Got Questions? Carol Stinson's Wholesaling Q&A.

Yes that would be considered a Short Sale and to explain that process I would need an entire forum...LOL You cannot assign a Short Sale (The bank wont allow it) so basically you have to get paid outside of closing from your buyer.

The answer to this depends on the state that you are wholesaling in. Some states are Attorney States ( You need an Attorney to close) and some are not ( You use a Title Company) I live in NJ which is not an Attorney state therefore I do not need to involve an Attorney in my wholesale transactions.

To find the best Title Co ask around in your Real Estate Investment group to see who other wholesalers use. Not all Title companies will do assignments.

Hope this helps

Hi! I just wanted to say that it's great that you are able to take time out of your busy schedule to answer questions. You are very thorough in your explanations. Not many people are able to do that. You said you have made over $100k in just the last two years by wholesaling/assignment of contracts? That gives me hope. Im just having a hard time getting started because I think when they realize that I have no experience in investing that they will not want to work with me. Should I just have one RE agent to work with me or should I have a few? Thank you for taking the time to read this.

My name is Brett Jeffries. I am 25 years old and I am just getting into this real estate investing. This is my first time working in real estate even though I have been working in the Sales Industry since i was 16. Here is my issue i dont have good credit at all. And i dont know what to do... I dont really know what I am doing and/ or how to get started. Can you please share some ideas or give me advice on how to get started?? Thank. Brett

Hi carol,

I wanted to know how often do you call the for rent ads a week? what is your response rate? do you get more buyers or more sellers? Just curious about your return on the phone calls. So far I haven't made any progress with this but I am still going at it I wont give up.

Well the first thing you should do is create your buyers' list. Also find yourself a RE agent that is investor friendly. Since you said you dont have great credit right now; I would say Assingment of Contracts/Instant Equity Exchange would be the place to start.

Hi! Carol
Where do you find Short sale properties. The sites I've been too dont say if they are SS properties. How do I determine SS? Is there an easier way. Please comment. Mellena

Hey Carol,

I just finished watching The Edge 2010 not too long ago and your story and strategy appealed to me the most. I understand the jist of assigning properties but it is the particulars that make me nervous. I have joined your National Wholesale Team so I can help when a lead is sent my way. However, I am looking to do a deal ASAP and have one to pursue now. What would you recommend as far as partnering with an experienced wholesaler for my first deal or so, so I can get my feet wet and get the hang of it. Do you think this is a reasonable idea, and if so, do you know where I can find a partner to help me out?

Thanks,
Jason

Mellena,

I have many strategies for finding Short Sales...

I have my realtor send me expired short sales in my area and I go knock on the door. No kidding... I go door knocking, explain how I can help and nine times out of ten I end up doing the short sale...LOL!

I also door knock properties listed on our County Sheriff sale list. Once I put in an offer on the property the Sheriff sale is postponed giving me time to work it and get it sold.

Trust me though door knocking is not for everyone.So maybe you could send a letter to these sellers expressing your interest.

I also have bandit signs up that say "WE BUY SHORT SALES" I get calls from this as well. My team is currently working 12 short sales with more in the pipe lines.

Hope this helps.

Brett,

First of all welcome to DG. I can not properly explain everything on this thread so I suggest that you visit a website that I created to help others get started in wholesaling http://realwholesaling.com. I think you will find answers to your questions there.

Good luck and again welcome aboard

Lately I am finding that the for rent ads mostly produces buyers. This is because Investor are taking advantage of the real estate market and getting properties at great prices. They are then holding them, renting them out until the market improves then they will flip and cash in. So the majority of the for rent ads are from buyers who are renting out these properties.

This has truly changed gears over the past year. For rent ads were mostly desperate homeowners then. I guess all of the investors bought those properties...LOL!

Jason I would suggest that if you are going to partner with someone to learn the business you find someone here on DG. The members here are all striving towards the same goal. There are many here in your area I am sure.

Hi Carol

Of all the assignments that you have done, what percentage of the properties did you physically see and inspect in person?

I recently met with the owner of a duplex, a realtor who has been in business for a long time and wants to retire. He wants to sell this duplex which is in a pristine condition. The 2nd floor is rented out but the 1st is not. The rent for the 2nd floor is $700+. He is asking $169k but is flexible on price and is also open to lease option, if substantial amount is put down. I know the owner is motivated and want to sell the property because of personal reasons as well. My question is how do I determine the value of the duplex? I have spoken to him several times and is interested in my offer. I do I determine the best offer to give him.

I don't have a dime but would like to wholesale this deal. How do I go about this?

In addition, I wish you can take my hand and help me get started. I am so desperate, I am willing to go along with whatever percentage of the profit(you decide)on this deal and other deals that I have in the works. This is not a bribe but desperation. I have a ways of finding owners of properties by contacting local governments' websites.

I live very close to you, in Philadelphia and I will welcome any opportunities to work with you.

If you want, I would be open to send you my phone #

Thanks

What forms do we need to use for the Cash and Loan deals?

Don

Hi Carol thanks for all the information you share. I have a quick question i have a possible wholesale deal owner is willing to take 38,000 house is worth 85,000 the buyer will buy for 55,000 cash. I live in a different state how would i go about this i have deans program profit from real estate with a cd with forms and documents. do i use those forms and do i have to modify them or use them as is. Do i use purchase agreement for me and seller with the investor diclosure form, and then do i use assignment contract form from this site with me and buyer and then what do i do next? And how do i get paid from buyer living in another state do i get paid before i fax him assignment of contract or do i have to physically go to the state to meet the buyer. Thanks so much very new to this hit the ground running as soon as i and my wife left insiders edge event.

