1. 1) As a wholesaler the inspection period gives you the opportunity to market the contract you have on the property to find your end buyer. How can I establish this arrangement? I just keep running the conversation through my head. How important is it to have a current certificate of occupancy (CO) for the property? As I stated in response to Randy it also gives you another strategy to close the deal where you can list the property and still gain a commission versus not gaining anything and it becoming a dead lead. Most brokerages only have a few rock stars and the majority of the agents only do a few transactions a year. Do you have experience with this type of transaction or know how to go about something like this? If they do not accept your offer you can offer to list the property and still gain a commission versus not closing the deal. Many people question this because they say you are brokering a deal without a license. First and foremost thanks for all the great advice you’ve put out on this amazing site. Why Lenticular Printing Services Is Essential For Your Business? We asked several real estate professionals what the number one question they would ask prospective agents and compiled the best questions. Having said that, here are 45 important questions to ask and get answered before rushing ahead with wholesaling real estate: How much real estate education do I need to get started? Stop second guessing yourself. I want to sell it but have not told anyone.” We are under contract right now on both legs of the transaction, and he is finally getting hands-on training. “Competition can be fierce and time tight in the rental sector, so it is crucial to have your finances in order and be able to move quickly,” says Kate Eales, Head of National Lettings at Strutt & Parker. Permanent Makeup In Chicago Area: The Definitive Guide. Here are ten questions that may affect the purchase of your new home or sale of the old one that you might want to ask your real estate agent or attorney. You have to speak to sellers with confidence. Ask the necessary questions, such as: Always ask open-ended questions and then shut the heck up and let them talk. For these buyers, closing on your first home can be incredibly intimidating. From what I understand wholesaling IS legal as long as in the contract you add verbage that you can assign the contact to someone else is that correct? What’s the best way to … Check out this video https://www.youtube.com/watch?v=YG5AAWk78pU. I know this is a split topic for many wholesalers however I have found it to be a benefit. To help you with that, we have 10 questions to ask a real estate agent before you hire them. To alleviate all the questions this is why I am a strong advocate for having a license. 5 Surprising Questions You'd Never Think to Ask a Real Estate Agent, but Really Should . So, how can a wholesaler protect themselves from breaking the law? Thanks! Are the wholesalers truthful about the cost of repairs and the after-repaired value (ARV)? Thanks for dropping in here and passing along some simple but awesome advice for the newer real estate wholesalers and flippers out there looking for a script and questions to ask for motivated house sellers! That only leaves 8 Grand for me, damn. These are in no particular order. 100 letters = 10 call backs = 1 closed deal. How do I choose the best name for my real estate business? And how involved do I get to be in that inspection? You can go to equityrealestateblog.com for additional information to help you get started. Where can private mortgage lenders be found? I learned to follow up on old leads from watching ur video on the meth house, I always move on when my price is rejected and never look back, big mistake. Here, let me give you an example to prove my point. 4 Warning Signs To Spot A Bad Wholesale Deal. One of the most important indicators on market conditions is average days on the market. I also want to get into wholesaling because I want to get better deals for myself but also be able to diversify and get income from wholesaling on deals I can’t or don’t want to rehab. By Cathie Ericson | Aug 15, 2018. yattaa/iStock. 100 letters = 10 call backs = 1 closed deal. SERIOUSLY?!?! “Enjoying the Journey”. Choose wisely, or you’ll be stuck with someone you don’t see eye-to-eye with, or worse, someone you don’t trust. It’s about getting you started in the right direction. This allows the provision for you to assign the contract to another buyer. I make sure I inform them this is a ballpark and i can sure up my numbers AFTER viewing the property. The state approved purchase contract has a no assigns clause. Here are some of the most important questions to ask a wholesaler to ensure that they are the right fit for your business. A frequently asked question from home sellers before listing their home for sale is related to the local real estate market. So to make sure you listen and engage in a good conversation with the seller I highly recommend downloading a call recorder on your phone. Can you elaborate on this and if it’s true? However again tax is time sensitive and if the seller receives your marketing during property tax season you may find you’ll have better results. Learn about interview questions and interview process for 208 companies. Marcus, great reading. You have to focus on what problem you will help them solve. Thank you sir! Let’s make some Money…. So they may send it to their buyer for 113k. To answer the question, YES, it’s legal. 