All Forum Posts by: Russell Ponce

As you know, wholesaling and landlording are opposite strategies. Not that you cant do both (check out podcast #37) but you need to decide what you are going to do. 

For me as a wholesaler, I would use the money to ramp up my marketing and cherry pick a deal to take down and flip myself. 

Maybe as a landlord you could buy a house free and clear and rent it out, the cash flow could be saved up to get another property and you keep building your empire.

All these strategies have risk and you could lose money so dive in and learn as much as you can. Wholesaling isnt that risky but it is hard.

I dont do rehabs but as far as price negotiation I think you want to get at least 2 to 1 on your money. If you think it will take an extra $10k then drop your offer $20k. 

Just be persistent with your marketing and as you bring people deals your network and credibility will grow. As this process gains momentum your opportunities for private financing will be there.

Sub 2 is definitely something to look into but this property is so old and so far under water not sure about this deal. Listen to Aaron in podcast #37 say you need equity AND motivation. 

How sweet it is to get that first one!

Are the comps as old as this property? I might use 65% tops on a property this old and maybe less but I dont know your area. And if you feel pretty good that rehab is $5-$10k then figure $15k. And you have the right idea being conservative with ARV, we want to price it to sell.

$65k*.65-$15k~$37k offer.

In my area short sale needs to be seasoned 90 days before it can be resold. Maybe there is a way around it but I dont know. Also, around here I believe you need a significant deposit and clear proof of funds. Maybe you can hand the deal over to an investor and collect a finders fee if his offer is accepted.

I think he just meant its a pretty complex deal for your first one. Do you have a mentor or a local person that can advise you? 

On the surface it sounds like a great opportunity, let us know how it goes!

Probably the easiest and most overrated aspect of Wholesaling is finding buyers. Not that it hurts to do some research to satisfy our curiosity but I would focus on getting leads and finding a deal, easy to find buyers at that point.

Agents would know of buyers, especially agents who specialize in REOs. Cash buyers are at auctions. If you put out bandit signs they will call you. Cash transactions are recorded in mls. Listsource will give you adresses of investor buyers (absentees). Hard money lenders will know buyers. Title company will know buyers. 

Good luck!

Thx Rob