Anybody here WHOLESALE?

[Babsie 0]

My partner and I have decided we want to buy more rental properties. However, we don't have much cash to do this, so we've opted to get into wholesaling. We took some training, and we've got quite a few vacant properties logged. We're getting our contract finalized with our attorney, and then we're ready to start contacting homeowners. We have some rehabbers on our investor list, but not a ton. We're still contacting investors to see if any are interested in properties.

 

We have been told this is a fairly easy way to get cash. Anybody have any experiences with wholesaling? We're from the Albany, NY area.

 

Thanks,

 

Babs Wagner

[dvought 0]

Hi Babs,

 

I don't have experience with wholesaling (other than what I've learned in seminars), but I do know investors that would potentially be interested in purchasing your wholesale deals in the Albany area. Actually, Albany is also in my 5-year plan for an area I will be targeting for buy-and-hold rentals, but that is a few years away, as I am currently concentrating in some other areas first.

 

When you do get any of those deals, either post them on this site or send me a PM, and maybe we can do some business!

 

Best of luck!

Dawn

[Jonathan RexfordFL 8]

My partner and I have decided we want to buy more rental properties. However, we don't have much cash to do this, so we've opted to get into wholesaling. We took some training, and we've got quite a few vacant properties logged. We're getting our contract finalized with our attorney, and then we're ready to start contacting homeowners. We have some rehabbers on our investor list, but not a ton. We're still contacting investors to see if any are interested in properties.

 

We have been told this is a fairly easy way to get cash. Anybody have any experiences with wholesaling? We're from the Albany, NY area.

 

Thanks,

 

Babs Wagner

 

Hello Babs,

 

I am not from your area but I have done several wholesale type of deals. Even have a few now. The real key is to find out what your market place can give you. What I mean is that you have all these houses, you need to find out what rehabbers want and what are there profit margins. I have a list of about 1200 investors in my database. But, I have only sold to 5. Those 5 are my steady source, if I have a good deal. I get emails, and calls each month from a few of them asking me if I have a deal.

 

So now is the time to go find out what people want. Call the we buy house people. Find out of they are assignors or players.

 

Regards,

[slipring 0]

I am currently attempting to complete my first wholesale deal in North Carolina. Got the property under contract for $37,500.00 on July 10th with ARV of $78,000.00. I am trying to assign it for $42,000.00 with about $8,000.00 in repairs needed. It was my thoughts that after repairs you would be at 66% of ARV. I'm wondering if this is enough of a profit margin for rehabbers in this market because I notified about 10 investors and no bites. My local market did not enjoy the highs of the previous soaring market but we weren't really effected by the decline either.

[MichaelC 160]

What is the feedback you're receiving from these so-called investors? Are they telling you the numbers don't work? Are they just not returning your calls?

[slipring 0]

What is the feedback you're receiving from these so-called investors? Are they telling you the numbers don't work? Are they just not returning your calls?

 

 

I've spoken to around 5 investors and gave them the details but no phone calls back. I'm not sure I've spoken to any actual "Rehabbers", probably just wholsalers or con artist. I have to find the real players around here. I think my numbers are solid. I am leaving 30%-35% percent on the table after repairs and closing cost so we'll see. I'll give an update as to how this deal turns out.

[Jonathan RexfordFL 8]

Here is a neat way to find buyers. You need to find a realtor to give you a list of properties that have sold for the last 6 months, that have been REO's, SHort Sales etc. I am sure there is away that you can cross reference these to see if they are owner occupied or non owner occupied.

 

Get a mapping program like Microsoft streets and maps. Import all addresses and take a drive. You will find out who owns and what people are buying.

 

Another way to build a list is to do a 5 mile radius search of all non owner occupied houses in your area. Get that data from Melissa data.

 

Send a post card out announcing your property.

