OfflineI am still learning a lot of this stuff and reading a lot of these blogs and deans book. I hope this isn't an annoying question, but how does a wholesaler find better houses vs. a real-estate agent. if i'm understanding correctly doesn't a wholesaler and real estate agent do essentially the same things? my question pertains to understanding the difference and how to find properties as a wholesaler vs a real estate agent. Is 2% of the sale to the buyer usually a good fee to charge for a wholesaler? thank you everyone i'm trying to understand and learn as i go.
__________________
The main difference is that in wholesaling you lock the property up under contract and with the and/or assignee phrase beside your name. You actually have control of that property until the contract expires.How much profit you make depends on how much you are under real FMV. So you are selling the rights to buy the home. A real estate agent works for the homeowner and markets the sale for the amount that the homeowner wants to ask. They in turn collect a percentage of the sale.
I believe this was a very good question. Sometimes the best deals are not listed with a real estate agent. They can be a for sale by owner (FSBO), a work of mouth home that may be listed soon that you find out from a neighbor or someone in the community or you may be able to find a few homes by just sending an inquiry to a home owner with an overgrown lawn and the home does not looked lived in. There are several ways you may be able to find, tie up and wholesale some homes. I hope this helps. Good luck with REI. Believe and Achieve!
- Joe
YOU TUBE CHANNEL - Follow me on my You Tube Channel at Joe Jurek Real Estate Investing Adventures
https://www.youtube.com/channel/UCiko62V79zLKX_owbirAYNA
TWITTER - Follow me on Twitter at Joe Jurek CPA
Joe Jurek CPA
https://twitter.com/JoeJurekCPA
thanks Indiana joe once again. I'm thankful that you reply with such powerful knowledge. I am going to get to an REI club here in denver soon to start meeting investors and maybe build a list.
Yep, those are all great ways to find deals, but even listed and/or REO properties can be great deals.
Call the banks and get a list of their properties. The reasons why foreclosures can fetch great prices are endless, but some include:
-Their listing agent hasn't listed it yet for whatever reason.
-Stigmas sometimes exist with foreclosures that prevent offers.
-The listing might pretty old and not updated with a price close to FMV, so people don't bother making offers on it.
Banks like to convert foreclosures to cash and they will take a loss on it, and deals people have outlined here are proof of that. Most people assume banks will take the loan balance as a minimum, but the market has forced that to change - at least temporarily.