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EXECUTION The Quickest Way I Know of To Make $10k If You Are Dead BROKE!! SERIOUSLY

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Yussef

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I have been gone from the forum for a while but I wanted to share something of value.

I am not a writer so I don't expect to win a Pulitzer for this but it's strategy I know you can use and implement in as little as a few days to make money to finance those bigger dreams.

It's great to have big dreams of making millions or hundreds of thousands of dollars but first you need to know how to make thousands of dollars, consistently.

There are a lot of great ideas and concepts here on the forum, many of which may require time, money and/or a fair amount of focus and study to implement.

The bad (real) news is anything worth knowing requires focus and at least a little time to study so I can't help you there. That depends on your level of commitment.

The good news is

Not all things require money or "a lot" of time before you know enough to start making enough money to fund those bigger dreams.

THE QUICKEST AND MOST COST EFFECTIVE WAY I KNOW OF TO MAKE 10K (repetitively) IS CALLED "REAL ESTATE WHOLESALING"

If you have a car (not mandatory), a phone, and some hustle you can make money quickly in most cities and towns in the USA. I have done this in NC, GA, MS and Missouri. A few of these houses I never laid eyes on but that's a more advanced strategy called virtual wholesaling.

So, what is Realestate Wholesaling?

Realestate Wholesaling is the ability to find "off market" (not for sale) deep discounted properties (many times distressed), putting them under contract, then assigning your equitable rights to an end buyer which is most likely a local investor looking to buy similar properties for cash to fix up and resell for a healthy profit. Usually 20% -40%.

You make money by selling (assigning) your rights as the buyer to the investor (end buyer) which is paid to you by the attorney at closing.

Here is how it works.

Jeff lives in an area where investors buy and fix up properties regularly. What Jeff has recently learned is that these investors are great at fixing up houses and reselling them but they don't have the time or specialized knowledge to find homes and negotiate with motivated sellers, down to a price that would be profitable for them to fix and flip.

Jeff fills the void by doing what is called driving for dollars.

He commits so many hours per day or week to driving neighborhoods with recent homes that he notices are getting rehabbed and sold.

He knows if he can find distressed homes (that are NOT for sale already) and talks with the owners some of them may be in situations where they would be open to an all cash offer and 30 day closing. Some may even be in pre foreclosure and need to sell quickly and Jeff's service would be a life line to them and allow some to save their credit and possibly walk away with cash in their pocket instead of just losing the home.

BUT WAIT YOU SAID THIS DIDN'T REQUIRE ANY MONEY! WTF

Stay with me. It doesn't. At least not Jeff's.

Jeff eventually finds Jack. Jack lives in a 3br 2 bath brick ranch with a tarp on the roof, plastic over one of his windows, overgrown grass and a busted screen door.

Jeff recognizes this as a potential opportunity to solve a problem and gets Jacks contact information and gives Jack the homeowner a call.

After talking with Jack, Jeff learns that Jack is a widower with grown kids and has been thinking about selling this "money pit" and moving to the beach.

Jeff knows that the house has an ARV of $130k but will easily need $30k worth of repairs and updates. He tells Jack, "Hey I really like this house Jack, If I can give you $51000 cash for this house and close in 30 days would you sell it to me?"

Jack says hell yes I will sell you this house for $51,000 with no problem, and signs the contract with Jeff.

Jeff calls up a group of guys he met while stopping by the other houses he saw getting fixed up in the same area and asks if they would be interested in a great deal he has under contract with about a 30% ROI.

The potential buyers are already familiar with the comparables in the area and know that a 3br 2 bath house in HGTV shape, in the same area will sell for $130k or more. Jeff tells them his contract is for $51k with a $10k assignment fee making their total purchase price for Jack's home $61k. When they inquire about the repairs Jeff simply tells them that they can expect to spend $30k or less in repairs. Jeff knows most of them have their own crews that will most likely do the repairs for much less but he doesn't care. He is about to make $10k for less than a weeks worth of work and he is pumped.

