Back in the real estate game and looking for junk removal companies nationwide! - Page 3

Originally Posted by TheFatMan

I have this divine gift for seeing through BS. I'm amazing at it. It's like this home skillet. Dude be driving through the suburbs after a natural disaster or through a poor side of town where all the windows be boarded up. Notices a home still standing. Checks the public listing and is like "Hey dawg, the bank owns that property or that beast is in foreclosure, or it's in a transitional period. Let me call my money guy and get this place picked up cheap." The money man is like "Oakely Dokoley, OK, however you can have my money for a couple weeks, but it comes with a high arse interest rate Brah. No surfing on the job with Keanu Reeves yo diggity!" then the fella driving through the neighborhood tracks down the institution or entity that has the property and is like "Yo, me and my dude want to throw down on this property. Don't worry, we going to buy it low and sell it high." That's the bridge part... So this fat cat with all his money collects this big ole interest payment for loaning out his money for a couple weeks, this poor fella sells a property that he got for cheap because it was in fact, crap in the first place, for a substantial sum of money to make him a little cash... to someone with poor judgement who hopes to fix it up and live there or sell it for an even higher price, and then the cycle continues. You don't need a license to do this, just collateral to get a loan from a money man or "lender", and collateral isn't much for a buying a foreclosed home. You could probably use a 88 Oldsmobile Century as collateral. However, these homes are rarely up to housing codes, rarely inspected, and are typically the places where you can buy some crack or score a girl with loose morals for a pack of smokes and a 40 of some Colt .45

That is putting wholesaling in a very bad light. Wholesaling is no where near what you are trying to make it out to be, really.

You can wholesale any property, even commercial. They can be total crap, or ready to move in properties.

Yes, sometimes the homes are indeed bought at a low price, but that is because sometimes they need 10's of thousands in rehab cost.

You are also confusing wholesaling with bank foreclosed properties aka REOs. Those are mainly picked up by landlords/rehabbers.



Wholesalers can indeed wholesale those properties as well, but they are sold by banks for pennies on the dollar to clear their bad debts off.

Wholesaling got invented when people wanted to sell their homes, and they can't sell on their own, because they might not know how, or through a realtor, because of the properties needing work done to them.

Most individuals, need homes they can move into now, not 90 days from today.

Also, regarding the transfunding, and hard money lending, there is none of your personal collateral involved. They lend based on the deal. As long as there will be enough equity to justify it, and the numbers work for them, they lend you what you need.

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.

Good luck george

i will safely say i am never investing in real estate again i"ve lost my shirt once to often to make it worht it it"s easier to invest in hard assets and businesses

BTW i couldn"t ge your links to work to add liberty exceptional and AAA

Originally Posted by Libertytow

Good luck george

i will safely say i am never investing in real estate again i"ve lost my shirt once to often to make it worht it it"s easier to invest in hard assets and businesses

What type of investing were you doing?

Originally Posted by Libertytow

BTW i couldn"t ge your links to work to add liberty exceptional and AAA

Try this: Junk Removal Contractor

Originally Posted by Trot

Well congratulations!! Sounds like a fun venture.

Thanks. Everything is fun or can be if you let it lol

Originally Posted by heeroyue2002

too much bash sessions. in most forums you would get banned for that.

Just depends on how the powers to be look at it. Every forum is different in how they handle things.

Originally Posted by Gangel

Yes, there was some bashing. But too many times most forums end up being candy coated sugar plum fairy ideas. Some people need to say what is on others minds. I'm that guy. I mentioned about someone else's "business" not being quite right... turns out maybe I was right about that too. How many times can you congratulate a guy for making the same mistakes? And no, I'm not saying GeorgeB is making mistakes. Or even the same ones. I'm merely pointing out the fact that you all give out the hand shakes and back pats all day long, but that doesn't keep the business going. Kind of like "I made 3 grand selling my copper today". They don't tell you they have a grand in it just buying it, a warehouse to store it, a grand in rubbish costs and then insurance and employees on top of it all.

If you buy a business on a land contract, over 10 years, when does the business make money? I say the business doesn't make money until all debt is paid. But others will say it's what is on the cash flow sheet at the end of any given year. I also believe a business can't make money every single year. And a business makes NO money the first year. But that's just my opinion.

Gangel:

You and I might get onto one another's feet from time to time, but I do appreciate the honesty. I dont like anything sugar coated myself. I will take the truth all day, every day.

Like I always say, your entitled to your opinions, just like anyone else around here.

You are correct, that depending on the business, it does sometimes take a few years before the business sees a profit. Everyone's definition of a business making a profit, is all different. My in laws have owned their shop for 6 years I think? And just starting this past year, they are making a profit. My father in law sometimes works 12+ hours a day, to pay 2 mortgages (shop rent and house), and 2 sets of utilities. All that alone is easily $4,000 to $5,000 per month.

Their business makes over $150,000 a year, but even now, most of that goes to material, labor, and their bills. They make enough, but everyone thinks they are rolling in cash, when they arent really.

In regards to me personally, I have always run bushiness's primarily online, and my customer base was billions of people. Not saying I had billions of people, but anyone with a pc and internet was potential customers.

First business I have ever owned offline was doing junk removal. Even doing real estate, most can be done via internet, phone, and fax. You hardly ever see the properties face to face.

Originally Posted by Re-cycler

The only issue I see would be that they don't get the capitol gains tax so if there aren't laws against it there probably will be in the future.
It's like skipping vehicle titles if you sell so many cars a year you are required to be a licensed dealer.
All states may differ in the laws.
I think what you are doing may just be playing a loophole that could close any time but as long as you claim the income you will probably not have any problems.
We all have to do what works to make a living

To my knowledge, there has never been a limit to how many homes you can wholesale.

As mentioned, most buyers, will buy and rehab, and then resell for the market value, and there is no limit there either.

Congratulations on the new gig, I like the new logo. I've signed my company up on the website and let ya know if I get any bites. I have no clue what it is that your doing and frankly I don't care. Far be it from me to judge another man's endeavors, at least your trying to get something going. I know this: when I first got my LLC and formed my company, got insured and licensed you were the first (and possibly the only) one over to like my biz's Facebook page and I certainly appreciate that!