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Author Topic: A few questions about wholesaling  (Read 14797 times)

Offline Randoskie

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Re: A few questions about wholesaling
« Reply #15 on: April 22, 2016, 12:29:47 am »
Al these questions and now I'm confused, I thought I had the logistics down, now I'm starting to question my training, my motives and even my purpose in life, why was I born, what wud I be doing now if I hadn't been born, if I was born in the future what wud I be doing till then.
If I ask insane questions will I go insane? If I get any more questions I will go insane.
I have answered ever one of this guy's questions, I sent him the most simplistic book on the planet.
I wonder if there is a serious problem with the Universe, Is black matter affecting his common sense?

I have a buddy with ADD, he's smart, but you give him a simple job to do, between smoke breaks, phone calls and crazy questions I wud have to go help him finish the job. I learned a long time ago not to pay him by the hour.
He can turn the easiest job into a cluster flub, and it's never his fault.
Is there anybody out there that can put up with this guys endless questions?
PLEASE HELP



Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #16 on: April 22, 2016, 02:53:17 pm »
Al these questions and now I'm confused, I thought I had the logistics down, now I'm starting to question my training, my motives and even my purpose in life, why was I born, what wud I be doing now if I hadn't been born, if I was born in the future what wud I be doing till then.
If I ask insane questions will I go insane? If I get any more questions I will go insane.
I have answered ever one of this guy's questions, I sent him the most simplistic book on the planet.
I wonder if there is a serious problem with the Universe, Is black matter affecting his common sense?

I have a buddy with ADD, he's smart, but you give him a simple job to do, between smoke breaks, phone calls and crazy questions I wud have to go help him finish the job. I learned a long time ago not to pay him by the hour.
He can turn the easiest job into a cluster flub, and it's never his fault.
Is there anybody out there that can put up with this guys endless questions?
PLEASE HELP




Well at this point, I have to wait to hear back from the home owners to see if they're even interested in selling the house.

All the "We Buy Houses," people I've called have said they would want to look at it themselves to estimate their own repair cost.

And I'm still pretty sure I'm lying to the seller by telling them I have to back out pending inspection when in fact I would be backing out if I don't find a buyer.

I think you said that your contract has an escape clause that says if you don't find a buyer within 21 days, but it also says that I shouldn't notify the seller that I am reselling the house. These two things can't exist at the same time.

Offering someone $50,000 for their house and then getting stuck having to pay for it when I don't have the cash to do so is no laughing matter.

And what about the fact that I don't know how to look at a roof and tell if it needs to be replaced. Or that I don't know how to identify structural problems with masonry walls and I would have no idea if it is good or if it needs to be torn down completely. Or I don't know how to identify outdated and illegal polybutylene plumbing to know if it needs to be completely replaced.

You're making this sound easier than it is, but I will get there.

Am I correct in assuming that the Zestimate is the after repair value and that's what accounts for the discrepancy between the $70,000 Zestimate and the $28,000 just market value from the property appraiser?

You say you've made over $100,000/year doing this and I believe you, but I think you're greatly exaggerating when you say it's as easy as sitting around watching Judge Judy. But then again, you've been doing this for years.

Do your buyers inspect the house or do they just "take your word for it," for the repair costs?
« Last Edit: April 22, 2016, 03:31:54 pm by Redstar1324 »

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #17 on: April 22, 2016, 07:28:13 pm »
What about back taxes? Do I have to check for that?

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #18 on: April 22, 2016, 07:41:47 pm »
Okay I just printed out 100 fliers that say "I am interested in buying your house cash,"...

I won't post again until I have given them all out....

But the one main thing that I still don't get is the escape clause... you're saying that I am not supposed to tell the sellers that I am planning to resell the house... the escape clause from the contract in the book says "contingent upon inspection,"....