When all is said and done the investors are falling over themselves to buy Jeff's deal for $61k because it's a no brainer, profitable deal in an area they are familiar with.

Jeff decides to assign his contract to an investor named Hank for a fee of $10,000.

After Jeff signs the assignment contract, a $2,500 non refundable deposit goes directly to the closing attorney as valuable consideration. Jeff points out in the contract to Hank If he doesn't close in the time agreed upon, Jeff keeps the $2,500 and calls up another buyer with the deal if he has to. After all Jeff has a reputation to protect.

Hank is ecstatic that he just contracted a house worth at least $130k ARV (after repair value) for $61,000. After he puts $30k (or less) into renovation he will be all in for $91,000 not including closing fees.

At closing Jeff gets a check from the attorney for $10,000 for his assignment fee and didn't spend a dime.

Hank goes on to fix the house up and sells it as expected making a very nice profit. Jeff phone starts to ring constantly with investors looking for more deals.

In closing. There are simple assignment and option to purchase contracts you should use to structure this type of deal properly (which you can find online for free). There are also paid ways you can go about finding owners of distressed property to save you time but you don't NEED these things to make your first 10k.

Start looking at youtube videos on wholesaling. There are some good free resources out there. Max Maxwell does a really good free series. Also Jaelin White

I am not saying this is the only business you should focus on but it's a way to make some quick steady cash if you stay committed..

I have corrected and revised this a few times because my phone was constantly ringing and people were in and out asking me questions. I can not multi task well.
 

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amp0193

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Sounds cool if you know about real estate....I'm good at talking to people but I know jack s*** about houses and property :D
Google and YouTube is all you need. This is 2020.

No one knows anything about anything... until they decide to learn it.
 

Xeon

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Real estate is a huge turn off because it's all about extreme math, complex financial documents and the whole she-bang, and all those highly technical terms which make no sense. I think you need at least a diploma or even degree to understand those charts, projections, "yields" whatsoever, as well as understand architectural drawings and some basic knowledge of interior design.
 

Xolela83

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I have been gone from the forum for a while but I wanted to share something of value.

There are a lot of great ideas and concepts hereon the forum, many of which could require time, money and/or a fair amount of focus and learning to implement.

The bad news is anything worth knowing requires focus and at least a little time to learn so I can't help you there.


But...

Not all things require money or "a lot" of time before you know enough to start making enough money to fund those bigger dreams.

THE QUICKEST AND MOST COST EFFECTIVE WAY I KNOW OF TO MAKE 10K IS CALLED "REAL ESTATE WHOLESALING"

If you have a car (not mandatory), a phone, and some hustle you can make money quickly depending upon your market and level of commitment.

What is Wholesaling.

Realestate Wholesaling is simply finding "off market" deep discounted properties (many times distressed), getting them under contract then assigning your equitable rights to an end buyer which is most likely an investor in most cases.

This is how you make your money.

Jeff is lives in an area where investors buy and fix up properties regularly. What Jeff has recently learned is that these investors are great at fixing up houses and reselling them but they don't have the time or specialized knowledge to find homes and negotiate with motivated sellers, down to a price that would be profitable.

Jeff fills the void by doing what is called driving for dollars.

He commits so many hours per day or week to driving neighborhoods with recent homes that he notices are getting rehabbed and sold.

He knows if he can find distressed homes (that are NOT for sale) and talks with the owners some of them may be in situations where they would be open to an all cash offer and 30 day closing.

BUT WAIT YOU SAID THIS DIDN'T REQUIRE ANY MONEY! WTF

Stay with me. It doesn't. At least not Jeff's.

Jeff eventually finds Jack. Jack lives in a 3br 2 bath brick ranch with a tarp on the roof, plastic over his one of his windows, overgrown grass and busted screen door.

After talking with Jack, Jeff find out that Jack is a widower with grown kids and has been thinking about selling this "money pit" moving to the beach.

Jeff knows that the house has an ARV of $130k but will easily need $30k worth of repairs and updates. He tells Jack, "Hey I really like this house Jack, If I can give you $51000 cash for this house and close in 30 days would you sell it to me?"

