Can You WHOLESALE A Subject-to Deal??
Is it feasible to wholesale a subject-to deal? How would one go about doing this? Would I need to get the seller to sign something that says I have the right to assign this contract - and then sell it to another investor for a "finders fee"???
If this happens - can anyone tell me a good finders fee that they use??
Thank you!
Matt
Here is my 2 cents on this subject. I really can't comprehend why you would want to wholesale a sub 2 deal in the first place. If you have a good deal why not do it yourself.......the avg. return over 2 years is like 28,000 big ones.
I would say if you want to wholesale then do it but if you want to do sub 2 then just do that. On the subject of finders fees it really just depends on the investor you are working with. Some good deals you could make 3 or 4 grand but other times they aren't willing to pay that.
All in all I would say if you found a good deal DON'T just give it away.
JL, nice reply.
Just curious, have you done a lot of the sub2s yourself? Would love some stories if so.
Birddogging a subto deal makes perfect sense if you don't have the $$$$ to fall back on if things don't go as planned. If might take a couple more months to get the place filled or you might need to advertise more than planned etc... if you plan on birddogging a sub-to deal, make sure the investor you are birddogging to knows what he is doing and has acutally closed some deals...if you pass him a good qualified lead (a done deal that just needs to be clsoed) and he isn't going to pay you until he gets someone in there, he's just a glorified birddogger...it's been my experience that the serious players will pay you for a good qualified deal when you pass it on and not make you wait until they can successfully close it themselves....you don't want to be passing deals on to a glorified birddogger who doesn't have their act together[ Edited by way_motivated on Date 03/15/2004 ]
Quote:
On 2004-03-15 01:36, way_motivated wrote:
Birddogging a subto deal makes perfect sense if you don't have the $$$$ to fall back on if things don't go as planned. If might take a couple more months to get the place filled or you might need to advertise more than planned etc... if you plan on birddogging a sub-to deal, make sure the investor you are birddogging to knows what he is doing and has acutally closed some deals...if you pass him a good qualified lead (a done deal that just needs to be clsoed) and he isn't going to pay you until he gets someone in there, he's just a glorified birddogger...it's been my experience that the serious players will pay you for a good qualified deal when you pass it on and not make you wait until they can successfully close it themselves....you don't want to be passing deals on to a glorified birddogger who doesn't have their act together
<font size=-1>[ Edited by way_motivated on Date 03/15/2004 ]</font>
Way_Motivated,I agree with you that if you cannot afford to see the deal completely through it is better to wholesale. Here in Birmingham,Al. we are having problems with investors from out of town coming in and not knowing where to buy. They are buying houses in war zones and after finding out they made a mistake bailing and leaving the seller in a bad situation. This gives the legit investors a bad rap. As far as finders fee try for at least $3,000.00.