First week wholesaling... what do you think? - Posted by Frank, SoFla

Posted by Jeff Tx. on April 15, 2007 at 13:25:59:

Kristine, I just wanted to say thanks for your post here.That answered my question and I was just browsing.
Jeff S. Tx.

First week wholesaling… what do you think? - Posted by Frank, SoFla

Posted by Frank, SoFla on April 13, 2007 at 08:33:03:

I appreciate the insight and willingness to help from the people in this newsgroup, so it was the first place I thought of to discuss what I have been doing this past week. I would appreciate comments on what I am doing, what I could be doing differently, or what I should try to as I start my career.

Just for clarification, I work as a realtor, representing an LLC cash buyer.

On building my buyer’s list:

The office I work in as a realtor, had a nice handyman deal which I could pitch to investors. What I did was place more than 8 bandit signs in busy intersections, and I would get the info of everyone that called. This gave me good results, and I built a list of about 20 investors, with a few that are very good. I almost sold the house too!!! The investor was in the office ready to draft up a contract, when she told us she wanted a contract for $100k back at closing. NEXT!

I will also visit my local REIA, and talk to some friends of mine that do hard money. This side of the business doesn’t worry me.

Looking for properties:

I am a realtor, and the only thing I have worked with to find properties is the MLS. In SoFla, more and more bank owned/foreclosed houses are showing up, and there is a wealth of houses that need rehab.

I don’t have a problem coming up with figures like ARV, or how much a house needs in repairs. This first week, I have inspected about 9 houses, and have drafted 7 offers, starting at 60% ARV.

What’s my biggest problem? dealing with listing agents and the banks, so far. Since all the properties are from the MLS, when I have gotten angry calls from the listing agents, I always have to remind them how they have to do their jobs and present the offer, I mention how many houses are being sold within half a mile, I tell them about the deplorable conditions of the house, I reaffirm that my buyer is a cash buyer, and in the end I just tell them to let me know if the seller wants to negotiate. They tell me they don’t. I plan to keep calling them, until the house is off the market.

Evidently, I want to start putting houses under contract, ready to be assigned. I’m not desperate (it’s my first week), but I want to know if this sounds like a decent approach to wholesaling.

What can I do besides the MLS? I don’t really have a budget, but I do have access to bandit signs that I can place.

What are the best arguments to use with banks or listing agents, to get them to sell a house for less than 67-70% ARV?

Again, I would really appreciate any imput.



Re: First week wholesaling… what do you think? - Posted by Natalie-VA

Posted by Natalie-VA on April 14, 2007 at 09:31:14:


I agree with Joe that you might be barking up the wrong tree. Not that I haven’t found good deals on the MLS, but I’ve gotten most of mine elsewhere.

The thing that concerns me is who you’re representing. Are you looking to assign contracts on your own behalf or for this LLC? Do you have an interest in the LLC? I think it’s important for you to figure out if you’re acting as an agent or as a principal. It makes a difference. Also, I don’t know that a lot of banks will accept an assignable contract.


Re: First week wholesaling… what do you think? - Posted by Joe Kaiser

Posted by Joe Kaiser on April 13, 2007 at 12:00:30:


Nice job getting things started.

Feedback is important. It’s tough, in the beginning, because you
probably don’t know enough about the business to appreciate the
feedback and how to use it, so let me give you some advise.

When you’re getting angry calls, you’re probably not on the right track.
Angry calls would be considered feedback, and you having to remind
agents how to do their jobs probably isn’t the fine-tuning that needs to
be happening.

Finding deals seems to be the issue and I suggest looking at some
place other than the MLS is a good way to tweak your system. We do
the underground thing, focusing on the subterranean marketplace
(SubT). That’s where the real deals are hiding.

Those are situations where property owners are faced with agencies
coming down on them to get their properties squared away. Or they’re
getting sued because they’ve made a mess of things or have too many
cars laying around or whatever else.

Or, their properties are so run down that neighbors are demanding
they get fixed and code violations are stacking up and the place is
deemed dangerous (and some agency is starting to talk about tearing it

Those are people who will deal, who won’t be angy with 60% proposals,
who don’t need to be reminded about what their job is or is not.

Think SubT, because that’s where real deals can be had.

You do that and you’re no longer dealing with angry agents or having
to reaffirm your position about anything. Instead, you’re solving
problems and making things happen where people are actually glad
you showed up!


Re: First week wholesaling… what do you think? - Posted by Bob Smith

Posted by Bob Smith on April 14, 2007 at 14:38:04:

Are partnership or co-owner squabbles good SubT opportunities?

Re: First week wholesaling… what do you think? - Posted by Chris

Posted by Chris on April 13, 2007 at 13:14:39:

I just read this…how do you find those SubT’s?

Re: First week wholesaling… what do you think? - Posted by Joe Kaiser

Posted by Joe Kaiser on April 15, 2007 at 11:45:54:

SubT, by definition, includes a government agency hammering away on
some owner of nuisance property.

There are all kinds of agencies and all kinds of nuisances, from unpaid
sewer liens being foreclosed on to illegal junkyard owners being sued
to clean up their acts.

Think of every agency that, for whatever reason, posts notices on
doors (they come in many different colors . . .) and go figure out what’s
going on there.


Re: First week wholesaling… what do you think? - Posted by Kristine-CA

Posted by Kristine-CA on April 13, 2007 at 20:49:18:

Chris: try reading between the lines on Joe’s post. There is SO much
info there. I also suggest reading all the articles on motivated sellers
and finding missing sellers in the articles section. Between searching
the archives here and the articles section there is a wealth of ideas for
finding motivated sellers. This message board and its archives may
well be the best resource of info on this topic. But you do have to work
for it.

The good news is that when you read something that grabs your
attention or you want to know more about you can ask specific
questions. And then when you find tune your approach you can check
out the many courses and books for sale here.

Finding motivated sellers and solving their problems is what it’s all
about for me. I learned most of it here. Happy reading, Kristine

Re: First week wholesaling… what do you think? - Posted by Joe Kaiser

Posted by Joe Kaiser on April 13, 2007 at 13:57:24:

Chris, it’s all public record when it comes to dealing with government