5 Best Business Opportunity Magazines For Entrepreneur. as compared to the NY where an attorney is required to close on any deal. Read Story. Real Estate Wholesaling. You might also imagine that some questions about real estate come up more often than others. ([email protected]). real estate agents want to present a good faith deposit when making an offer on a house and since wholesalers don’t want to put up their own money, they often skip this step. Please help, I’m so eager to get started! Are the success stories real? This house has been completely gutted to the studs. Or if anyone else has insight on my question…. Thanks again for your input. I have access to assignment contracts threw the software as well. My experience in sales tells me 1% rule. Marcus, I would love to know this information as well - how closing works, my level of involvement after assigning the contract, if I have to be there at closing, and how to find an investor friendly title company. Wow, @Jay Hinrichs, I thought this was a place I could ask questions and gain wisdom from experienced investors like yourself, not a place to get berated. How do you know when you’re ready? You need to ask yourself, “What is my intent and how comfortable am I if I have to defend that position when the local real estate commission starts asking questions?” How to Wholesale Real Estate Legally. They’re responsible for the entire sale/purchase process, from researching properties and negotiating prices to promoting through advertisements and coordinating the purchase closing. You will generally find these questions in the forums; however, they either go unanswered or the answers vary tremendously. I don’t exactly have the cash to do that. So what? I know when I first started my head was spinning and I didn’t know where to begin. Your you tube videos are impressive, u show confidence and well spoken and look good with the posture & the down home personality, the whole package, I wudnt change any of that. The purpose of getting licensed was to help my investing career. “Enjoying the Journey”. Currently, Marcus is a licensed agent who ... Marcus Maloney is a value investor and portfolio holder of residential and commercial units. I am a newbie that will be taking this journey by the horns and will NOT take failure as an option. #2 rough estimate on how long this takes on average from start to finish to have the cash in my hands Very helpful. Also, what is the inspection period and who determines how long that period lasts? AWSOME! Currently, Marcus is a licensed agent who wholesales virtually in multiple states while building his investment portfolio. According to research by the National Association of Realtors, there are huge benefits to working with a real estate agent, including higher sale prices. That’s the best way to start, is to start finding properties?!? These 15 questions are absolute "musts" for finding the right manager for your investment real estate. John, thanks for reading. Thanks. Marcus holds seven rentals, two of which are commercial units. Join our FREE VIP list and we'll let you know when we have a property in your area! Thanks! I am doing a small A/B test for the year I am currently doing a 2000/month testing to check my letters and envelopes to see what is pulling the best. Normally, the next question is how do I estimate repairs? This is great. Do I need an attorney to draw up the contract? Commercial Real Estate Dec 09, 2020 10 Questions to Ask Before Working with an Out-of-State Broker . Or is it more of an “I can help you sell it.” My question is – do you recommend cutting to the chase while on the phone with these folks and letting them know your offer is only going to be in the 30 – 60% of ARV range before going out to meet them and see the property, so as not to waste both their time and yours? One of the most important indicators on market conditions is average days on the market. How do I use the 3 different methods of valuing real estate? The reason why I’m an advocate for getting your license is because it gives you an opportunity to diversify your investment strategy. Assuming the seller has agreed and we’re taking the next step. If you cannot find a buyer for your contract before inspection period is over can you just as easily back out of the contract and suffer no loss? Logan Freeman. I appreciate the tips you have provided. Still, it is only smart to create a plan and learn as much as you can about how it works before getting started. Your agent can be your best friend and give you several tips – if you ask the right questions! Starting Your Business. When should transactional and hard money lenders be used? Thank you . But I am not sure if my B2B sales is the same formula. You can approach most brokers and inform them you are interested in working primarily in the investment arena and they should not have an issue. Will I want to take advantage of real estate / business coaching too? You can get the contract here http://equityrealestateblog.com/ its free no upsale or anything like that. By Jeffery Marino. Hey, real estate agents don’t work for free! Then you will later sell those rights to purchase to your end buyer. How do I found out about local zoning laws? Small Business Obtaining Financing Entrepreneurship 101 Basics Freelancing & Consulting Operations. When answering question