Jack says hell yes I will sell you this house for $51,000 with no problem, and signs the contract with Jeff.

Jeff calls up a group of guys he met while stopping by the other houses he saw getting fixed up in the same area and asks if they would be interested in great deal he has under contract with about a 30% ROI.

The potential buyers are already familiar with the comparables in the area and know that a 3br 2 bath house in HGTV shape, in the same area will sell for $130k or more. Jeff tells them his contract is for $51k with a $10k assignment fee making their total purchase price for Jack's home $61k. When they inquire about the repairs Jeff simply tells them that they can expect to spend $30k or less in repairs. Jeff knows most of them have their own crews that will most likely will do the repairs for much less but he doesn't care. He is about to make $10k for less than a weeks worth of work and he is pumped.

When all is said and done the investors are falling over themselves to buy Jeffs deal for $61k because it's a no brainer, profitable deal in an area they are familiar with.

Jeff decides to assign his contract to an investor named Hank for a fee of $10,000.

After Jeff signs the assignment contract, a $2,500 non refundable deposit goes directly to the closing attorney as valuable consideration. Jeff points out in the contract to Hank If he doesn't close in the time agreed upon, Jeff keeps the $2,500 and calls up another buyer with the deal if he has to. After all Jeff has a reputation to protect.

Hank is ecstatic that he just contracted a house worth at least $130k ARV (after repair value) for $61,000. After he puts $30k (or less) into renovation he will be all in for $91,000 not including closing fees.

At closing Jeff gets a check from the attorney for $10,000 for his assignment fee and didn't spend a dime.

Hank goes on to fix the house up and sells it as expected making a very nice profit. Jeff phone starts to ring constantly with investors looking for more deals.

In closing. There are simple assignment and option to purchase contracts you should use to structure this type of deal properly (which you can find online for free). There are also paid ways you can go about finding owners of distressed property to save you time but you don't NEED these things to make your first 10k.

Start looking at youtube videos on wholesaling. There are some good free resources out there. Max Maxwell does a really good free series. Also Jaelin White

I am not saying this is the only business you should focus on but it's a way to make some quick steady cash if you stay committed..
Sounds good Yussef, thank you for sharing this
 

Odysseus M Jones

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I have been gone from the forum for a while but I wanted to share something of value.

There are a lot of great ideas and concepts hereon the forum, many of which could require time, money and/or a fair amount of focus and learning to implement.

The bad news is anything worth knowing requires focus and at least a little time to learn so I can't help you there.


But...

Not all things require money or "a lot" of time before you know enough to start making enough money to fund those bigger dreams.

THE QUICKEST AND MOST COST EFFECTIVE WAY I KNOW OF TO MAKE 10K IS CALLED "REAL ESTATE WHOLESALING"

If you have a car (not mandatory), a phone, and some hustle you can make money quickly depending upon your market and level of commitment.

What is Wholesaling.

Realestate Wholesaling is simply finding "off market" deep discounted properties (many times distressed), getting them under contract then assigning your equitable rights to an end buyer which is most likely an investor in most cases.

This is how you make your money.

Jeff is lives in an area where investors buy and fix up properties regularly. What Jeff has recently learned is that these investors are great at fixing up houses and reselling them but they don't have the time or specialized knowledge to find homes and negotiate with motivated sellers, down to a price that would be profitable.

Jeff fills the void by doing what is called driving for dollars.

He commits so many hours per day or week to driving neighborhoods with recent homes that he notices are getting rehabbed and sold.

He knows if he can find distressed homes (that are NOT for sale) and talks with the owners some of them may be in situations where they would be open to an all cash offer and 30 day closing.

BUT WAIT YOU SAID THIS DIDN'T REQUIRE ANY MONEY! WTF

Stay with me. It doesn't. At least not Jeff's.

Jeff eventually finds Jack. Jack lives in a 3br 2 bath brick ranch with a tarp on the roof, plastic over his one of his windows, overgrown grass and busted screen door.

