I just recieved my real estate license in CA. I’m interested in wholesaling and making some extra money and branching off from there. I’m totaly new to this and wanted some advice on where to start. I’m in California and wanted to know the best tools to have to start to help me learn more about HML’s, double closings, contract assignments etc. Where would you start if you were in my situation. It seems very overwhelming trying to learn this stuff because there is so much information. But I want to start with wholesaling for now. thanks
Your hands are tied in some ways as a Realtor. You will get fined in a massive way for some things that wholesalers do.
Realtors who are involved in wholesaling property are most often involved with REO’s who worked their way up from doing the grunt work, BPO’s.
marcus, Eric Medemar here on the forums is a wholesale investor and a Realtor. Sometimes he profits a comission and the spread on a wholesale deal. Send hima PM. Herbster
Ok thanks Herb!
Real estate agents and bent property lawyers are just about the most hated and reviled people on earth and with good reason…
Why is that? I’m new to this. I mean…I have clients that are traditional buyers, sellers, but I’m not sure where you’re going with this comment. Please elaborate. From my understanding, people who want to wholesale (investors) need a good realtor to work with to find properties. At least that’s what I read in many of these threads. Well if I’m a realtor interested in wholesaling and building my own investment portfolio, wouldn’t that go hand in hand?
Herbster…what’s your take on this.
It’s beneficial to have access to MLS but most good wholesale deals are not there. They are via finding hardship situations and solving people problems.
If you are a Realtor selling the low income property than that is exactly what you are. A specialist in low income property, but not a wholesaler. It’s quite a bit different in many ways.
As a fellow agent, I’ll tell you that you’re in an excellent position to wholesale properties. It is perfectly legal for agents to wholesale properties. The important thing to remember is that you must always provide appropriate disclosures. Check with your broker to make sure you’re providing all necessary disclosures in your transactions. As an agent, you have the opportunity to make an agent commission, as well as earn a profit spread on the wholesale. Be sure to discuss the policies of personal investments with your broker.
One of the best ways to get information on HMLs and assigning contracts are forums like this one and flippinghomes.com.
The MLS is a great source of potential wholesale properties. The deal is created when you get a property under contract at a price low enough to make sense for an end-buyer. Don’t worry about what the sellers are asking for. Look for pre-foreclosures, short sales, properties on the MLS for a really long time, REOS, etc. Get to know an area well and start making offers.
marcus, As my own rule I don’t care for Realtors. I find them as deal killers on my other investments. Now a Realtor like yourself and Raquel have the ability to think out of the box and we would work good together. Raquel had a good reply as there are many other methods of acquiring wholesale deals, some you don’t need a Realtor for. Most REO’s and foreclosures are listed by Realtors who are listing agents for REO’s and foreclosures. Why don’t you move to my area, I’d like that.
Herbster
Thanks Raquel and Herb!!! It’s just so dog gone overwhelming. I wish I had a mentor or something. I’ll make this work. It’s gonna take alot of reading and studying. Thanks again guys and I’ll keep in touch.
Thats what I like to see… People helping a situation and growing the real estate investment empire.
Also talk to your broker and other agents in your office. In addition to this and other forums, that’s how I learned about wholesaling. My broker offers training classes, and one of the classes happened to be about investing. My broker mentioned “assignments” and my ears perked up right away. It turns out that before he was an agent, he used to wholesale properties for years! So you never know unless you ask. :smile
As a realtor/agent with trust and confidence, Its really a conflict of interest to locate a motivated seller lock him up in a contract and flip it to an end user on a smiultanous close. One he finds out how much your making hes going to skwalk like a bird?