| This is my very first article. I am just now | | | | value (After repair value) , minus repairs and |
| catching up to the internet world. I played | | | | minus their determined assignment fee. Then they |
| professional golf most of my life, but have been | | | | are supposed to find an investor/rehabber that |
| an active real estate investor and wholesaler for | | | | will buy their contract for 65 percent of the retail |
| around 22 years. | | | | value minus those repairs and your assignment |
| I have contracted over 200 homes in that period | | | | fee. |
| of time. Most of those homes I have flipped to | | | | Example: House value $100,00.00 x.65% = |
| other investors / rehabbers and made a very | | | | $65,000.00 -the repairs - $25,000.00 - assignment |
| quick and fairly easy profit. I have also kept many | | | | fee -$5000.00 What you offer the seller = |
| homes to rehab and retail out and many of them | | | | $35,000.00 |
| I kept for rental property, to build long term | | | | Good luck! |
| wealth. | | | | I agree that you should try and buy a home for a |
| I have used several different exit strategies when | | | | low a price as you can get it, but many |
| I buy homes. Owner financing , lease options and | | | | homeowners are just not going to sell their home |
| rental property. This is the beauty of being a | | | | that cheap. That is where most of the callers end |
| professional real estate wholesaler. It gives me | | | | up. No contract on a home. No assignment fee |
| many options on property that I have bought at | | | | and no living. The above example is a great |
| big discounts. If I keep the property for rental, | | | | scenario to follow if you can get the seller to |
| then I have a great piece of real estate that has | | | | agree. Many won't. This is where I see the lack of |
| huge equity and certainly is not as effected by | | | | understanding and training that they have been |
| downturns in the real estate market. | | | | given. These guru educated students don't have a |
| I rarely deal with foreclosure property. In most | | | | clue what to do at this point. No negotiating skills. |
| cases there is very little equity to work with. I | | | | Many homes that I have gotten under contract |
| don't look for a paltry amount of cash flow from | | | | were homes that wholesalers made offers on |
| a home. Rental management is too much work. | | | | and didn't get, because they are stuck on this 65 |
| Too many people and legal problems to deal with. | | | | percent rule that they are taught. A rule that just |
| Now, if I have a house with 25 to 50 percent | | | | doesn't work all of the time. |
| equity, I certainly don't mind the hassle as much | | | | I prefer to give the seller more for his home and |
| and I am not effected by the market. Besides, I | | | | give the investor a lower percentage of return. I |
| can flip a contract on a house and make a profit | | | | have investors that don't necessarily apply the 65 |
| greater than possibly 20 rental houses will make | | | | percent rule when it comes to rehabbing a home. |
| me. I might flip five houses in one month. That is | | | | In the example I used above, why should an |
| a much better scenario than leaking faucets, | | | | investor always make 35 percent profit on a deal. |
| broken hot water heaters, leaking roofs, etc. | | | | I am not here to make investors rich. I just want |
| I have spent over one and a half years working | | | | to give them a good profit margin for 60 to 90 |
| on my educational information that is available on | | | | days of rehab work. I found the house and the |
| the web. | | | | seller. Without those, the investor makes nothing. |
| I live in Dallas, Texas and do strong advertising | | | | I would certainly think that if an investor made 20 |
| for motivated sellers in our metroplex are of | | | | percent profit in a short period of time, that is a |
| Dallas/Ft.Worth. I get calls everyday from many | | | | terrific return on their investment. Can any of you |
| people that have nothing to do with selling their | | | | tell me where I can make 20 percent return on |
| home. The calls are from people that have taken | | | | my investment in that period of time? You can't. |
| expensive Wholesaling courses from big gurus in | | | | Besides, if they know what they are doing, they |
| the business. People with some knowledge, but no | | | | can get good tax benefits on the investment. |
| mentoring. People who have spent a fortune to | | | | Find investors that are willing to be reasonable |
| learn my business. Most all of these people are still | | | | about their profit margins and you will contract |
| in the fog. They have no clue which way to go. | | | | more houses. I guarantee it. |
| They seem to know the basic structure of | | | | People that are truly trying to learn our business |
| wholesaling, but just can't put it all together. No | | | | are not being educated the correct way. They |
| experience or training in applying exit strategies | | | | are stuck , like being trained by the government; |
| They have been given plagiarized facts about the | | | | Follow the rules in the book , NO EXCEPTIONS. |
| wholesaling business and no support. No mentoring. | | | | You will never accomplish your goals with this |
| If they do get offered some type of mentoring, | | | | mindset. |
| it will cost them a bunch more money. It seems | | | | You have to negotiate. You have to negotiate |
| like they get piecemealed to death. | | | | with buyers and sellers. Our business is |
| All seem to have this mindset that a wholesale | | | | negotiations , not lost in the fog. |
| price for real estate is 65 percent of the retail | | | | |