After talking with Jack, Jeff find out that Jack is a widower with grown kids and has been thinking about selling this "money pit" moving to the beach.

Jeff knows that the house has an ARV of $130k but will easily need $30k worth of repairs and updates. He tells Jack, "Hey I really like this house Jack, If I can give you $51000 cash for this house and close in 30 days would you sell it to me?"

Jack says hell yes I will sell you this house for $51,000 with no problem, and signs the contract with Jeff.

Jeff calls up a group of guys he met while stopping by the other houses he saw getting fixed up in the same area and asks if they would be interested in great deal he has under contract with about a 30% ROI.

The potential buyers are already familiar with the comparables in the area and know that a 3br 2 bath house in HGTV shape, in the same area will sell for $130k or more. Jeff tells them his contract is for $51k with a $10k assignment fee making their total purchase price for Jack's home $61k. When they inquire about the repairs Jeff simply tells them that they can expect to spend $30k or less in repairs. Jeff knows most of them have their own crews that will most likely will do the repairs for much less but he doesn't care. He is about to make $10k for less than a weeks worth of work and he is pumped.

When all is said and done the investors are falling over themselves to buy Jeffs deal for $61k because it's a no brainer, profitable deal in an area they are familiar with.

Jeff decides to assign his contract to an investor named Hank for a fee of $10,000.

After Jeff signs the assignment contract, a $2,500 non refundable deposit goes directly to the closing attorney as valuable consideration. Jeff points out in the contract to Hank If he doesn't close in the time agreed upon, Jeff keeps the $2,500 and calls up another buyer with the deal if he has to. After all Jeff has a reputation to protect.

Hank is ecstatic that he just contracted a house worth at least $130k ARV (after repair value) for $61,000. After he puts $30k (or less) into renovation he will be all in for $91,000 not including closing fees.

At closing Jeff gets a check from the attorney for $10,000 for his assignment fee and didn't spend a dime.

Hank goes on to fix the house up and sells it as expected making a very nice profit. Jeff phone starts to ring constantly with investors looking for more deals.

In closing. There are simple assignment and option to purchase contracts you should use to structure this type of deal properly (which you can find online for free). There are also paid ways you can go about finding owners of distressed property to save you time but you don't NEED these things to make your first 10k.

Start looking at youtube videos on wholesaling. There are some good free resources out there. Max Maxwell does a really good free series. Also Jaelin White

I am not saying this is the only business you should focus on but it's a way to make some quick steady cash if you stay committed..
Have you tried it?
 
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Yussef

Yussef

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Sounds cool if you know about real estate....I'm good at talking to people but I know jack s*** about houses and property :D
All you need to know are your numbers. You don't have to be an expert at knowing about realestate. Trust me. If you can go to Lowes or Home Depot and figure out what a vanity, flooring, lighting and paint cost per sf, you can learn to estimate what it cost to fix up a bathroom. Or use $10 per sf for a light rehab. $20 for a moderate one and $30 -$40 for a total gut job and you should have a conservative enough number to make an offer that will work for an end buyer.
 
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Yussef

Yussef

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Have you tried it?
Several successful closings since since 2003 but my first wholesale deal was around 2007. And yes I still use this strategy along with a few others like subject-to deals etc.
 
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Yussef

Yussef

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Good luck driving around your neighborhood for hours on end in the hopes of finding an absentee owner property.

Reality: you need money to buy leads (Rebo/Listsource) and then a little more for outreach (Click2mail).
Oh is that so? Yes those things work when you want to scale but mindset is everything. Every neighborhood has a situation waiting for a solution. Let me ask you this, even if it takes you driving for hours to find the right deal how much time does it take you at your job to make 10K? Just curious.

How about grinding hard the old fashion way to get your first deal closed and then investing the profit into lists, bird dogs and online tools to help scale?
 
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Yussef

Yussef

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Your first deal is always your hardest.

Find some empty and/or distressed "off market" houses, go to the county tax assesor's site,

and get the owner's name and address. FYI I don't target homes that are owned by corporations or LLCs.

