Wholesaling in NY

Who told you wholesaling is illegal in NY? NY is one of the states that have the most wholesalers I think, theres so much competition there. In fact I know someone who is wholesaling out of long island NY and has been wholesaling for 2 years. Do not believe everything you read on the internet, also some agents my say wholesaling is illegal because their are not investor friendly agents. Wholesaling is being done all over the country and always has been for many years. You might have to use different contracts in different states but its all considered the same thing.

We are diving head first into this and are being stretched and taught new things EVERY DAY. The day after writing this post we met with a family member who is a lawyer (whose has a partner that is a real estate attorney) on Long Island. She went on to tell us that, while wholesaling is perfectly legal, she can not see how anyone would want work with us. She is coming from the viewpoint of working with probates where it is her job to accept offers that bring the bereaved family the MOST possible (we had just learned about probate deals the night prior).

We have spent literally EVERY day since to learn (via 30 days to Fast Cash | Insider Elite tools/resources | Be a RE Mill$$) all to prove to ourselves that we CAN do this and that we can rise above the nay-sayers and that we already ARE successful.

With the effort we have put in so far we expect to be seeing our first deal come through within a matter of days.
On top of all of this we are being forced into high gear. It is great that we are pushing so hard.

Thank you for the response, Reynold.

We are doing this and will use all the help we can get

Welcome. it looks like you are taking the subtitle to Dean's 30 Days to Real Estate Cash-the part about Go Fast with No Fear seriously. Fantastic! As Dean and others on this Website say: There is no better time than NOW. So keep rolling and look around this Website for many answers and many different perspectives. And if you don't see the answer, Ask. There are many people who will be willing to help. Again, welcome.

If it is to be, it is truly up to me.

With Gratitude,
Patrick

I am working on a deal right now in NY.
as long as you have the property under contract you have the right to sell your interest in the property. If you didnt have it under contract you can get in trouble.
Good luck
Richie
never EVER give up!!

on wholesaling & moving forward, I love it now when people tell me it cant be done-all the more I am going to prove to them it can-have proven. Have done a couple deals & now am going to make even larger profits than before. I wholesale in San Diego, so Cal & some people told me as well it couldn't be done, agents actually.

Like Ray & Reynold said some people are just uninformed or trying to sabotage your dream, way to go guys.

I am wholesaling in NY myself and with no problems. As a matter of fact one of my new real estate agents (who is fantastic btw) has been working for the last 13 years in NY and works with many investors.

Congratulations also on your new business venture. I wish you much success!

warmest regards,
Lisa

Regardless of what you hear wholesaling in New York is legal and you will see in the article it points out New York.
Wholesaling real estate is a simple business. The basics are so fundamental that they can be explained and taught to new real estate investors very easily. We teach new real estate investors every day in our real estate coaching programs and Partnership Program how to make money wholesaling bank owned properties and short sales. So why is it that so many people have a hard time understanding wholesaling?

The reason is very simple. They over analyze. They over complicate. After working with hundreds of students I have seen that the one thing that most new real estate investors share is “analysis paralysis”. If you could just learn how to stop over analyzing everything then you would realize that the obstacle to making money from wholesaling is actually quite simple. It is a three letter word. And that word is “you”.

Let’s look at the business of wholesaling on a very simplistic level. There are tons of bank owned properties and short sales on the market. That is a fact. Banks want to liquidate these properties for the highest offer that they can get from cash buyers. That is also a fact. The banks are desperate sellers because they have to sell these vacant and sometimes boarded up houses as soon as possible. Remember that these banks are not in the business of fixing and repairing houses or being a landlord.

Now let’s look at the other side of the coin. There are a lot of cash buyers looking for a great deal. That is a fact. Not surprisingly a lot of the buyers are foreigners. It seems that foreigners have a better grasp than locals do of the amazing fire sale bargain that is happening here in the U.S Real Estate Market. Many of these foreign buyers are willing to step in and buy. Last year the National Association of Realtors ® reported that 82 billion dollars worth of real estate was purchased by foreign buyers. 30% of the purchases were in Florida. 62% of the purchases were in cash(bank owned properties and short sales). Most foreign buyers for Florida real estate are Canadians followed by Europeans and South Americans. So clearly foreigners think that Florida Real Estate is a bargain. Other states that are hot are California (12%), Texas (9%), Arizona (6%) and NEW YORK (3%). The hottest markets are sunny attractive tourist destinations and are also attractive places to retire.

What about U.S buyers? There are domestic cash buyers everywhere too, swarming like vultures looking for a great deal. Many of the domestic buyers for Florida real estate are from the North East. There are new real estate investors that are entering the game for the first time as well as landlords and old time seasoned real estate pros that sense that now is the time to get back in the game. All of these people want the same thing. They want cheap houses at a great price. They want to fix up these houses and flip them to first time home buyers or they want to fix up these houses and hold them long term as rentals. Some of the buyers even want to live in the houses themselves.

So let’s summarize the real estate market place for bank owned properties and short sales. There are desperate sellers (the banks) and then there are the cash buyers many of them foreigners flush with cash. These two parties (banks and cash buyers) would like to do business together. The cash buyers would love to have a personal representative at the bank giving them deals on a platter to look at. But it doesn’t work that way. These banks have a process, a system that they use to liquidate their inventory. And this process involves listing the property on the MLS with an REO listing agent. So the cash buyer needs to call the listing agent in order to make an offer on a property.

