How do you wholesale to owner occupants
gordo2417 does this all the time from what I understand. Send him a PM.
The question is not clear (at least to me).
Are you trying to wholesale the property back to the sellers or are you trying to wholesale to an end buyer?
In the former, the simple answer is don’t do it. There are far too many potential legal problems to make it worth it.
In the latter, it’s the same as selling to a rehabber/retailer. However you normally do that, whether it’s by assigning, double-closing, etc.
Raj
You don’t wholesale to owner occupants. You wholesale to other investors or maybe retail buyers.
DemosL:
From experience, don’t get into the “finer” details of what wholesaling is (and isn’t). There are people on here that seem to have a serious problem with your (and mine) definition of wholesaling.
Just “assume”, like I did, that carpenter is just trying to sell the property at a discount to an end-buyer and is calling it “wholesaling.”
It is far easier than getting into another stupid argument on what IS wholesaling.
Raj
Raj,
People come to these forums to learn. Part of learning in any profession is the terminologies. I’m not getting into arguments with anyone if I am stating fact. When someone points out an incaccuracy in my thinking, I am happy to have learned something new.
All I did was answer Carpenter’s question.
Demos
You misunderstand.
No offense meant to you at all. In fact, I was just trying to save you a little of the grief that I received a short time back because I stated the exact same thing as you above.
Some newer investors seem to believe that anything sold for less than full market value should be considered wholesaling. Like you, I disagree. That would mean that basically 3/4 of the people with houses on the market currently are wholesalers, according to that definition.
Raj
how do i start wholesaleing houses i have bad credit no money but i dont think you need money to do this
Although you don’t need money to put a contract on a house and assign it to a rehabber investor, marketing will cost you a lot of time and some money in the beginning. Later, as you get money coming in, you can spend more money and less time.
Read as many posts in the marketing forum and this forum as you can. Also, check out all the information on this website at the top left, where it says Investor Information. Join a local REI group. Read and/or listen to whatever you can get your hand on that has anything to do with real estate investing, specifically wholesaling and/or bird dogging.
Good luck!
thanks everyone for info
DemosL,
You couldn’t be further from what is happening out there. I RARELY wholesale to investors. Maybe one-two a year. The rest I wholesale to O-O. I have it down to a science with my local lenders. All they want is good ltv’s and good buyers. I give them both. They don’t care about seasoning of title. I’m not dealing with FHA and that whole mess on my wholesale deals.
What is wholesaling and who you wholesale two are 2 different animals.
Why would I wholesale to an investor when I can wholesale to a O-O and make more money? Keep in mind…I’m not buying junker’s. If I do then I go the investor route or I rehab myself. If they are solid but need cosmetics I go straight for the O-O’s and wholesale to them. You will be amazed at what they can/want to do in order for them to have a cheaper mortgage. My business model is working and working well.
If I don’t wholesale to another investor in my lifetime I will sleep like a baby. Why wholesale a house for 5K when I can make 10-15K. Its not about being greedy. Its about taking what the market will give me.
Nate-WI
Yes, you are right, Demo. But carpenter is new. Remember, bad credit and no money. He has to build up his money and credit, so later he can pick and choose, who he wholesales too. But right now, he may have too wholesale to investors. Like I do.
OK, since you guys have started a debate about the defintion of a wholesaler, I would like to know what your definition is.
Here is mine. Let’s start with Webster’s definition of a wholesaler as “A merchant middleman who sells chiefly to retailers, other merchants, or industrial, institutional, and commercial users mainly for resale or use as a rental property.”
With a few substitutions of phrase, we can adapt this definition to a real estate wholesaler as “Someone who sells properties (or the right to buy properties) chiefly to real estate investors, rehabbers, and landlords, mainly for resale or for rental use.”
The key here is that the wholesaler’s buyer will resell the property or use it in his business. If your buyer is an owner-occupant, then you are a retailer, not a wholesaler.
Just how I see it. Anyone have a different view?
That is a funny topic that I talk about all the time when people ask me what I do.
It all depends on how you look at it.
Some people think of wholesaling as assigning contracts, and doing double closings
Other’s think of it as selling real estate at “Wholesale” prices.
You know what, I like to think of wholesaling as “A great way to make money, regardless of what you call it”
I will stand by that answer…