Back in the real estate game and looking for junk removal companies nationwide!

Originally Posted by Gangel

Or a real estate license.

I have a whole list of negatives people are doing "wrong" in their "businesses". People come out here and do the " what am I doing wrong" and then don't really want to hear the ideas.
I do often wonder if the customers on the eastern timezone are more "naive" than here, from other stuff I've seen with other members.

even more confusing....What happened to buy low and sell high

Originally Posted by mikeinreco

even more confusing....What happened to buy low and sell high

When it comes to wholesaling, you do buy low, but that is only because most of the properties you put under contract have light to high rehab that needs done, so it is like buying a foreclosure for pennies on the dollar, but not as severe.

You have to calculate in the cost for rehab, and include what type of spread you want, plus what the house will sell for, when done. That is when you figure out your maximum offer.

Originally Posted by Gangel

Or a real estate license.

Only if I was a realtor/broker, which I am not. I am a real estate wholesaler, which you are not required to have a real estate license.

We are known either as a real estate wholesaler or real estate investor. Anyone can buy and sell real estate. Landlords for instance do it all the time. In fact, landlords are some of the biggest investors in real estate there is. Followed by cash rehabbers.

Rehabbers will buy, rehab the property, and then sell it either themselves, or through a licensed realtor. If you do it yourself, all the documents are available, and you just open escrow for the closing, just like a realtor would.

Only big different, is that you at some point in the transaction actually own the property, unless you are flipping your right to buy the property, to your cash buyer, which is what a lot of wholesalers/investors do.

The way you own the property, is by doing what is considered a simultaneous close. Unless you have the funding yourself, it would involve using a transactional funder, or a hard money lender. They lend you the purchase money for a x amount of days, for a x % plus a standard fee. In those cases, you would close your part of the deal at say 2pm for instance, and then you close the other deal with your buyer at some point during that day.

Originally Posted by GeorgeB

Only if I was a realtor/broker, which I am not. I am a real estate wholesaler, which you are not required to have a real estate license.

We are known either as a real estate wholesaler or real estate investor. Anyone can buy and sell real estate. Landlords for instance do it all the time. In fact, landlords are some of the biggest investors in real estate there is. Followed by cash rehabbers.

Rehabbers will buy, rehab the property, and then sell it either themselves, or through a licensed realtor. If you do it yourself, all the documents are available, and you just open escrow for the closing, just like a realtor would.

Only big different, is that you at some point in the transaction actually own the property, unless you are flipping your right to buy the property, to your cash buyer, which is what a lot of wholesalers/investors do.

The way you own the property, is by doing what is considered a simultaneous close. Unless you have the funding yourself, it would involve using a transactional funder, or a hard money lender. They lend you the purchase money for a x amount of days, for a x % plus a standard fee. In those cases, you would close your part of the deal at say 2pm for instance, and then you close the other deal with your buyer at some point during that day.

sounds like a scam

Originally Posted by TheFatMan

He's exploiting bridge financing in a market trying to escalate a turn around on homes that have basically been abandoned or condemned.

sounds shady

Originally Posted by mikeinreco

sounds shady

I have this divine gift for seeing through BS. I'm amazing at it. It's like this home skillet. Dude be driving through the suburbs after a natural disaster or through a poor side of town where all the windows be boarded up. Notices a home still standing. Checks the public listing and is like "Hey dawg, the bank owns that property or that beast is in foreclosure, or it's in a transitional period. Let me call my money guy and get this place picked up cheap." The money man is like "Oakely Dokoley, OK, however you can have my money for a couple weeks, but it comes with a high arse interest rate Brah. No surfing on the job with Keanu Reeves yo diggity!" then the fella driving through the neighborhood tracks down the institution or entity that has the property and is like "Yo, me and my dude want to throw down on this property. Don't worry, we going to buy it low and sell it high." That's the bridge part... So this fat cat with all his money collects this big ole interest payment for loaning out his money for a couple weeks, this poor fella sells a property that he got for cheap because it was in fact, crap in the first place, for a substantial sum of money to make him a little cash... to someone with poor judgement who hopes to fix it up and live there or sell it for an even higher price, and then the cycle continues. You don't need a license to do this, just collateral to get a loan from a money man or "lender", and collateral isn't much for a buying a foreclosed home. You could probably use a 88 Oldsmobile Century as collateral. However, these homes are rarely up to housing codes, rarely inspected, and are typically the places where you can buy some crack or score a girl with loose morals for a pack of smokes and a 40 of some Colt .45

