Back in the real estate game and looking for junk removal companies nationwide! - Page 2

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 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.

Originally Posted by Gangel

It's done everyday. Professionals who buy and sell have a real estate agent who does this for them. It's not a big deal. I guess that's where I get the naive thing from. Hell, here the agents will probably help you move into your house too.

Just not sure George is a professional

Originally Posted by mikeinreco

sounds like a scam

Google wholesaling real estate, if you like. I am sure you will find more than enough information. I am sure there is scammers out there, like anything in life, but the technique, and I are not a scam.

Originally Posted by Gangel

It's done everyday. Professionals who buy and sell have a real estate agent who does this for them. It's not a big deal. I guess that's where I get the naive thing from. Hell, here the agents will probably help you move into your house too.

That is true, but there is also tons who do it themselves. They might have them on their team to handle the selling for them, perhaps, after rehabbing, but generally they buy with no realtor help, unless you might be doing REO's. Then in those cases, you might be using a realtor on both ends.

Originally Posted by mikeinreco

Just not sure George is a professional

That is your opinion, and your entitled to it.

Guys, here's the thing. You all have your opinion of me from all this time in the scrap metal/junk removal business. I can understand that, because I have been learning and improving since I started it all.

However, understand this. This is not my first time involved with real estate. Also, I would not be involved in anything shady, scammy, or something that would require me to have a license, and can land me in jail.

I have a family to think of, 2 girls who depend on me to provide for them.

I started this thread for 2 reasons really.

1. To let everyone know that I was back into and it is a new chapter for me.

2. To give everyone here an opportunity of increasing their business, by providing their info, on the site so potential customers can contact you.

That is all. Not to try and sell anything, to have a political or any other debate. Not to argue, or bicker, or anything.

I can understand your concerns. However, I recommend you Googling "wholesaling real estate" and it will help to understand and comprehend.

Good night.

good luck George and goodnight

Originally Posted by mikeinreco

good luck George and goodnight

I was going to "thank" your post, but I apparently dont have an option for that, so thanks.

You too.

Originally Posted by Gangel

This reminds me of the sign me over the title, I'll go to the DMV quick and put it in my name then we'll go to the bank and I'll take a loan against it and pay you for it

In wholesaling, there is no loans. Except of course if you use trans funding or hard money lending. Even then, it is not a long term loan. More of a short term loan, that is paid off 100% when you sell the property to your cash buyer.

Congrats, George. I have a friend who buys tax liens. Works well for him. Different states have different laws about them but, basically, you give the state the money owed in back taxes. If the owner pays during the grace period, he gets his money back, plus interest. If not, he can put the property up for sale. He can't lose.

Yeah, we should be encouraging entrepreneurship, not beating people up over their ideas. You go, George!

Originally Posted by Mick

Congrats, George. I have a friend who buys tax liens. Works well for him. Different states have different laws about them but, basically, you give the state the money owed in back taxes. If the owner pays during the grace period, he gets his money back, plus interest. If not, he can put the property up for sale. He can't lose.

Thanks Mick. Appreciate it! Yeah, tax liens is one form of real estate investing. One I will be involved in at some point, but not anytime soon.

You are very much correct on how tax lien sales work. The great thing is, if the owner does happen to pay during the grace period, is you, as the buyer, get your money back as well.

Only thing that sucks about tax liens is the grace period most times. Plus, with tax liens, you never know what could be inside. It is almost like that "Property Wars" tv show. Bidding blind and dont know what to expect. At least with wholesaling, you can see inside and out before making an offer so you know first hand what is needing to be done.

Originally Posted by AuburnEwaste

This is the main reason I have chosen not to participate much here. If you try to share your ideas/thoughts with people, they just beat you up about it. George is a business owner and works for himself, which is a hell of a lot more than most of the people here can say.

I have worked for myself longer than I care to admit to. I have also worked for other companies as well, to keep myself balanced sometimes, and have also liked that as well.

People will always have their opinions and especially about things they dont fully understand. I know what I am doing and what it will do for me, my businesses, and my family, so that is all that really matters.

Originally Posted by BurlyGuys

Yeah, we should be encouraging entrepreneurship, not beating people up over their ideas. You go, George!

Its an idea that is now action. Thanks Burly. Feel free to visit the contractor link and enter in your information if you like.

I know Florida has several wholesalers, 2 of which I follow all the time, and Michigan has a couple as well.

Originally Posted by Trot

Congratulations!! Glad you were able to get back to doing something you wanted. Glad you also found someone nice enough to help you and not charge you an arm and a leg. Sounds like it could get real confusing real fast. Is this similar to the we buy houses for cash companies?

It is only confusing at first, if you dont fully understand it. However, there is several professionals that are actively doing deals and making good, decent money. In wholesaling depending on the size of the deal, you can easily walk away with $2,500 and up. I know a few who have made over $10,000 BUT again, it just depends on the size.

My mentor right now, averages $5,000 to $8,000 per deal, and told me the highest he has made on residential is $15,000.

But even if you do 3 deals a month at $2500 that is $7,500. Your time invested on each property varies. Some can have a property sold to a buy within a few hours, others might take a few days.

As you go along, you weed out your tire kicker buyers, and stick to the real players (which is a lot of them), and as I mentioned, it is as easy as sending an email or facebook post out and getting your offers.

You also put a CL ad up for that area, to attract any landlords or rehabbers looking for new properties. You will also get from time to time other wholesalers who will call or email saying they have a buyer. Then you can decide to JV with them, or wait.

Yes, wholesaling is exactly like "we buy houses for cash" signs. Same thing.

Some, are just actual wholesalers, and others are landlords and rehabbers looking to accquire more properties.