OK, I’ve talked to a few Real Estate Investment companies, some that help you set up LLCs, Credit and Properties to invest in. Does anybody have any feedback on these? All you seasoned investors do you belong to companies that provide you the wholesale deals? There are some companies that have deals with all the numbers laid out for you, is that a rip off?
You find wholesale deals by finding motivated sellers. I haven’t heard of investors going though a company unless that entity is just another investor trying to flip a contract to them.
well this is if I want to wholesale, I’m talking about being the investor, as in the flipper or landlord. Here is one of the companies I was referring tohttp://www.perdare.com . The properties that they have available can be found here http://www.h2hrealestate.com/ Or better yet, how can I find wholesellers?
I’ll just come right out and say that I would RUN from that company, based on what I see on the Web site. They want TEN THOUSAND DOLLARS to help you set up an LLC and apply for a bank loan (which will not exceed $250,000), and they want their cash up front, regardless of how things turn out. Never, ever pay this kind of money for this kind of service, epecially in advance.
If you decide that you need an LLC, you can do it yourself. If you really don’t want to do it yourself, you can find an attorney to help you. Find one that is not very expensive.
If you are looking for financing, work with a good mortgage broker, or, if you already have a good handle on your finances and have a relationship with a bank, try them first. Financing your deals is going to be a huge part of making them work, so know what kind of financing you need and where to get it. Do not pay $10,000 to some intermediary.
With respect to working with wholesalers, again be VERY careful. There are many good wholesalers out there, but there are probably as many bad ones. Frankly, I have yet to see a deal from a wholesaler where the numbers were accurate. Their ARVs are usually wildly inflated and their repair numbers are not even close. I typically see deals from them like “$160K ARV, $10K repairs, $100K your cost, $50K profit.”
Well, the true retail value is going to be more like $130K and the repairs are more like $20K, leaving a $10K gross margin that will be more than eaten up by closing, carrying, and commission costs.
You really need to do your own homework with any wholesaler. Do not take the numbers, tantalizing though they may be, as gospel.
There are no real shortcuts in this business. It’s difficult, complicated, risky, and time-consuming.
You can find wholesale deals anywhere, but I don’t understand your question.
Are you looking for deals that you can wholesale? Or, are you looking for wholesale deals to invest in.
Now if you are looking for deals to wholesale, then you can set them up yourself by contacting sellers who have properties price below market value. You have them give you the option to buy their property at a certain price. Then you find someone who will pay more for it.
Property Value is $200,000
Asking price is: $130,000
Find someone that will buy it for say,…$160,000. This leaves you with $30K in profit. Because they give you the $160K, out of that, you give the owner $130K, and keep the rest for yourself.
Or you could just Assign your contract to them for $5K - $10K. They give you the $5K - $10K and you walk away, then they purchase the property. This is a faster method if you just want quicker cash.
Hope that helps.
This is kind of the answer I was looking for. I understand what wholesale is, but what I was wondering is once someone has a deal they would like to wholesale, where could I find that person. I am looking for the wholsaler’s outlet so I can look at the deals. It seems like there isn’t a centralized outlet for them. If there is, please let me know.
There is a great website http://rehablist.com
Depending on what state you are in, these are wholesaled deals that are usually verified by an area consultant.
Most of the numbers are accurate, but you still need your own due diligence on investment.
You would be a far more inteligent person to find a motivated seller rather than a wholesale property. A wholesale property coming from another investor will already have much of the wholesale profit margin stripped out of it. Because as the equation gos
The best deals are not found by going to the wholesaler, the best deals are found by going to the motivated seller.
The most profit is not found in going from motivated seller to wholesaler, the most profit is going motivated seller to Retailer.
The most efficient ways to find great wholesale deals that I have found is to call every “we buy homes” sign that you pass on the road, go to Real estate functions, and network with realtors.
I just bought a home this week from networking with realtors that went into foreclosure at $92,000 and I paid $12,500, I personally sold the home 2 down from this one for $125,000. Great deals are everywhere if you know where to look