Hi all, what a great site! I am new to REI, I want to wholesale, have been reading like crazy, trying to learn everything I can about this opportunity. I don’t have cash now, or good credit. I am partnered with a company in Arizona that will negotiate my deals with both the buyer and seller for a 20% fee from assignment profits, but i need to find the deals and the buyers, no problemo. What’s keeping me from jumping in the wholesale water is this; I read somewhere I need to plan on spending expenses to cover title search, appraisal, inspection and comps from a service or realtor. This can add up to THOUSANDS here in CALI…WHOA! But, I’ve also been reading that it doesn’t take any money out of your own pocket to do wholesaling, less some advertising cost and consideration fees! What gives? I thought buyers would be doing this diligence on properties they want to purchase? If I have to come up with these fees, I probably won’t be able to get into wholesaling afterall. Any clarification would be great from someone doing deals currently in the real world and how you financed getting started wholesaling when you began if you didn’t have money or credit like me. HELP!? I want to dive in, but I don’t want to end up with egg on my face or my partner’s either; thanks very much for your advice/help. I’m in Northern California where EVERYTHING COSTS TOO MUCH and NOTHING IS FREE so far! -Timo
Timo:
If all you intend on doing is finding a property for end buyers then your right. but don’t expect much for than 500-600 dollars as a finders fee. Some will offer more, but you will soon find that most of the time you won’t get paid.
The wholesalers I work with already have appraisals and title work done. However they make much as they did the job they were supposed to do.
Remember wholesaling and birdogging are similar but not the same.
Thanks Steve,
I guess what I really should be asking is this; Can I set up the appraisal, inspection and title work without cash out of pocket up front and are there cheaper alternatives if not? Thanks