Wholesalers and appraisers

[gorillakimchi]

I was invited for a family dinner with few other friends last night and heard some interesting stories.

My friend's uncle was there and he said he's working in real estate field so I assumed he's an agent or broker.

As we all know, they are good at talking with people and start telling us how he's doing. He said he's a wholesaler.

Later I figured it out he's buying old, bad house and fix it into a good condition then sell. ( I didn't know what wholesaler is so just **** up and smiled )

He finds bad houses and deal with the owner and then sell it to other agents or brokers who wants to flip. He said Min profit $10,000 or more.

Interesting part was how he finds those deals. Maybe seniors here already knew but it was kinda interesting to me. One thing he told us that he buys probate list from someone(?)

or go to a court to get a list and then call all those people randomly and saying I will pay cash for your house.

Seems pretty simple and straight forward but he said it's not easy process. After I get back to home, I started thinking what he said.

To me, what he's doing is totally opposite then what I do because he buys old, bad houses who wants to sell immediately,

but what I do is valuing properties who wants to live longer(refinance) or just purchased. Am I right??

If there's any common things, I think wholesaler could be a good side job.

Is there any seniors doing flip or wholesale as a side job? I'd like to here some stories if can

 

[Chandler]

I was invited for a family dinner with few other friends last night and heard some interesting stories.

My friend's uncle was there and he said he's working in real estate field so I assumed he's an agent or broker.

As we all know, they are good at talking with people and start telling us how he's doing. He said he's a wholesaler.

Later I figured it out he's buying old, bad house and fix it into a good condition then sell. ( I didn't know what wholesaler is so just **** up and smiled )

He finds bad houses and deal with the owner and then sell it to other agents or brokers who wants to flip. He said Min profit $10,000 or more.

Interesting part was how he finds those deals. Maybe seniors here already knew but it was kinda interesting to me. One thing he told us that he buys probate list from someone(?)

or go to a court to get a list and then call all those people randomly and saying I will pay cash for your house.

Seems pretty simple and straight forward but he said it's not easy process. After I get back to home, I started thinking what he said.

To me, what he's doing is totally opposite then what I do because he buys old, bad houses who wants to sell immediately,

but what I do is valuing properties who wants to live longer(refinance) or just purchased. Am I right??

If there's any common things, I think wholesaler could be a good side job.

Is there any seniors doing flip or wholesale as a side job? I'd like to here some stories if can

I deal with wholesalers regularly for investment properties. Basically, they use software that provides lists of likely sellers, distressed sellers, etc. They then negotiate a deal with the seller but never actually buy the property. After a deal is negotiated with a seller, they try to find buyers at "x amount" (say $15,000 above the price negotiated with the seller) then when the real buyer closes, the wholesale pockets the $15,000 difference. Usually these properties need work and would not qualify for financing and the sellers don't have any cash for repairs.

It takes a special personality to be a wholesaler and make cold calls (many employ "bird dog" trainees to make the contact). Think car salesman type personality. An acquaintance of mine that does this seems to work part time and has a house worth well over a million, must be doing ok.

 

[Russ Kitzberger]

Wholesaling has been around for awhile. They get purchase agreements on houses then remarket their interest in the purchase agreement.

There is a double closing and they reap the profit between the net of the two prices.

$10k is a lot, but perhaps you are in a higher value area.

Sellers get burnt by wholesalers though, as they sometimes lack the ability to close the deal and there is little recourse for time wasted.

I deal with wholesalers regularly for investment properties. Basically, they use software that provides lists of likely sellers, distressed sellers, etc. They then negotiate a deal with the seller but never actually buy the property. After a deal is negotiated with a seller, they try to find buyers at "x amount" (say $15,000 above the price negotiated with the seller) then when the real buyer closes, the wholesale pockets the $15,000 difference. Usually these properties need work and would not qualify for financing and the sellers don't have any cash for repairs.

It takes a special personality to be a wholesaler and make cold calls (many employ "bird dog" trainees to make the contact). Think car salesman type personality. An acquaintance of mine that does this seems to work part time and has a house worth well over a million, must be doing ok.

