As the title says, I have a friend in real estate. Her and I are both very young and motivated. She just got her license in May and she is ready to make some money. The reason why I posted in this section is because I feel I only have two choice due to my lack of cash reserve… wholesaling and flipping properties.
My question is… since I have an agent on my side… how can she help me? She has already accessed the MLS and showed me plenty of properties. But I don’t really know where to go from here. I don’t know how to wholesale properties where the seller has an agent. Can anyone tell me how to make maximum use of my relationship with my friend? Thanks in advance!
well when i say flipping i’m actually talking about rehabbing… sorry. i have a bad habit of doing that. so wholesaling and rehabbing. why dont you think i can find anything with enough margin to wholesale? what if i wholesale to another family instead of an investor for just a few grand each time around. i think its worth it. i just dont know how i would wholesale a property where the seller has an agent.
If you are that good at finding buyers that you can sell the houses for more than you are paying, why not just become an agent and take all of the risk out of the deal and earn 3% on each house?
well for one, being active duty Army doesn’t grant me the time to be an agent. i’m just not understand the problem though. like right now i know a guy who is selling his home for 71k. he’s about to foreclose and he just wants to get what he owes. the house needs a little work but the ARV isnt gonne be more than 100k. so thats not really the kind of property i would want to rehab because the profit margin isnt big enough. but if i could find a buyer in this military town (don’t forget troops come home all the time) who is willing to pay 76k on a house that was appraised at 80k whats wrong with that? seller doesnt foreclose, i get 5k, buyer gets some free equity and a new home. all it took from me was a few signed pieces of paper. no need for me to be an agent for that. i’m just saying is there any way that having an agent on my side can make this process easier for me?
In that specific case, no, I don’t think there is an advantage, because you should be able to negotiate another 3% off the price if you don’t have an agent.
All you need to do is write up a contract on the property and then line up another buyer to whom you will assign the contract. I doubt you would need to do a double-closing on that kind of deal.
She can give you recent sales data on:
What has sold in the last 3 months
How long each property was on the market
How much it was listed for, and how much it sold for
This will help you determine ARV on properties, so that when you look at a prospective property, you will know whether or not it is a deal right away.