I am a realtor in NJ, (retail) and would like to wholesale some properties, is this viable in the current economic times? (Question1) Having to exercise an escape clause in a contract because of an inability to find a buyer timely, does this reduce your credibility as an investor? (Question 2) Is NJ Lispendens a good place to find motivated sellers. Question 3) Where do I start?
Seasoned Investors please comment. :bobble Much Thanks Ready to get started
Well, as a real estate wholesaler, you get the absolute best of all worlds. You make money regardless of real estate market conditions. You are not required to have any money. You don’t need to have good credit. It doesn’t matter if your unemployed, bankrupt or broke. Well, do not believe the hype! They pay a real estate wholesaler a good fee for finding them quality properties to BUY! There are people buying houses in this gloomy, end of the world real estate market. The people buying now are setting themselves up for financial security. They are buying rights. Well, this basically means that if you buy at a low enough price you will make money when you eventually sell at a higher price. As a wholesaler, you just have to find what these investors are looking for and make money doing it. This technique requires a wholesaler to put up no money. You don’t have to have your credit pulled. All that is required from you is a few hours a week and the knowledge to put these deals together. And here’s a the good news, wholesaling real estate will put immediate CASH in your bank account! Good luck!
Q1. best time to buy
Q2. Too many sellers out there to damage your creditabilty. Just don’t get closing attorneys involved until you have a qualified buyer that has signed a contract
- Give your self a 45 to 60 day closing period.
- Only put down $10 as earnest money
- Use clause 'SUBJECT TO PARTNER’S APPROVAL"
- Another clause to add is one where the only remedy for default is the earnest money
Q3. No idea about NJ
Q4. Start with the buyer in mind first, just like you do as a Realtor.
Thanks for your input I’m sure I’ll have more questions soon.
- It can reduce your credibility as an investor if you are doing it with the same realtor/investor over and over again. I can tell you from experience that investors are a pretty tight knit group, and word spreads fast about people who are all talk and no action.
To prevent this, spend some time qualifying your buyers very specifically ahead of time so that the properties that you choose are dead on. Also be sure that you are only putting contracts on properties that you already have buyers for.
Start by building your buyers list. Dont make the same mistake that so many newbies make and run around chasing houses when you have no buyers.
Good buyers carry far more leverage than good deals on homes, because good buyers will buy again and again and again, where as good deals only come once then there gone.