[slipring 0]

Update.....Finally found a buyer! After numerous phone calls and emails I found a rehabber with cash who does 30 houses a year according to him. I hand carried the signed contracts to the title company and closing is on July 31st. I only got 3000.00 for the assignment but I'll take it just to get my first deal done. Everyone at the title company new who my buyer was so that was a good sign. "He always closes with cash" seems to be his reputation. He's even willing to guide me through my deals so that is a plus. The final numbers are: Purchase contract for 32000.00, assignment fee 3000.00, ARV 78000.00. So my buyer after closing is in it for 37500.00.

 

Concurrent to all this I have managed to negotiate a wrap around mortgage on a property(I am getting the deed). Original mortgage of 91000.00. New mortgage between me and seller of 95000.00 at 847.00 a month. (his mortgage payment). I don't start paying until Oct 1. Have ad on craigslist for 115000.00 with 7000.00 down at 950 a month or 5000.00 down at 1050 a month. Hopefully I can secure a buyer in the next two months. Place needs a lttle work. As I was posting this update I received the followinf email offer on the property:

 

 

Hello: Please send info on taxes, lot size, heating and cooling info, age of roof, home needs. I would be willing to offer the following if I like the home once I see it.

 

I own a note with a value of just over $67,000. Net's $491.91 for the next 17 years and 4 months. Payout with interest, about $103,000. I'd make a tentative offer of trading ownership of the note (a written guarantee will be provided for your protection), you can always place a lien on the property your selling as well. . The note transaction was prepared and settled by a law office here in PA, and can be transferred via the same office. Your attorney can deal directly with that office if you wish. I will include $40,000 in cash to go with the note. If you have any interest, then please let me know.

 

Sound like a scam, anyone seen this before?

 

Thanks

[MichaelC 160]

NC, first, congrats on finding your wholesaler and getting the deal done. Nice work.

As for the second deal and the possibility of the buyer being a scam, it's too soon to say. If the deal he is proposing interests you, don't go at it alone. Get an assist from someone you trust and with more experience to review the offer. Another investor from the local REIC, an attorney, someone at the title company, etc.

[slipring 0]

NC, first, congrats on finding your wholesaler and getting the deal done. Nice work.

As for the second deal and the possibility of the buyer being a scam, it's too soon to say. If the deal he is proposing interests you, don't go at it alone. Get an assist from someone you trust and with more experience to review the offer. Another investor from the local REIC, an attorney, someone at the title company, etc.

 

Michael,

 

Thanks for the advice. I replied to his email with 20k cash and take over payments of 847.00 a month. If this thing is legit I am definitely using the title company for this.

[GetSmart 0]

NC, first, congrats on finding your wholesaler and getting the deal done. Nice work.

As for the second deal and the possibility of the buyer being a scam, it's too soon to say. If the deal he is proposing interests you, don't go at it alone. Get an assist from someone you trust and with more experience to review the offer. Another investor from the local REIC, an attorney, someone at the title company, etc.

 

Michael,

 

Thanks for the advice. I replied to his email with 20k cash and take over payments of 847.00 a month. If this thing is legit I am definitely using the title company for this.

what part of nc are you in?

[slipring 0]

what part of nc are you in?

I am in Fayetteville. How about you?

[GetSmart 0]

charlotte! which isn't what everyone thinks.

[jg714 0]

I own a note with a value of just over $67,000. Net's $491.91 for the next 17 years and 4 months. Payout with interest, about $103,000.

 

Based on these numbers, you are lending out $67,000 @ 5.27%

 

This guy is hoping that you are an unsophisticated investor. Notes are rarely sold at face value. I doubt he would pay you full price if the tables were turned. If he could realy cash the note out at full value, he would have done so. Investing in notes is like investing in properties, you have to do your due diligence.

 

Ask him for some info. :

 

1. Is the note secured by real estate?

 

2. Is it a first position note? (jr. notes are too risky)

 

3. What is the LTV ratio

 

4. Where is the propery located ( what is the market like? declining area?)

 

5. Who is paying this note? is it owner occupied? Whats thier credit score/s. (if they default, then what)

 

6. How long is the foreclosure process in that state?

 

When you own a note, you are the bank. Ask questions that a bank would ask. In the best case scenario I would only pay about 50% of the note value and have him make up the difference in cash. Don't be a motivated buyer!