I have a Real estate sales license, so I have steered clear due to ethical concerns pertaining to the duty of fairness.

I always wondered how Real Estate agents say there is "no inventory" but wholesalers seem to find inventory.

 

[Chandler]

Wholesaling has been around for awhile. They get purchase agreements on houses then remarket their interest in the purchase agreement.

There is a double closing and they reap the profit between the net of the two prices.

$10k is a lot, but perhaps you are in a higher value area.

Sellers get burnt by wholesalers though, as they sometimes lack the ability to close the deal and there is little recourse for time wasted.

I have a Real estate sales license, so I have steered clear due to ethical concerns pertaining to the duty of fairness.

I always wondered how Real Estate agents say there is "no inventory" but wholesalers seem to find inventory.

I'm a Realtor as well. Wholesalers are a good source of properties for sure, you just have to be careful with repairs. I definitely don't have a cold call type personality, plus wholesaling doesn't feel like much fun. I'll stick to my 2-3 rehabs a year that actually give me enjoyment along with a few extra bucks if I'm lucky

 

[gorillakimchi]

I deal with wholesalers regularly for investment properties. Basically, they use software that provides lists of likely sellers, distressed sellers, etc. They then negotiate a deal with the seller but never actually buy the property. After a deal is negotiated with a seller, they try to find buyers at "x amount" (say $15,000 above the price negotiated with the seller) then when the real buyer closes, the wholesale pockets the $15,000 difference. Usually these properties need work and would not qualify for financing and the sellers don't have any cash for repairs.

It takes a special personality to be a wholesaler and make cold calls (many employ "bird dog" trainees to make the contact). Think car salesman type personality. An acquaintance of mine that does this seems to work part time and has a house worth well over a million, must be doing ok.

Thanks for your explanation! That's what exactly he said . Because we see properties everyday for work, I was wondering if there's any way that we could find a good source of flipping houses like wholesaler does. He said probate list cold calling is just one of his technics.

 

[gorillakimchi]

Wholesaling has been around for awhile. They get purchase agreements on houses then remarket their interest in the purchase agreement.

There is a double closing and they reap the profit between the net of the two prices.

$10k is a lot, but perhaps you are in a higher value area.

Sellers get burnt by wholesalers though, as they sometimes lack the ability to close the deal and there is little recourse for time wasted.

I have a Real estate sales license, so I have steered clear due to ethical concerns pertaining to the duty of fairness.

I always wondered how Real Estate agents say there is "no inventory" but wholesalers seem to find inventory.

Hi Buckeyes! I graduated from fisher college at OSU Yeah, here in CA most of westside properties are easily over 1 mil so 10,000k for wholesaler fees sounds reasonable. He said he got over 50k few times when he did a good job. That sounds very yummmmy

 

[gorillakimchi]

I'm a Realtor as well. Wholesalers are a good source of properties for sure, you just have to be careful with repairs. I definitely don't have a cold call type personality, plus wholesaling doesn't feel like much fun. I'll stick to my 2-3 rehabs a year that actually give me enjoyment along with a few extra bucks if I'm lucky

Rehab is flipping?

 

[glenn walker]

R

Thanks for your explanation! That's what exactly he said . Because we see properties everyday for work, I was wondering if there's any way that we could find a good source of flipping houses like wholesaler does. He said probate list cold calling is just one of his technics.

We do them and we are also brokers but when we find something we purchase it. The so called wholesalers are mostly old broke guys who work with the hard money guys. Sometimes one will find us a good deal but most often not what we are looking for. BUT we are out of this market as of last year unless we literally steal something and so far we have not seen any real deals in the last 24 months. Also right now you have to be careful because if some homeless guy moves in your vacant rehab-the police or sheriff will not remove him and only way legally is to evict him and courts are closed and Covid-19 eviction laws are good for another 2 or 3 months. Too bad my two cousins the POBOB"S AKA The Pissed off Bikers from Berdoo are dead, they did $500.00 midnight evictions and of course that included a Keg of beer for their Friday night outlaw party's : ) LOL