Originally Posted by TheFatMan

I have this divine gift for seeing through BS. I'm amazing at it. It's like this home skillet. Dude be driving through the suburbs after a natural disaster or through a poor side of town where all the windows be boarded up. Notices a home still standing. Checks the public listing and is like "Hey dawg, the bank owns that property or that beast is in foreclosure, or it's in a transitional period. Let me call my money guy and get this place picked up cheap." The money man is like "Oakely Dokoley, OK, however you can have my money for a couple weeks, but it comes with a high arse interest rate Brah. No surfing on the job with Keanu Reeves yo diggity!" then the fella driving through the neighborhood tracks down the institution or entity that has the property and is like "Yo, me and my dude want to throw down on this property. Don't worry, we going to buy it low and sell it high." That's the bridge part... So this fat cat with all his money collects this big ole interest payment for loaning out his money for a couple weeks, this poor fella sells a property that he got for cheap because it was in fact, crap in the first place, for a substantial sum of money to make him a little cash... to someone with poor judgement who hopes to fix it up and live there or sell it for an even higher price, and then the cycle continues. You don't need a license to do this, just collateral to get a loan from a money man or "lender", and collateral isn't much for a buying a foreclosed home. You could probably use a 88 Oldsmobile Century as collateral. However, these homes are rarely up to housing codes, rarely inspected, and are typically the places where you can buy some crack or score a girl with loose morals for a pack of smokes and a 40 of some Colt .45

That is putting wholesaling in a very bad light. Wholesaling is no where near what you are trying to make it out to be, really.

You can wholesale any property, even commercial. They can be total crap, or ready to move in properties.

Yes, sometimes the homes are indeed bought at a low price, but that is because sometimes they need 10's of thousands in rehab cost.

You are also confusing wholesaling with bank foreclosed properties aka REOs. Those are mainly picked up by landlords/rehabbers.

Wholesalers can indeed wholesale those properties as well, but they are sold by banks for pennies on the dollar to clear their bad debts off.

Wholesaling got invented when people wanted to sell their homes, and they can't sell on their own, because they might not know how, or through a realtor, because of the properties needing work done to them.

Most individuals, need homes they can move into now, not 90 days from today.

Also, regarding the transfunding, and hard money lending, there is none of your personal collateral involved. They lend based on the deal. As long as there will be enough equity to justify it, and the numbers work for them, they lend you what you need.

Originally Posted by TheFatMan

He's exploiting bridge financing in a market trying to escalate a turn around on homes that have basically been abandoned or condemned.

Those types of homes are more REO's than than they are the type that would fall under wholesaling category really.

Also, I am familiar with bridge financing, and that does sometimes take place when using trans funding or hard money lending, but if you do the simple, not overly complicated traditional wholesaling, there is nothing like that involved.

Also, the types of homes mostly involved in wholesaling are ones that are needing some level of repair/rehab done to them. They can be vacant or have someone living in them. They can also be move in ready homes. You can generally spot wholesale opportunities just by looking at the properties driving in different neighborhoods. A lot of owners have properties that are in another state, and costs to much money to travel back and forth to main the upkeep, and to costly to hire a property mangement company, so the property is "let go" so to speak.

There is lots of reasons behind a property to be wholesaled, and lots of different situations.