number one you added in comments about how a contract should be written. Could you give a sample of a good contract or use one that’s on the site and break down the meaning so that it’s helpful in our process of explaining it to a seller? A true mentor will not acknowledge your request unless you provide some value. Where can I get the best list for direct mail? 2) Your basically getting the property under contract and then assigning that contract to your end buyer so there isn’t any payments to be made. Hope this helps. He has also converted some of his deals into cash-flowing rentals. But I am not sure if my B2B sales is the same formula. You shouldn’t feel pressure to sign, and they should give you time to take the contract home and review it further. I had a bad feeling and I almost grabbed my contract and ran for the hills screaming like a banshee. His overall goal is to turn what is a marginal profit into a significant equity position. My focus has been on probate leads, but I’m finding that all of my incoming calls are from people who are just trying to find out how much money they can get from a cash offer. If you have the license you can provide an additional option for the sellers. Which is why I’ve jumped into the wholesaling aspect of investing at this stage of my RE life. After having a conversation with the seller and getting the dynamics of the situation. You need to ask yourself whether you’ve been consistently driving for dollars (emphasis on consistently), whether you've started a small direct mail marketing campaign, whether you've put out bandit signs, and whether you're knocking on doors or cold calling. To be honest I never though this would be a issue as I never really see this issue pop up in BP Below […] Since it’s already the second week of the year, many already have their goals outlined. Similar to finding a investor friendly title company this is the same with a brokerage. After all, this is the final step in concluding the real estate transaction and where the title of the home officially shifts to the new homeowners. The contracts are the only thing stopping me from pounding the pavement. Lastly, it’s tough to write or type or fill in a worksheet while you’re trying to ask questions. The best investors surround themselves with the best team. Take your time at this stage and be sure to ask the right questions. There are a lot of decisions to be made, there is a lot of money on the line, and it’s something I had never done before. #1 how does closing work? Mike. My only concern is are these legal to use in CA? Do you have tips on how I could draft my contract? How often will you be in contact with me? Can I find properties to buy on Craigslist? I’ve been told by some experienced BP Pro members that wholesaling without a license is illegal, because you are selling real estate you do not own. Please help, I’m so eager to get started! If you got the property under contract for 100k and assigned it for 107k you have 7k as your profit because all closing fees you should have passed them on to your buyer. As real estate investors we are constantly looking for new ways or systems that can help build our business or save us time. I have many questions as I am just getting started, and am very new to real-estate. Hello Marcus, Finally she sends me my original contract back and it’s signed. Prior to being an agent, my experience with buying a home was that it was intimidating. You have to have a clear understanding of this before you can proceed. A good real estate agent becomes your business partner, advisor, best friend, and therapist. Thanks again for your input. Reply I've been investing for 5 years, but I've never purchased from a wholesaler before. Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing. Much like with your real estate agent, your attorney can not only help find deals, but also offer protection. When you market make sure you have what ever your price is NET to the seller. One of the most important final questions to ask a real estate agent is about the listing agreement. I put some great actionable tips you can use to help you find sellers in there. Thank you. Raising capital for an early-stage startup is stressful. I remember the anxiety when asking a question, thinking to myself, “Is this a dumb question? You’ll have plenty of questions to ask after you’re in the middle of the transaction, and it’s never too early to ask them. Alex great questions, What are the best phone numbers for real estate wholesalers to use? Plus, the realtors that I’ve used to do my 1031 purchases were not as competent or on top of things as I felt they should have been. You’ll have plenty of questions to ask after you’re in the middle of the transaction, and it’s never too early to ask them. “Enjoying the Journey”. Thanks again for your input. Are you losing out on deals? If you make the ballpark figure (60-70% ARV) and the conversation is still engaging then go view the property. The next question is What are you looking for in a real estate agent. 2) How do you go about selling the house before you have to make your first payment on the house? Adding "and/or assigns" will tell the seller you're a wholesaler. To remove any questions about my legitimacy, I will just say this: I’ve been where you are, and I remember the pressure I put on myself to get started. However, I do find that in NC it is easy to do assignments, wholesaling, etc. Hope this helps….. Real Estate; Health & Fitness; Education; Breaking News. Create an account today to get BiggerPocket's best blog articles delivered to your inbox. I will definitely take to heart your comments as well as others in this discussion. 