I can't make an intelligent offer on the house until I perform my own completely amateur and most like incompetent inspection... if this house had mold issues all throughout, I probably would not notice and definitely wouldn't notice if I didn't rip up the walls, which I would not be allowed to do.... therefore, how can I calculate the repair costs? and also, what is my escape once my "inspection" is done... and the only real reason I would want to escape is that I can't find a buyer with a certain number of days....

The buyer I talked to today told me that he needs to see the house personally.... and he would do his own calculation of repair costs...

These are not insignificant questions.... this is important stuff...

If I sign a contract saying I will pay someone $50,000 for their house and then have no escape.... what am I going to do seeing as I don't have $50,000.

I believe it can be done since you say you have done it.... but you can these are COMMON SENSE questions that I'm seeking answers to...

________________________________________________________________________________________________________

And I can foresee the future once I get a call back from one of these potential sellers.... I will say "sure, I'll come check out the house,".....

Does it need a new roof? Maybe. I can't tell by looking at it, but the flipper I will try to sell to will definitely know....
Is the plumbing outdated? I don't know.
Does the electrical work? I can probably manage that one.
Are there major structural issues with the walls? Probably. But are they so bad that they will need to be a complete tear down? I wouldn't be able to tell you...hence why I am not a competent home inspector YET....

So according to the formula ARV * .7 - repair costs - $5,000.... the answer is.... I have no idea.....

Then, I will call a buyer and he will assume that I already own the house, which if all went well I would have under contract that I would HOPE that that escape clause actually means something even though I already did my inspection and gave it my okay....

I can't know what price to offer before I do my "inspection," and the contract says "contingent upon inspection," meaning that that escape clause is of no use....

I could add my own escape clause that says "this contract is void if I don't resell it within 21 days," but that is exactly what I was told not to do in the book....

These are very good questions... do you know the answer to them?

If I was going to jump off a cliff with a parachute.... I would make sure I knew everything about how to parachute worked... include all backup plans, etc.

__________________________________________________________________________________________________

And even if I just take the shortcut and use the per square footage estimate of estimating repair cost... that still leaves me with the problem that that escape clause makes no sense..... you acknowledge that, right?

___________________________________________________________________________________

That being said, I can buy a 2005 Lamborghini Murcielago and paint it burnt orange or possibly wrap it in gold chrome for about $2,000/month including loan and insurance payments...... and that is easily made if I can do one successful wholesale deal per month... I already make everything I need managing the RV park.... so the rest is just spending money....
« Last Edit: April 22, 2016, 07:56:57 pm by Redstar1324 »

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #19 on: April 22, 2016, 08:35:09 pm »
Nevermind, I found the answer on BiggerPockets.... I need to include a clause that says...

"This contract is contingent upon the Buyer obtaining financing by (a certain date)"....

The contract was wrong, not me....

Now comes the problem of turning myself into a competent home inspector..... I should be able to do that in a short time.... they even offer courses for under $500.... but I think I can just do it myself by looking online...

Offline Randoskie

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Re: A few questions about wholesaling
« Reply #20 on: April 22, 2016, 11:38:09 pm »
Why oh why do I torture mysef reading your posts and trying to answer your endless  elementary questions?
First of all never say in your contract subject to financing, many of your sellers are distressed and they specifically want cash buyers because they perceive it to be the fastest way to get their house sold, and it usually is. I am a CASH buyer... Repeat that.... Wholesalers don't sell to people getting financing usually. Unless they got private funds or hard money.
Any why the hell do you need to inspect the houses? My buyers have never asked how is the plumbing, electrical roof etc. I sometimes ask the homeowners how is the roof just to make conversation and get them talking, but I don't care if the roof is bad, in fact I prefer it, I can get a better lower price., I have never inspected any of the houses I've sold. If you want to be the king of anal retentive activities, your just going to be wasting your time while I come in behind you and scoop up your deal while your asking a bunch of idiot questions that don't matter.
Well, they might matter to the buyer, but his job is to inspect the frikin house and decide if he wants it, if he don't want it then that's your inspection clause working for you, I cant sell it cuz my partner don't want it cuz he blahblah blah.
So what if the house has tax liens, I've flipped many that had code violations and tax liens, Its found out in escrow, the seller pays those, unless there are too many and that cud kill the deal, which has happened. Why worry about crap that may never happen?
I don't tell sellers that i'm resealing their house, I tell them my partners and I are buying it. your partner is whomever you find that wants to buy it ah ah ah.
First of all keep you mouth shut when you talk to sellers. If your quiet the sellers will reveal a multitude of problems with the house and give a good indication of their motivation.
Of course your buyers want to see the house, so they can do their inspections and calculate repair cost and see if they want to buy the damn thing.
And the insanity continues. Wholesaling is the easiest job on the planet.

