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HI Nick
Depending on the condition of the property this looks like a great deal.
If you don’t want to go to Houston, it would be better to either team up with someone IN THAT AREA who is experienced to work the lead. Agree up front and in writing what you will be paid for the lead. 10% of the profit is customary when you only supply a lead. If you have a contract on the property, you could make more.
Patti McGregor is in Houston. She would jump on this one and keep you informed AND pay your referral fee. I will PM you her contact info.
Let us know how it turns out.
Good luck
JackieHi Jackie,
I provided a signed contract to the wholesaler to purchase the property but he did not sign and return it. He said that he wants to deal only with the the end-buyer. I thought that I had to get a property under contract first before presenting it to an end-buyer. So how can I do a deal and get paid with no contract and equitable interest on the property? Thanks, Nick
ahhh I see the problem now.
a wholesaler will rarely work with another wholesaler. You need to ONLY work with the true owner of the property directly.
The way wholesaling works, Investor A gets a contract directly with the owner of the property. Then the contract or the house is sold to Investor B who actually closes on the property so they can rehab it. That’s the right way to do wholesaling
The wrong way (and risky for everyone) to do wholesaling is a daisy chain. A daisy chain is when let’s say Investor A has a contract directly with the owner of the property. Similar to the motivated seller leads we are providing. Then Investor C wants to get a contract from Investor A so that Investor C can sell the contract or the house to Investor B. Sometimes the daisy chain gets even longer and there is an Investor D or Investor E in the middle of the deal too. The more people who are involved in the transaction the higher the chance the whole thing will fall apart because Investor A (who got the original contract) loses control when there are a lot of other people involved in the middle of the deal.
Don’t get involved in daisy chains.
You need to find your own deals. Or be prepared to close on the deals other wholesalers find for you. Then after you close, you can resell.
Hi Jackie,
The investor told me that he didn’t sign my contract because he will buy the property and sell it the same day directly to the end-buyer (double closing and no assignments). The only way that I can think of for me to get paid is to have a JV agreement with investor stating amount of payment to me, if property closes with end-buyer that I introduced to the deal.
In my area most homeowner’s sell with a Realtor, there are very few FSBOs and very few that will sell at discount. On Craigslist in my area most of the homes for sale are by Realtors or investors/wholesalers. I’ve been trying for two years with no success yet, so I’ve been trying to help sell other wholesaler’s inventory. The investors that I hear are successful are mailing 5,000 to 10,000 yellow letters a month. Since I have no money I’ve been contacting sellers online such as Craigslist or Zillow and in other states where there seems to be more wholesaling activity,
Thanks
NickNick
It is rare that you will find a good wholesale deal that is listed with a real estate agent or advertised anywhere on the internet – including craigslist.
Rarely are any wholesale deals advertised unless a wholesaler already has a contract on them. And one wholesaler will usually not work with a middle person (another wholesaler) to sell their properties – they want to sell directly to the person who will close. Getting too many people in the middle of a deal is a sure way to kill the deal.
You don’t need to send out 5,000 postcards a week or a month to find a wholesale deal. You can drive around older, less expensive neighborhoods to find deals. Or walk neighborhoods, knocking on doors and talking to people.
Or you can recruit people on craigslist to drive around for you. You don’t need to pay them anything until they bring you a deal that you can get a contract on them sell — so there is ZERO marketing expenses.
Just yesterday, I was going to a friends house who I have not visited in a long time I got turned around on the way to her house. And driving down the street I spotted a house with really tall grass. I drove in to the driveway and noticed the windows were broken out of several windows on the house. The neighbors said they moved out 2 months ago but gave me a phone number and email for the owners. No for sale signs. Not advertised anywhere online The public records show it was purchased 28 years ago so there are is definitely equity. This is how you find really great deals!
It’s not going to work to try to get in on other wholesaler’s deals. You need to find your own.
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