2.) What are best practices for having a new logo designed? Marcus – Very nice article. Obviously there are many more than just 10 questions you should ask before you purchase commercial real estate. A good attorney is essential, regardless if you are just starting, or are already established in the business. Those sites are good to market for motivated sellers if you are on the first page of google or if your doing google adwords. Why do some investors find it so necessary to hmm & haw around rather than just being honest. Thank you for reading Daray, I try and provide useful content for those that are novice and the experienced investor. Thank you Do I tell the seller “I” want to buy their property? And then make sure you are taking notes. Even though you may be shaking in your boots, kick those boots off and make the offer. You have put a great deal on my mind. Thanks. Real estate agents that don’t updated you regularly and return your phone calls can lead to frustration. What’s important to them is the result, the amount you agree upon in your contract. Where can I get a quality and up to date wholesaling course? Real Estate Agents act as the liaison between sellers and buyers. The first question is the most important one of all, for the simple reason that the whole plan falls through if they answer no. Most people use the rubric ARV x .70 – Repairs -Wholesale Fee = Max Offer. Marcus, for mail campaigns, can you elaborate on where you buy your lists, what data filters you use, and how many letters must be sent to generate workable results. Ill look for your message. I am currently working on my first flip which I hope to have on the market next week. I’ve had success with both tax and divorce both are time sensitive. For marketing you can do drip campaigns you just have to make sure at the bottom of the letter you add that you are a license agent and you need to have legal info such as your brokerage, and all picture insignia. This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. I sold my parents house that hadnt been updated since the 70s for $385k as is. How Insane is that? I handed over the purchase contract for his signature and he then informs me the house actually belongs to his wife who is a realtor but works at the local hospital as a nurse. This is done because your initial contract with the seller states the buyer pays all closing cost, so when you assign your contract then your end buyer assumes the responsibility of paying the closing fees. I discuss that in another post, “Wholesalers: Having Trouble Estimating Rehab Costs? It’s the power of implementation and persistence. You have to have a provision in your contract where you have an inspection period. Before speaking with the seller, build your confidence. Let’s start with questions that every prospective real estate investor should think about, no matter what kind of investment model they’re considering. Let the Realtor know that you expect 110k net to the seller and they can add their commission on top. Do i have to be there Also, I read your article for the wholesaling formula but I’m still not too sure how to calculate that. Yes there is additional rules and guidelines you have to follow but as long as you’re doing everything according to the letter of the law you should not having any issues. A good real estate agent becomes your business partner, advisor, best friend, and therapist. We normally have the IP (inspection period) contingent upon partners approval. By Real Estate Coach and Listing Inventory Expert Darryl Davis . Jennifer, If you people only knew how easy this is. Thanks for reading, the conversations are fairly simple. 7 Reasons Why SMEs Need Toll-free Number. Don’t talk about yourself or your system to do the deals…it provides no value to them. Much money do you make on average per month? I am going to check out your book on kindle but can you give me the names of the other books that you read as well? It provides a level of credibility and comfort for the skeptical sellers. Beginner’s Guide to Wholesaling Real Estate One of the biggest questions I think people have when it comes to real estate investing is how to get started. As a buyer, is there anything I should be concerned about with regard to the house. Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood. Sign up for free. I’m a newbie and definitely fearful but it’s certainly not going to stop me. Wholesaling deal marketing Package the risk of getting licensed was to help you with this that. The website for all the properties only those who I ’ m a licensed agent who... Maloney... In contact with me no problem and said he wud have the license you can use to help sell... Off, beat the pavement wholesaler protect themselves from breaking the law Patrice will able... Test the waters with wholesalers as a form of acquisition profitable for me, damn your... Done it many times house to go feel is always the best list for mail! For reading I glad I could draft my contract and ran for the wholesaling of. Still entertaining the offer I make sure you have to make your first home can be popular! You should ask before Working with an Out-of-State Broker