All Forum Posts by: Josh Caldwell

All of your options will work but your goal is to get as much bang for your buck as you can with your 300k What that means to you is that you want to use as little of your money per deal as possible. How much leverage can you use? You are speaking of broad categories, when the fact is that individual deals are what matters, not categories of investment. You are looking for a maximum ROI. So start shopping. Your real answer might be a mix of the techniques above, but I suspect that you will find your greatest ROI in SFH. The best ROI you will ever find is in owner financed deals Get one of those to cash flow and your ROI is infinity, with the added benefit of not consuming any of your capital.

You only need an agent to do that on a listed property. With that being said, as an investor, you really shouldn't be looking at listed properties. We are deal hunters and there are no deals on the MLS. The MLS is market price. As a wholesaler, you want to source your deals directly from the seller.

I love your entire list. Feel free to ask me all of those questions. It will speed up the process. 

Yes, at it's very core, wholesaling is simply the act of buying something at price A and selling at price B with the understanding that B is a bigger number. There are a ton of permutations on that theme and techniques, but that is the core. 

I like to think of wholesaling as the act of getting paid for property that my marketing turned up, and I don't want.  There are a number of reasons that I might not want a perfectly good property. It might be too far away or it might be a rental when I am looking for a flip.  The point is that just because I dont want it doesnt mean that someone else wont pay more than me to get it.  

You NEED to get the property under contract before you even attempt o wholesale it. I also suggest that you be 100% honest with your sellers and tell them if you wont be the one to close on the deal. A simple version of that speech is "this one isn't for me, but let me ask you a question. If I can get you your price, do you care if it is me who closes on the property?  I expect to get paid, but not by you. I will charge the buyer as much money as I can, is that fair? do we have a deal? "  

At the advanced ends, you can offer funding to your buyers to make it easier for them to buy. 

that should help you get started, as long as you keep learning here on BP you will be fine. 

To your success

Josh

Yes, there are opportunities. Not so sure that you will find them on the MLS, that is literally the worst place to look. Not trying to knock realtors, but they are obligated to price a property at market price. I have interest in market price. I want a deal. They way to find a deal is to either source it yourself through your own marketing efforts or by networking with local wholesalers. You will find some other here on BP, there also FB groups dedicated to wholesalers in your area. I actually post on some CA ones. If you find a deal the funding becomes very easy. you just need to shop for the deal, and dont be afraid to turn down deal after deal. You want a Keeper of a deal. Don't settle for ok

Why choose, do both.  Wholesaling is simply the act of getting paid for deals that you don't want to keep   In your quest to find a good flip, you will 100% find deals that arent right for you. Just because they arent right for you, doesnt mean that someone else isnt super excited to have that same deal. This is all part of your marketing funnel.  Doing both will open up a new world of profit for you..  

Yes, keep looking around. Not everyone ignores the new flippers. It is the deal that matters. Even if you can't find a hard money lender, you can turn to private money, which is nothing more than offering a part of your deal to another local investor in exchange for the funds.  there is always a way to get the deal done. 

Great question. You avoid the banks. The banks care about your DTI ratio. Private lenders and sellers do not. You can either learn to raise capital in the investor world or you can learn to make creative offers that give your seller what they wanted. HINT, cash isnt always what they want. Some investors want cash flow. Offer them cash flow with tenant management and you have the core of a creative finance deal.

conventional is nice and most people start that way. If you want to scale, your mantra has to become preservation of capital. You want as little of YOUR money in this deal as possible.   That leaves two alternatives, private money or creative finance.  I like creative finance a lot better because I have zero limits on my expansion. You can make creative offers acceptable by giving the seller more than they are asking for in exchange for favorable terms.  

Yes, I have done it and it can be quite profitable. You need a willing seller, sounds like you have that.  You need to be able to do the rehab, sounds like you have that also. 

Now you need a joint venture agreement to define your relationship.  A local RE attorney can help you with that. 

He puts up the house, you do the rehb, and you split the profits at the end, simple enough.

The details require attention.  

You will NEED on option on the house to be able to force a sale incase he changes his mind after you fix it up. You will also need to take the loan in your name and be able to encumber the house with a mortgage.   If not NO LENDER will touch you. The good news is that part is pretty simple once you find the attorney. 

The best part on top of the lack of up front cash is that you dont have to compete to secure this deal, it is in your pocket. 

To your success

josh caldwell