Wholesaling in another state is the same as wholesaling in your state.

Purchase agreement between you and seller
Assignment contract between you and buyer

You get paid at closing through your assignment contract.

Ex. Purchase agreement with seller for $100,000
Assignment contract with buyer for $110,000

Both contracts go to Title Co. or Attorney if it is an Attorney state and Title Company or Attorney will issue you a check for the $10,000 over purchase price at closing. You can have it directly wired to your bank account if you give the Title Co. wiring instructions before closing.

It's that simple!

Good luck!

Hey Carol, I sent you an email with this question but then found this post and thought maybe other people have the same concern. I can't possibly be the only one who is struggling to understand everything (if so, just pretend like I'm not as dumb as I feel)!

Ok... I have an investor friendly agent who is willing to find me deals that I can then assign to an investor who actually has money (I don't!) but am unsure of how this process works when the property is listed on the MLS or at least has a RE agent in the middle. I'm assuming the basic process is the same: make an offer & hopefully it is accepted but then what? Do I fill out the same type of assignment contract (and/ or assigns) like those found in the forms section and send it to the real estate agent or is there some other step involved. I don't want to ask the agent and appear to have no idea what I'm doing just because I really don't! Also don't want to screw something up and not get paid or, even worse, tick off a potential big money investor or the person who presented the opportunity to me!

Thanks for making yourself available to all of us. I know that you are a huge inspiration to me and many others!

I just spent a good chunk of time reading this entire thread. Lot's of great information here. You are doing what I want to do, wholesaling. I too am having issues locating buyers. I think the ads have become over used. I liked the ghost ad you suggested earlier in the thread. Maybe I will have to try it. The few people who have called from my ads just want me on their buyers list...which would be fine if I had any money,lol.

Is there a way to find owners of abandoned houses other than tax records? I have no less that 14 abandoned properties in my small city. Most of the tax record addresses show the address as being at the property. If you go to yellow book you get 25 pages of matching names. Not sure where to go from this point on these properties.

Thanks for taking so much of your time to help us.

wow! this is a great tool to put in my bookmarks!!! seeing as i have a dream to get into wholesaling so i can afford to buy a home within the next year for my family (cash only) i will be reading the whole thing, but my question is this, for those of us who are new at this, what is the best way to get investors and an agent/broker? i am working on both, but feel totally lost in the shuffle.

I just read the entire thread--thank you! My questions have been answered.

~Kelli S.
Washington State

Hello Carol,
Just read your whole thread. Wonderful info.
I have a question about wholesaling probate properties. My experience here in NJ is that most executors use an attorney and of course here in NJ attorneys don't usually like assignment clauses in their RE contracts. So how do I assign the contract once I have it?
And also, I find that a lot of sellers attorneys want a substantial deposit with the contract. How do I get around that or at least not use my own money?
Thank you Carol in advance for answering my 2 questions. Jersey Jer

What's the best entity for the lowest taxes to do wholesaling in?

Carol

Carol,

Thank you so much for the tremendous knowledge you shared on the Rock Bottom Blue Print. I am new and setting things up with my power team. I love the idea of working with expired listings however my agent who I have done no deals with doesn't neccessarily have an interest in sending me expired listings. What can I say that would make an agent want to send me expired listings?

What type of arrangement have you have worked out with your agent? Do they get full commission for expired listings?

Thanks,

Greg

Carol,

I'm from Edmonton, Canada and I want to take wholesale properties in the States. I know it can be done but I can't physically walk through the property. How can I have an estimate of the repairs needed? Is there a way for me to not spend on a licensed inspector or a contractor? What would you suggest?

In the 2011 edge event, Matt said that he offers 40% of the asking price of all the filtered properties. In the rock bottom blueprint's fast cash formula, he said to get comps for each property and then offer 40% of the fair market value for each property. What should I use? Won't my realtor get tired of getting comps for all the properties? And only 1 in 25 offers gets accepted.

All the best,

Bryce

Hi Carol, had a friend call me says she is upside down in her house she owes way more than the house is worth,she contacted the bank and since she is not behind in payments they won't help her. So now she is going to miss one payment and see if they will do anything. She called to tell me she may be walking away from it. Me being knew to this I have a person who wants to do a lease option. My question is how do I get this property if there is more owed on it then it's worth?

You can contact the lender and see if they are interested in selling the note at a discounted price. If they are interested, they may end up wanting you to sign an "Arms Length" Agreement. Basically, they'll want to try and make sure that the current owner (i.e. your friend) doesn't benefit financially from them taking a loss.

Just a suggestion,

Hi Carol

You are such an inspiration to Mom's everywhere, I am fairly new to Real Estate and I really want to make some money doing this and provide for my children just like you. I have a question, where do the money come from for financing rehab deals. Is there a company out there that will give money to fix up houses and sell.

Any help will be appreciated..

Thank in Advance,

Shelby

ok just wanting "EXPERTISE" here from a wholesaling "LEGEND"....lol...i couldnt help myself there Carol....

i got this home that came to me....its arv is about 250k she is only asing 80k i could possibly give away 50% equity and still make almost 30k on the deal....now what paperwork do i need and no there is no lawyers around here that would help an investor....and what things should i watch out for?, things i should do?, etc...?

Sean Brady
Bandit Properties!~