so is winning the lottery. 

We bought a lot of short sales around 2012-2015. In addition to the approval only being for the buyer name on the contract, most banks also put deed restrictions on property not allowing it to be resold for a period of time, generally 30 - 90 days. 

I have no knowledge of King Khan, but generally a guru's sketchiness increases as the nickname gets cheesier. 

PSA - bandit signs are not your secret weapon. 

I remember bandit signs were big during the foreclosure crisis. They've dried up with the foreclosures. I don't know if that's due more to ineffectiveness or more so that cities and municipalities have cracked down on people using them. 

In our area you get fined per sign. Years ago there were even sting operations of city employees pretending to be investors to catch the sign throwing offenders. So before littering an area with these, you should check your local laws and how strictly the laws are enforced. 

Don't get in the business of trying to predict the future. Interest rates may drop, but what if your market is flooded with houses from other sellers that were waiting for the same thing. There's no guarantee prices are going to go up, they could even come down. 

And if prices do go up, you're going to be paying more for that multi-family you want anyway. 

I'm not a big fan of waiting for something that may or may not happen. Too many other variables could change, not to mention black swan events, like pandemics. I know investors who have sat on the sidelines waiting for a market crash since around 2016. To me, that's just flushing 8 years down the toilet...