Find a distressed house.
Contact owner
evaluate the deal and make offer.
Get it on contract.
Call buyers, let them look at it (inspect it?
Negotiate with buyer and have them sign the Assignment of contract.
Let buyer start escrow.
Wait for it to close and go pick up your check.

How can you turn this simple process into such a major cluster fluk????
Get your 10 year old brother to help you, cuz this job is so simple he cud do it.
 Dude you gotta get your head out of your patutie and use some common sense.

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #21 on: April 23, 2016, 05:28:18 pm »
Well, they might matter to the buyer, but his job is to inspect the frikin house and decide if he wants it, if he don't want it then that's your inspection clause working for you, I cant sell it cuz my partner don't want it cuz he blahblah blah.

That explained it.

Thanks.

By the way, common sense = you make over $100,000/year but live in a trailer park? I make much less and have my own house.

But that's neither here nor there....
« Last Edit: April 23, 2016, 05:31:14 pm by Redstar1324 »

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #22 on: April 23, 2016, 05:34:05 pm »
Here's my motivation to make just an extra $2,000/month....

https://youtu.be/7Dqgr0wNyPo

I will be good at this because I am not scared of the ghetto and I am SO GOOD at harassing people.....

Lol.

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #23 on: April 23, 2016, 05:53:52 pm »
Would I ask Peggy Ann any questions? Sure I would....

Peggy Ann....

Are you a drug addict?
How often do you drink alcohol?
Do you have any children? How did that go? Where are they now?
What's the square root of 169?
What's the capital of Minnesota?
Are you on any psychiatric medication?
When was the last time you did any drug, including marijuana?
How many hours of television do you watch per week?
Where do you work?
How long have you been there?
What are your financial resources?
Are your parents rich?
Are you on birth control?
If you were to have a child (or another child) and you do in fact currently drink alcohol, would you stop drinking alcohol to raise the child?
What do you think about prenuptial agreements?
Have you ever prostituted yourself?
Do you have any STDs? Would you be willing to furnish proof of this?
What was your longest relationship? What happened? Do you still talk to him? Who supported who financially?

Hahaha....

Okay I'll let you know how it goes....

Thanks for cluing me in to this very profitable venture. I foresee myself doing this for a very long time.

There are people who would kill to make this kind of money.
« Last Edit: April 23, 2016, 06:04:30 pm by Redstar1324 »

Offline Randoskie

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Re: A few questions about wholesaling
« Reply #24 on: April 23, 2016, 08:26:55 pm »
I hope you get it, all these questions are torture.
maybe I shouldn't of used the Peggy Ann analogy, your probably more of a Shameka Tyrone type.
I bet I have a nicer crib than you. And it's not in the Trailer park.
I also have a gorgeous new home on 5 Acres on a tropical Island where I go every year for 4-6 months.
My intention is to help you along with a little bit of ridicule so you can begin to use some common sense.
If you ever get it together & do some profitable deals I'll take you to the island with me.
Imagine this. Gorgeous young long hair brown skinned girls that love American men. The County is impoverished and of course they luv the American dollar. White sand beaches, warm ocean waters with hundreds of feet of visibility. I'm inland some and I got the jungle with the clear streams and water falls within walking distance from my house.
I just slammed a few good deals and I'm thinking bout taking another 4-6 month vacation very soon.
I have a few deals in escrow, maybe I shud wait for them to close.
But Redstar, I hope you can get in gear but I'm having serious doubts about you.
Prove me wrong.
Rando