So what is the problem with this system? Well for starters there are a lot of tire kickers and time wasters. There are many people that are not cash buyers and don’t understand why they can’t buy that cheap bargain property with a mortgage. The REO broker has to contend with these calls all day and all night which is why many REO brokers have taken to not even answering their phones anymore. If you are an active buyer then you know what I am talking about.

If you do get through to the listing agent many times you will find that the property is already pending or under contract. Sometimes the pending buyer is actually a wholesaler that has no intention of actually closing on the property and is simply looking to resell it for a quick profit to a cash buyer.

What is a wholesaler? He or she is simply the person that did manage to get hold of the listing agent and did manage to get an offer in and got their offer accepted by the bank. The only difference is that the wholesaler is not a rehabber and would sooner flip the property to another investor that close on it and fix and flip or hold it long term as a rental. That does not mean that all wholesalers won’t hold the property. Some will but the majority won’t. This wholesaler will actually be flipping the property to an end buyer by first purchasing the property and then immediately reselling it on the same day to the end buyer. If the wholesaler does not have cash then they will need to borrow the funds from a transactional funding company in order to pay for the property before they resell it for a profit.

So why do I say that this business of wholesaling is inherently simple? You have cash buyers on one side and desperate sellers on the other side. You simply need to have a system in place to connect these cash buyers with the desperate sellers. That system is called wholesaling. If you are a wholesaler and you have a big buyers list of cash buyers then you will have no problem finding a cash buyer for a great deal. A good wholesaler has way more buyers than the average REO listing agent. For this reason, a good wholesaler can move a lot of properties.

A good wholesaler also needs to have an efficient system in place where they can make a lot of offers on a lot of different properties and can preview and inspect all of these properties. A great way to do this is to use bird dogs. Train other people how to find great deals and then cut them in on the deal with you.

So in summary, if you want to be a good wholesaler you are really just a middle man between desperate sellers and cash buyers. Your job is to find great deals for cash investors. If you are good at finding great deals for investors then you can make a lot of money wholesaling. Active wholesalers can move 10, 15 or even 20 properties a month which adds up to a lot of profits. In order to be good you need to be able to pre screen bank owned properties and inspect them to make sure they have no illegal additions, open permits, code violations or excessive damage. You will then need to decide which properties are worth pursuing and will need to make offers on these properties and get your offers accepted. You must know what your cash buyers are looking for which means you will need to understand what they consider to be a good deal and will have to have a solid understanding of comparable sales, repair estimates, valuation and inspection of a property and how much a property is worth.

Once you know how to recognize a great deal then you should be able to train and utilize bird dogs to do this part for you. Obviously you will need to know how to recognize a great deal yourself before you can train others. So make sure you invest in your training and education and understand this well.

Then you should build your cash buyers list so that you have a pool of investors that you can sell your wholesale deals to. You will need a steady stream of cash buyers and your cash buyers list should be growing every day. Once you have a buyers list of 1,000 or more buyers you will have the ability to email blast your wholesale deals and have a decent chance of selling them..

And that’s it. It is really that simple. Wholesaling really is a simple business. The devil is in the details. Don’t know ARV, repair estimates and how to calculate what a house is worth? Then get some training or work as a bird dog yourself until you know how to find and identify a great deal. Then teach others how to find deals for you. Don’t have a buyers list yet? Work as a bird dog for an investor that does and focus on learning the business. Once you understand ARV, comparable sales, repair estimates and what a house is worth then you can worry about building your buyers list. So in summary, here are your action steps to get started. Step 1 is to get training. Step 2 is to find a partner that has buyers. Step 3 is to start building your own buyers list.

It really is that simple. Wholesaling Real Estate Is a Simple Business. llevingrad

yea like it you can do it anywhere, I am in San Diego and you can wholesale here and in LA & NY & Chicago, just have to not listen to the naysayers.

Coming from a probate attorney, yep it is her JOB to get the most $$ for the family. Also means the more $$ for her. Probate attorney's get a portion (%) of the sale price. In California it can range depending on the sales price. Soooo.... probate attorneys will try to get the max value. Does not mean the family MUST sell for the highest offer. Probate courts want proof the property has been placed on the market to give it maximum exposure and to assure maximum bids on the property. If the Administrator/ Executor acts under the IAEA (Independent Administration Estates Act) they are not required to get court confirmation and can sell for any amount they choose to. If the family does not have the money up front to pay the attorney then they will charge the estate. The fee's that CAN be charged are listed below for the state of California. You can also try to negotiate your fee's with the attorney since there are no "required amounts" by the courts. They do have a limit though.

4% of the first 100,000 of the gross value of the probate estate
3% of the next $100,000
2% of the next $800,000
1% of the next $9 million
½% of the next 15 million
“a reasonable amount” of anything over $25 million

Hi- I am in New York more specifically Long and I am actively wholesaling. It is possible and you should find a good attorney and agent. Always come here for support and guidance it is an unbelievable place to network..

Lots of wholesaling there, lots, Jim

We made it through his book once and are starting his book over and looking at each page of the blueprint with more accuracy. There is so much to wrap one's head around when first getting started! I simply did not feel comfortable talking with individuals in the business with the limited knowledge and zero experience. One month in, asking questions, reading books, and watching daily wisdoms... I feel much more confident when I speak with Real Estate Agents and Investors alike.

Thank you for the WELCOME. We are moving forward and are finding our first deal.