All Forum Posts by: Ryan Webber

The main component in any wholesale flip is price. You have to buy it cheap enough that you can sell to another investor and they can still get a good deal.

Now what is cheap enough? Depends on your market. In my market I usually buy houses for 60-70% of ARV minus repairs. Depending on the area of town and the amount of repairs, I know I can wholesale them to another investor for 70-90% of ARV minus repairs.

I have always bought a potential wholesale flip from two perspectives (now three). First off thinking how much I could flip it for and sell it within 30 days from my closing and make my minimum wholesale profit. Second, with the worst case scenario that I have to rehab it myself and still can make my minimum rehab profit. And now I am actually adding in a third with what I could carry the note for. It has to hit all two (three now) or I don't buy it.

Some people use them interchangeably. I am a wholesaler and "flipping" to me is when I either assign or double close a property or even if I sell it without touching it in 30 days from closing. Rehab means I or someone else has to work on it to sell it.

Resmith, "find the right deal" and "buy low, sell high" is some of the best advice I've ever heard. It's probably the #1 mistake that newbies make, so maybe the course isn't so bad after all. I've personally never read it. The only guru stuff I've ever interacted with is Russ Whitney's Wholesaling Course. An associate of mine offered me a free ticket, and I went. Jimmy Reed of Fort Worth was the teacher, and I thought it was an excellent course. I was already pretty experienced in wholesaling, but I remember thinking that if I was just getting started and took that course, I could make very good money just doing what they told me to do.

I have several.
[u]
Edgar Cayce's Story of Jesus[/u] by I forgot who- changed me from an atheist to a believer

Conversations With God by Neale Donald Walsch - opened the roof of my mind and my spirit

The Greatest Salesman in the World by Og Mandido - gave me my first glimpse into the principles of success

Rich Dad, Poor Dad by Robert Kiyosaki - directed me to real estate

I don't think either way is better. I would start looking through both avenues. Determine what your numbers are and then start looking everywhere for those numbers. Wholesalers can be a great avenue to find good deals, but don't trust someone else to do your homework. It's your money you will be investing. Being a wholesaler myself and knowing others let me say this, not all "wholesale" deals are good deals.

I have a fourplex, an 8 unit, an 11 unit, and a 16 unit for sale in Amarillo, Texas. All of them cash flow and have a cap rate of 11 or better. Call me if you would like more info.

806-336-7295

Loopnet is a good place to start looking for land or anything commercial. I'm not sure why I didn't post that earlier. Its a commercial agent's MLS. If you're a beginning investor, I wouldn't recommend speculative land investments. You can sit on land for years and paying taxes can add up. Now if you have a bunch of capital to work with and don't mind playing the waiting game then it might be a good idea. You need to be confident that the growth will continue, and of course you need to research and make sure you are buying it right and have allowed for long holding times.

I'm not familiar with the Carlten Sheets material or many guru's materials at all, but I've wholesaled over 60 houses this year and I've put earnest money down on maybe 3 of them. Now again, I don't know the laws for each state, but earnest money is not required for a valid contract in Texas. Again, I only give earnest money with a property listed with a real estate agent (and that's because a good real estate agent will require it).

Now let me say this, I always require earnest money when I SELL a property. I would agree with noobdog that it is in the best interest of any seller to require earnest money. But in dealing with motivated sellers and distressed property, people aren't as level headed as maybe they should be. Obviously they're selling their property at a significant discount so their rational strategic mental processing might not be the strongest at that point in their life, but I wouldn't say they're stupid, they are just motivated. I've only been asked about earnest money from a non-represented seller maybe twice.

Now noobdog, in reference to "land contracts", I'm guessing you're referring to a contract for deed, which in Texas is not illegal but new legislation has opened one up to extreme liability for selling a property through any type of executory contract, where the buyer doesn't receive title immediately. Lease options also fall under that statute and are pretty much dead in Texas. I do all of my deals with a standard deed of trust.

Jluci, I would personally recommend putting the smallest amount of your own money into any wholesale deal with few exceptions. You need to minimize your risk, especially starting out. I would check with a local real estate agent or attorney to see if your state requires earnest money and then go from there. If your state does require consideration to be a valid contract then I would follow prk's advice and put $10 or less as earnest money. If it doesn't require it, I wouldn't put a dime unless you have to.

Does anyone have any recommendations for a smaller cash-out refinance on a couple apartment buildings? It would be a $700,000 loan.

Depends. Depends. Depends. Everything depends on the lender. Most don't require downpayment if the Loan To Value is low enough. Most will give you money for rehab if the LTV is low enough. Some will check your credit, and some won't care about your credit if the LTV is low enough.