All Forum Posts by: Shawn Clark

This is excellent advice. And even if it's a bad deal and none of them want to buy it, they still might have good advice for this one or in the future, and they can go on your future buyer list.

Wow. I can't imagine getting into a contract if I wasn't already prepared to settle myself if necessary. Did they not ask for proof of funds or anything? Or do they already know you are just going to assign it?

Funny. I'm sort of in a similar position, except I've had my license for over 3 years already. The agent business can take a long time to get going unless you have a huge sphere of influence (large groups, lot of connections, etc.) and/or you join a team that will give you lots of leads and/or you are a serious go getter and don't mind cold calling tons of people and door knocking and so forth.

I'm actually looking to wholesale and I already have my license. (I also have some rentals and have done a few rehab/flips.) So that might tell you something. Being an agent is NOT as easy at it might look. The work itself is easy but getting the business going can be tough, again, depending on how you approach it.

Are you using a property manager or self managing? If you are self managing then quantity (and quality) of units comes more into play. More to deal with. More risk of maintenance issues. And if you renovate yourself then you know what you are getting and have "instant" equity. I'll never buy someone else's rehab again. Too many unknowns.

Leverage cuts both ways. So watch that. Leverage is best in good times but worst in bad times. (And by "times" I mean for the property too, not just the market. I had 4 out of 6 turnover within a 6 month period and at one point 3 were vacant simultaneously. That was followed a year later by back to back sewer collapses at two of them.)

Summary: Scale in a way that let's you sleep at night and (hopefully) still reach your goals.

Why not add to this eternal thread. :)

I bought my first two rehabs (flips) from wholesalers back in the day (2003). The first guy was legit. The second guy was trying to screw me over with overly low rehab estimates. I knew his estimates were low, but I liked the house anyway. Luckily it was 2003 and by the time I got it back on the market in 2005 the market had gone up enough that I made $50,000 anyway. In fact, I made $50,000 on each of them. The first took 6 months part-time and the second was more like 12 months of work, but we got distracted with contract work, so it took longer.

I haven't bought any others from wholesalers since. The last one I was directly involved in came off the MLS. The profit was $22,000 on that one.

My advice is to never take the word of any wholesaler. Do your own due diligence. I just looked at one where they tried to say the comps were $200k and the rehab work was $35k. They were correct on the rehab estimate (if I did it myself) but the ARV comps for this exact house in this exact street were more like $120k. You have to be precise with comps because one or two streets over can make a huge difference sometimes.

Always look in person. Always knows the comps. Always do your own repair estimate. And always have $10,000 cushion somewhere in your numbers for unknowns.

Basically, you just need to communicate openly. Are you approaching them to buy with an option to list? Or just to buy? Or just to list? Be clear and open and always disclose that you are also an agent, even if you are not offering to list their property.

And no, your broker can't stop you from buying and selling property on your own unless you agree to that rule up front.

Luckily I work with a broker that is also an attorney and encourages us to do investment deals. He is also a hard money lender.

I am an agent and also about to start wholesaling. I also haven't read the whole thread yet.

First of all, they are NOT your clients unless they have signed an agreement to work with you as an agent.

There is no reason you can't buy and sell on your own as long as you disclose that you are an agent first. In fact, I plan on offering both services. Let me buy your property OR let me list it. Very different services. 

No need for showings.

No need for repairs.

Just to add to previous posts.

I actually sold one of my own through a wholesaler last year because he had a buyer in DC that I couldn't find on my own. And I'm an agent who has also done flips! A large buyer list is added value in itself. I was happy to get what I got and the buyer was happy to pay $10k more. Win-win.

Everything in my area seems to be investor carrot. Like 75% of the first page of Google for "sell house fast etc". But it sounds like LeadPropeller is also an excellent option. Thanks for the input. I'm loving BiggerPockets! Can't believe how long it took me to get on here.

 Sweet. I've had my license since 1988 but never bought anything. I'm partial to the Citation M2 myself. :)