All Forum Posts by: William Johnson

 Thank you Nick for the advice, at the time we don't have enormous amounts of capital as it is tied up in properties. We do however have a lot of legal procedures and templates that may take three to twelve months to put together. We were thinking of something short term with the lawyer limited by time.

Welcome Dean, you are at the right place to learn.

We are looking into forming a partnership with a lawyer instead of having to pay each time we need a new form or service.  We are thinking of a short term joint venture that would be renewable based on a unanimous vote.

Anybody have experience with this as well as an idea of what the percentage that we should offer her of our profit?

Yes wholesaling is entirely possible to learn however I would highly recommend starting off as an agent at first as part of your journey to become a successful wholesaler. 

The biggest myth of wholesaling and all the guru marketing that surrounds it is that you will make money quickly at it. You will not quickly make money at it. It is a highly specialized career that will take just as long or longer than most apprenticeships for trades will take. On top of that there are very few credible teachers who will teach you without wanting a ridiculous amount of money. I am currently doing my agents course and it will cost me less than a thousand dollars.  I recommend you do the same and learn wholesaling at the same time.  You will get into making money much more quickly as an agent than you will as a wholesaler.  I am very good at wholesaling but it took me a lot of blood, sweat and tears to get to where I am now and, not many people have the level of single mindedness and perseverance to make it.

Wholesaling, or the concept that it represents can be done in a multitude of ways.  Selling a contract is the most commonly referred to way but, if it can be proven that you entered into a contract to purchase a property with the sole intention of selling your rights to that contract without ever having the intention of purchasing the property in the first place than you have entered into that contract in bad faith and that is illegal.  You need to make sure that you have people who are willing to be your silent financing partner on these offers so that you can be sure to have the purchasing power to buy these properties if you should need to do so and thus enter into a promise to purchase contract with good faith.

That is awesome Jerryll!

That is one of the most motivating things to me is when the naysayers inadvertently try to discourage me.  They don't realize how much that it makes them sound like a one percenter, that whole attitude of "Nobody is to be trusted unless I have known them for years or they are putting money in, I will only trust you if you don't need my money but ask me to finance you anyways".

Good on you I have not shared this on Bigger Pockets but I have actually wholesaled 2 properties over the summer here in Montreal, Canada for a total of 26k assignment fees, another one worth 15k is waiting on some title issues to be cleared and I also just closed on two no money down sub 2 deals that will be make between 80 and 200k profit once they are resold.

I have the aforementioned naysayers telling me that that sort of thing couldn't be done to thank for giving me the motivation to prove them wrong and succeed :)

 This post should be part of getting started in real estate, one of those old texts should be added as a must read book.  I am taking the agent course after having been learning by doing and I cannot imagine all of the time and hardships that that would have saved me.  Thank you for posting here.

 I did take that advice to stay action right away and I don't regret it. What ends up happening over time is that you learn real estate really well before you become experienced and competent enough to be able to wholesale. I do think that it is much more easy to invest in a real estate agent course and learn the industry seeking houses and then moving into flipping and wholesaling.  It took me close to seven years to get to a high level of competence and I think I would have cut that time in half of I worked have started that way.

By the way I find it easier to appraise the as is value and offer 70 percent of that which is generally pretty close to seventy percent minutes renovations anyways. This way I automatically have two flip based exit strategies immediately available.

@Ann Bellamy 

Thank you for taking the time out to respond.  Very valuable advice and I appreciate it.  Honestly wholesaling is great but does not represent the challenge for me that it used to be.  When I have a great deal that I have removed all of my conditions on it then it is because I know that I can wholesale it very easily.  Why can I have somebody buy it off of me very easily for a wholesale fee is because it is a great deal that represents an acceptable risk to the investor because there is a minimum of 33 percent gross return on cash investment built into the price.

The fact of the matter is that I am very, very good at finding, appraising, negotiating and closing deals.  I have closed every deal that I have gone into and I will eventually achieve what I am looking to because I simply will never give up on anything until I get it.  I just thought that I would present it to the people on Bigger Pockets who are further along down the road and are capable of telling me how to achieve what I am looking to do.  My business model is dependant upon being able to use my money that I make to pay salaries, marketing and overhead and having people interested in making a return on their investment lining up to make a competitive return on their money without needing me to put skin in the game every deal (other than the skin I am implicitly putting into the game through all of the costs to bring the deals in through marketing, manpower, overhead etc...).  Having to put skin into the game for every deal is a gigantic bottleneck that does not allow for a scaleable business model.

I have multiple associates who have what I am looking for but they seem to have fallen onto these people almost by accident.  I am looking for a repeatable process to be able to recruit, verify, persuade and add these people as investors on a regular basis.  This thread was created as a proactive way to both solve a problem that has not stopped me from closing transactions (but is still a puzzle to solve). It will eventually in the very foreseeable future become a greater problem when the deals come in faster than the new money to finance them.  I could still wholesale all of these deals but it would not maximize the profit like I would like to do.

@Ann Bellamy @Jeff S.  I think I need to ask a better question to get the answer I am looking for...

If somebody had nothing to their name, not one cent of equity but, they had a deal under contract that you knew they could wholesale no problem and they told you that they wanted to buy and flip it.  Is their any way that you could feel comfortable financing this property, I am not just talking about securing your financing against the property and having to repossess it if they person screws up, any way of financing it. An example I have heard of is a partnership agreement where the non financing person only gets a percentage and they have specific performance clauses that they need to fulfill in the partnership agreement in order to hold their shares in the partnership.