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #25 on: April 24, 2016, 09:52:22 am »
I hope you get it, all these questions are torture.
maybe I shouldn't of used the Peggy Ann analogy, your probably more of a Shameka Tyrone type.
I bet I have a nicer crib than you. And it's not in the Trailer park.
I also have a gorgeous new home on 5 Acres on a tropical Island where I go every year for 4-6 months.
My intention is to help you along with a little bit of ridicule so you can begin to use some common sense.
If you ever get it together & do some profitable deals I'll take you to the island with me.
Imagine this. Gorgeous young long hair brown skinned girls that love American men. The County is impoverished and of course they luv the American dollar. White sand beaches, warm ocean waters with hundreds of feet of visibility. I'm inland some and I got the jungle with the clear streams and water falls within walking distance from my house.
I just slammed a few good deals and I'm thinking bout taking another 4-6 month vacation very soon.
I have a few deals in escrow, maybe I shud wait for them to close.
But Redstar, I hope you can get in gear but I'm having serious doubts about you.
Prove me wrong.
Rando


I'm not a Shameeka Tyrone type, more of a Maria Rodriquez type...

But ANYWAY... I'll go out and find some houses...

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #26 on: April 24, 2016, 10:16:22 pm »
Back to reality, and the purpose of this thread...

I went out driving in some underprivileged parts of town... I found a few houses by seeing what the exterior looked like... But it occurred to me that I am probably driving by tons of houses with rehab potential and missing them due to the fact that they haven't invented x-ray vision...

So I looked on Craigslist and searched for the word "handyman special," and got about 500 listings that I'm in the process of contacting...

Have yet to hear back, but I believe that's a lot of progress for one day...

Offline Randoskie

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Re: A few questions about wholesaling
« Reply #27 on: April 25, 2016, 12:51:19 am »
Wow, I'm impressed. But now contacting 500 sellers on Craig's List can take some time and work. Most people would get discouraged after contacting 20, But can you imagine taking a week or 2 to contact these people, evaluate their properties and make offers. I can guess there wud be several or maybe dozens of deals in that batch. But that's a lot of work. What if you made 10 or 20 Grand and it took 6 weeks to get paid? Next time you wud get Maria and Lupe to make all the calls for you. While you concentrated on negotiating and closing the deals, soon you be writing success stories.
I like using the internet to make money. You will too. 

Offline Redstar1324

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Re: A few questions about wholesaling
« Reply #28 on: April 25, 2016, 09:40:23 pm »
Another day of driving.... I didn't have all that much time (I have other things to do).... I found one house that I was sure was a good candidate.... it was abandoned, the floor inside was all torn up, high grass, spider webs.... looks like no one has been in there for years...

I looked it up on the property appraiser and found that it was appraised at $180,000 because the land underneath is timberland appraised at $160,000..... I don't think that one would work....

But it also occurred to me to hire bird dogs. I posted an ad on Craigslist seeking bird dogs and offering $200/house.... I got three responses within a few hours and they all seemed very motivated....

I told my bird dogs that I'm a flipper (rehabber) instead of a wholesaler because I don't want them to think they could do it themselves and take the business from me.... I don't know if that matters or if it was important at all.....

I also ordered a book about wholesaling that was mentioned in another thread....

This is going to work. No more games. All business and lots of it.

I also noticed that when I contacted a lot of those houses that I found by searching Craigslist for "handyman special," that they were wholesalers trying to sell their house, but they had fancy names like "______ Capital Group.".....

I think I will do this. I will form an LLC and call it "(something) capital group"...... The only thing is that corporations/LLC's are taxed at a higher rate than individuals.... so I'm not entirely sure on this.... but I'm getting ahead of myself... I need to work on getting that first deal....
« Last Edit: April 25, 2016, 10:04:05 pm by Redstar1324 »

 




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