Many people are telling me that wholesaling houses now is a waste of time and that most investors have turned their focus to rehabbing houses. Is this true ? Is it still possible to wholesale or should I shift my strategy ? I am on the east coast where homes can cost more than other parts of the country. Are there other parts of the country where wholesaling is still profitable ? Or are they right- is wholesaling dead ?
Somebody forgot to tell me that wholesaling was dead.
I’ve made over 60 Grand flipping my deals to rehabbers in the last few months.
And I have a half dozen other deals in escrow and starting escrow, hoping to do 100K b4 the end of the year.
I send out thousands of yellow letters to absentee owners and recruit bird dogs and just made 8K because of a yard sign I had in my front yard. I’ve even partnered with other wholesalers to do some deals.
If wholesaling is dead maybe I shud stop and start rehabbing, but wait, I will still need wholesalers to buy my properties from. Don’t tell them the bad news.
I’m a certifiable smart ass, but wholesaling is thriving here in central California.
I predict it’s only getting better too. Millions of older homes needing repairs and older folks needing to sell fast for cash. I’ve started wholesaling nicer houses also.
Find distressed sellers or/and distressed properties and you have the recipe for wholesaling in any area.
Let’s make some MONEY…
Rando
I am just getting started wholesaling and came across your your question and I like the answer Randoskie sent you. I feel better about doing this now. Can u help with some details?
Like do I need an LLC for each home I wholesale in the state it’s in? And if I buy from homeowner, what form do I need? Thank you for any info and your time…
I’ve never used an LLC to wholesale houses. I use a simple 2 page purchase and sales contract I got out of the book “RE Profits on Steroids” by Jackie Lange. I think its on Amazon for 10 or 15 buks. It also has the Assignment of Contract you will need.
I was contacted by the author to do a live pod cast because she heard from another of her students of my success using her book. It was a fun experience and lasted about an hour and even had some questions from some of the listeners.
I’m sure she cud have found a more experienced person cuz I had only done about 25 deals at that point.
I’ve bought a bunch of courses and books on wholesaling, but everything you need to know is in Jackie’s book.
Let’s make some Money and have fun doing it.
Rando
LLC’s are generally setup to protect your personal assets from a lawsuit generated off an investment property. Wholesalers do not hold properties so there is no reason that you would need a LLC except… There are cases when you cannot assign the contract or do a double close. In those cases, you setup a LLC between you and the end buyer and put the property in the LLC. After closing, you “buy out” of the LLC and the compensation is your profit margin.
I’m trying to break into the wholesaling business, but I am confused about how to get the seller/buyer under contract. Where exactly do I get the contract? Do I write it? Can I buy it somewhere? I don’t know anything about writing contracts. Is it legal to write your own contract? I would really appreciate any feedback. Thank you!
Hey Apad, you can actually write up a contract or agreement on a napkin at taco Bell stating the agreed on price and terms and if the seller and you signed it, it wud be perfectly legal.
However I got my contracts out of the book by Jackie Lange called
“RE Profits on Steroids”, get it on Amazon for a few buks, it has the simple 2 page purchase and sales contract along with the Assignment of contract. I’ve use them for multiple deals with no problems.
Thanks very much for your help! :biggrin
Yes I am also reading that book thanks to Randoskie , it’s great and I will use her contracts, they are easy to understand. Thank you Randoskie! I also have my list of buyers ready, and Tittle company. Setting up ads on Craigslist, using yellow letters to sellers, and going to some meets from local REI club.
Getting there!
Newbie24
You have to look at it like this,
There are always going to be people that own free and clear properties or even ones with a mortgage balance that realtors wont touch. There will always be people that want to rehab real estate. I can almost guarantee you that at least half of rehabs taking place in ATL are from people that bought the house from a wholesaler.
When people say the Wholesaling Real Estate is dead, It makes me believe that they are trying to divert that persons attention to something else that will benefit the opposer. :bobble
All these was great answers and questions, especially when you are starting out and learning the ropes