I am very new to real estate investing and would like to wholesale property. If i am going to wholesale what is the process of wholesaling? I am going to my first real estate club and want to start building my connections with fellow investors. If I am going to wholesale should I tell fellow investors who I want to sell property to that I am wholesaling ?Please respond back with any helpful advice.
Thanks
If you are going to wholesale properties, you will need to read and learn. You have a lot to learn about all the different methods for acquiring property. Short Sales, REO’s, Lease Options, Auctions, Direct Marketing, are just a few. Then you ned to learn how to assign contracts t the investors that buy and hold property like myself.
Vernon
I would start with getting a good course. Either Steve Cooks (www.flippinghomes.com) or Vena Jones-Cox have very good ones (she’s a www.regoddess.com).
Thanks for the advice.
Wholesaling is a good way to get cash bumps in to your business. It is a way to pay down debt. It is not necessarily a long term strategy ALONE but is an important tool for the long haul.
You will need to know how to quickly assess or get another to assess repairs. Wholesaling should start at 30% of the ARV (after repair value), less the repairs and some fudge factor. Allocate your fee in there too, then assure you are at a good margin for the work to be done. Talk to a flipper and see what makes them tick as for back end requirements. This will guide you. Don’t get greedy… be reliable and build a good client base of contractors and flippers. Let them know what you are doing. You negotiate the find, the rehabber wins if you negotiate good margins, you win if you do it well.
Watch out for title issues and water and tax liens. Don’t always take the owner at face value. Learn some clauses to protect yourself and make sure you have good RE lawyer on your team.
It takes some guidance.
Get on with it!
Survey Says!
Joe Callaghan