Wholeselling Beginer
Hi:
I was wondering how do you find deals to wholesale (driving around)?, do you actually use Hard Money to purchase the property and than resell it (is this worth it)? or do you just assigned it (is this legal flipping, I know that there has been lots of issues in the Chicago area about this)? and what kind of profits are you looking for wholeselling 2K, 3K+?
Thank you in advance
Goce
I do it two ways
1) buy house, fix it, and then sell it.
2) Look for house,then match a person with a house.
If I buy and fix, it depends on the sale price, ARV, and if anyone wants it.
If I match buyer with house. Then the the usual fee is $2,000.00 in my area.
So I make more money actually buying theproperty but I put more money out.
I have never bought an investment property with a mortgage myself. But I know a lot of investors that use hard money loans to buy,fix, and sell.
You should sit down write out all your options and decide what one works into your schedule. If the scenario doesn't fit into your schedule the time frame of keeping the property will be way off. If you go that route.
Good Luck
Lori
[addsig]
You can find deals tons of ways. Check out the marketing forum. Mail to foreclosures, probate, divorce cases, etc. You can put up bandit signs. Strike up a relationship with a RE agent that'll send you expired listings or maybe even send you leads before they hit the MLS. Print up flyers or door hangers and distribute.
If you have the funds, put out a late night commercial on channel 26 or 50 =) DON'T LOSE YOUR HOUSE! Call now, and listen to our FREE home saving information tapes.
Then you'll get leads rolling in that you wish never did. Then bird dog it, put it under contract and wholesale it, or rehab it yourself. Profit is up to you, each deal will be different. If you're sending a lead or wholesaling, just make sure there is plenty of profit for the next guy.
Oh ya, while you're doing this try to get your ducks in line. Attorney, mortgage brokers, title company, personal assistant (I recommend a gentleman by the name of Farnsworth Bentley), etc.
Good luck!
DC
Quote:
On 2004-04-12 17:41, goce wrote:
Hi:
I was wondering how do you find deals to wholesale (driving around)?, do you actually use Hard Money to purchase the property and than resell it (is this worth it)? or do you just assigned it (is this legal flipping, I know that there has been lots of issues in the Chicago area about this)? and what kind of profits are you looking for wholeselling 2K, 3K+?
Thank you in advance
Goce
Quote:
On 2004-04-12 17:41, goce wrote:
Hi:
I was wondering how do you find deals to wholesale (driving around)?, do you actually use Hard Money to purchase the property and than resell it (is this worth it)? or do you just assigned it (is this legal flipping, I know that there has been lots of issues in the Chicago area about this)? and what kind of profits are you looking for wholeselling 2K, 3K+?
Thank you in advance
Goce
Goce,When you wholesale a property you assign the contract to another investor for a fee which can range from $3,000.00-$10,000.00. You will not need a HML since you will not be the one who closes on the house.
Thank you all for the responses, this is great. One question when I assign it to another investor do I let the seller know, or is this all done at closing with the title company?
Goce
This is gonna be an upopular post, but I've got a question. Why do all beginners, just getting into the field, think they need to wholesale houses? I can understand them perhaps doing a little bird-dogging, learning the biz, learning how investors think when buying houses. But, Wholesaling? That's getting into some deep water, and swimming with some might big, hungry sharks, right off the bat, with little preparation. No offense, Goce, but if you don't know how to even find houses to sale, then what're the odds some investor who's probably bought 200 houses in the last year, is going to be interested in deals you've got? Or, that he's not going to take you to the cleaners? I've been baffled by this whole concept ever since I've been reading and posting a little bit on this board. Personally, I spent 6 months studying, looking at houses, trying to learn how everything worked before I ever even THOUGHT about buying a piece of property. I know I'm probably not the sharpest knife in the drawer, but even so, I figured I spent the minimum amount of time getting prepared for REI. Anyway, just was curious, and was wondering why all newbies want to start with Wholesaling...
it sounds easy to whole sale, so go for what is easy is the attraction