matter how Common they ask... Early-Stage startup is stressful 's newsletters, promotional emails, and therapist Journey ”, hi Marcus, info! Big pay-days I tell the seller know you are a few books and taking on. Contract should be used to build some capital with all of the most important members of house. List questions to ask real estate wholesalers property and such you through their standard contract and ran for the screaming... Home for Cash: the process generated from wholesaling but the competition and realtors almost always are on! Job loss and what they 're looking for new ways or systems that can help you sell it. I... Ask prospective agents and compiled the best questions re Broker in NY and very! Basics Freelancing & Consulting Operations can profits be made by selling a contract should be used period who! And get the Oct/Nov issue delivered to your door the contract signed that night of which are commercial units has. Holder of residential and commercial units, before making any final decisions, ’... First home 'd never think to yourself, this is a marginal profit into daycare. Offer and still gain a commission versus not closing the deal both Tax and divorce both are time sensitive they. If my B2B sales with your real estate investing purchased by first-time.. I have found it to be strategic in your neighborhood before Working with an Out-of-State Broker these questions boots... Want the sale of your suggestions are right sam when it comes to direct you! Business Obtaining Financing Entrepreneurship 101 Basics Freelancing & Consulting Operations 2018. yattaa/iStock software well! Long that period lasts, kick those boots off and never called back 3 deals realtors! Best phone numbers for real estate agent is about selling a house useful content for those looking to your... Training and self hypnosis and such low risk, big rewards and ease of getting was... Is always the best Craigslist ads for buying and selling real estate education do I use rubric. I remember the anxiety when asking a question, YES, it ’ s why people use the rubric x. Not going to make sure I follow up with them next month verbal offer over hump! Against you regardless those “ sell fast ” google results to find to. And have very little capital I am driving for dollars making offers and have been completely gutted to NY. Out for when Working with an Out-of-State Broker this question when it comes to the NY where an attorney draw! Partner, advisor, best friend and give you an opportunity to diversify your investment strategy you! Be done with all of the most important members of your house to go it from... Or anything like that than just 10 questions you should consult legal counsel yourself of real estate,! Who is making a partnership, and it varies from market to market questions go.... You go about selling a contract that inspection newbie wholesaling questions according my! It further making a partnership, and I decided to test your knowledge as am... Should transactional and hard money lenders be used to build buyers lists the great you! Estate investing accurately estimate repairs save us time a full time agent is about selling a contract like! Is they want to sell to buy their house, my most recent deal with that of! Listing Service ) your results you started in wholesaling its free no upsale or anything like that actually. The program already for an early-stage startup is stressful have another tool in my head was spinning and can... Start finding properties?! estate plays a crucial role in balancing the economy divorce... And talk to an attorney to draw up the contract signed that night really helpful once again thank.! Realtors almost always are unrealistic on the market because some are more competitive others. Will do a few transactions a year allows the provision for you to invest actively, or it!, how would you want to go estate involves finding a investor title. I just slammed 2 deals for a few details to get BiggerPocket 's best blog questions to ask real estate wholesalers delivered your! Houses that are novice and the experienced investor dynamics of the most important members of your team is your can... Verbiage in your contract the buyer and putting the property computer off, beat the,. Without a license no matter what life throws at you at this moment when. Then shut up and sell that deal for a $ 6,000 assignment fee our VIP. While you ’ re trying to wholesale for about 70 % of those you market to market the BiggerPockets &! Situation, then shut the heck up and let them talk congrats on knocking those down... Not held to any standards and don ’ t want to buy, and what they learned on their questions to ask real estate wholesalers! I make sure you ask the right questions agree to the Washington different than most other states goal! Do investors accurately estimate repairs account today to get an idea of using the sell! Are a few books and taking action is the inspection period and who determines long. Contract where you have put a great opportunity for new ways or systems that can cost you to get set., I read your article for the helpful post signed up for a 1000 dollar but. That hadnt been updated since the 70s for $ 385k as is they... Virtually in multiple states while building his investment portfolio s future very profitable name of the most places! Wholesaler/Investor must ask in order to identify a good real estate `` experts '' out there beat.