All Forum Posts by: Kim Handelman

@Gerald Harris  It's people like you that make me believe I can do this! THANK YOU! I can't wait until I know enough to pay it forward the way you are! CHEERS!

This post has been very helpful but these comments are exactly why I'm afraid to pull the trigger and start. I've never done a deal but I have what I think is a great deal right now. It's a duplex. Hasn't been updated since it was built in 1950. With my untrained eye, It needs a kitchen and bath overhaul in both units (so 2 kitchens and 2 baths), all new floors except good hardwood in larger unit, a paint job and some yard work. I'm estimating about $35k. There are very few 2 unit properties in this town but it's a beach town so I know it will rent well. My realtor says ARV is $290K. I can get it for $180K. As a wholesaler I was hoping to get $15K out of it. Plus there are realtors involved so that's $11K. That leaves the rehabber with $84K to play with but I'm worried that I'm not seeing things and I'm going to piss people off on my buyers list. Does this sound viable?

@Kyle Civittolo, I didn't find it on MLS. It was sold last December so the info is on Zillow from that sale. I found it by driving around and the neighbor said people bought it to fix and flip and they couldn't come up with cash. It will be tight for a wholsale deal if I can't offer less than asking. Thanks for the info. There's so much to learn!

Ok, I asked a question on this yesterday and didn't get any replies. Hopefully someone will take pity on me today. I have a good looking wholesale deal that I'd love to get under contract but the property is under "HUD guidelines 24 CFR 206.125" I'm reading conflicting information. It fairly clear that you cannot buy the property for less than 5% of the assessed value but I also read that it's either 5% under assessed value or for the amount that is owed on the property. Whichever is less. Does anyone know? Also, I didn't see anything about not being able to assign the contract to another buyer. Does anyone know if there are any restrictions on this?

Hi All, I found a good wholesale deal but the statement says "Is subject to HUD guidelines 24 CFR 206.125". What does this mean? Is this a house that can be wholesaled to a flipper?

Hi Everyone,

I'm putting together my business plan for wholesaling and trying to figure out what I will need for operating expenses and here's what I've got so far.

$1,000 for attorney fees (I figure I need to have them look over all contracts and documents that I'm going to use).

--$2,000 for marketing (I know it's lean but the idea is to invest money from my deals back into marketing).

--$500 to pay some contractors to give me estimates on houses I want to put under contract. I figure I'll pay him for his time (how much do you think is a fair fee per house?) and pay close attention so that I can eventually do it myself.

--$500 for education - seminars, books etc. (Thank you Josh for making BP FREE!)

--$200 for deposits on the first few houses I put under contract.

--$300 Networking. Take some existing wholesalers out to lunch to pick their brains. REIA membership etc.

Because I'm wholesaling I don't have to pay for appraisals or inspections right? Is this it?  What am I missing? I can't afford to get broadsided with some obvious thing that I should have known about. Thanks so much, Kim

@Darrell Shepherd THanks so much. Yes, I get the smelling my newbieness a mile away. I also live in a chic area so things here are pretty inflated. I'm hoping my REIA meeting will help as they'll know the market. This is all very sound advice and really appreciated! Cheers!

Thanks so much guys, looks like to be effective I have to learn the flipping world even though I'm not going to flip which is fine. I'm going to my REIA meeting on Monday and have already networked with some local flippers so hopefully one will take me under his wing and let me pick his brain. I'll get J Scotts book as well.

 Great idea. I was hesitant to ask but you make a great point that it is in their best interest to teach me because they will benefit in the future. That makes it much easier for me to feel good about asking for their time. Thanks so much.

Hey guys,

I have a lead on a property to wholesale (I'm brand new to wholesaling) I think I can get it at 70% of ARV but am worried that the work needed -- I don't know if it's ever been remodeled and has some water stains in the ceiling -- will be too much for a flipper to take on for the profit margin. How do wholesalers accurately assess rehab costs?