Send them a simple letter like the one below and be consistent this is about numbers and consistency:

Hi Sally,

My name is Sef.

I would like to buy your house located at 123 main street for cash
Please call me Today at (666) 789-9870

I can close in 30 days
All Cash
No Real Estate agents to pay. No Fees.
I pay all closing costs.

Thanks, Sef.


Eventually you will get a deal.
 

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Yussef

Yussef

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What would happen if you didn't get a buyer in time?
There are more than enough buyers if you take the time to know your numbers and neighborhoods. Again, you have already begun to build relationships with buyers by stopping by to talk to them at the homes you see being fixed and flipped. Or going to your local REIAs and meetups to introduce yourself.

If a buyer doesn't want your deal you have not done your homework correctly.

Don't get stuck on the what if's. What if you actually get a deal and make a good fee?

What happens then?
 

Odysseus M Jones

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There are more than enough buyers if you take the time to know your numbers and neighborhoods. Again, you have already begun to build relationships with buyers by stopping by to talk to them at the homes you see being fixed and flipped. Or going to your local REIAs and meetups to introduce yourself.

If a buyer doesn't want your deal you have not done your homework correctly.

Don't get stuck on the what if's. What if you actually get a deal and make a good fee?

What happens then?
You're right.
I'll have to check if this is doable in the UK, no shortage of dilapidated houses here.
 
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Yussef

Yussef

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You're right.
I'll have to check if this is doable in the UK, no shortage of dilapidated houses here.
I don't know about the laws in the UK so I can't say one way or another but I do know of quite a few people that wholesale deals here that live in other countries.
There is/ should be a clause in the contract that gives you a LEGAL out.

Usually the due diligence period- just like any other real estate transaction.
That is always there for sure, not only on the assignment contract but the option to purchase contract as well.. But if someone is really hungry enough to start watching the videos they will learn this is a very common question that is answered.
 
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consignia

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I've read about many people pulling these deals for a few grands each time but it only works in the US and a few other first world countries
 

Shay Horseman

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This is great stuff and very motivating. I would be very interested in learning this and giving it a try. I have never been interested in the land flipping/wholesale land stuff. I work directly for 1 of the 8 credit card processors in the U.S. and one of my partnerships I have is with Land Academy and ReTipster. They teach folks how to buy and flip land. Believe it or not, people do buy ocean front property in Arizona with a credit card online. I have 100's of land sellers as clients and some knock it out of the park each and every month.
 
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Yussef

Yussef

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So essentially you need to find a cheap home and sell it for more than you bought it? Revolutionary
Yes but the art is in the science. You are NOT finding a cheap home, you are finding a situation that lends itself to you creating an opportunity for you and an end buyer. Cheap is relative to ARV, location, negotiation skills and ability to disposition your inventory.
 

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Really cool @Yussef thanks for sharing this with us. There is an insane amount of money in real estate, especially where I live in the Boston area.

Quick Q’s about this process:
  • Does Jeff contact Jack through email, postal mail, or knocking on the door (or some combination?)
  • Does Jeff ask for a walk through the house in question, or does it not matter? E.g., turns out the basement is flooded, termites are eating everything in sight and there is a ghost in the attic. That would be a problem for Hank but also Jeff right? Hank would want his fee back, and Jeff’s reputation is ruined with Hank.
  • How does Jeff set his fee, is $10k arbitrary or a percentage fee (in this case 20%!)
  • Jeff probably takes a month or two to close his first deal. Once he gets good at it he can do more (But even 1 deal / month is better cash than most people are earning after 20-30 years in a slow lane career. (Just ask me how I know...)). How many of these deals can Jeff run per month? Up to 4 or more??
Thanks again!
 

Michael Burgess

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Thanks for the post, @Yussef.

I have no idea why so many people are shitting on this idea.

I know plenty of people personally that have & still do wholesale real estate, and have built serious businesses around it. It's a pretty simple thing to do, just requires basic information and a lot of hustle.

Props to whoever takes this as a seed of inspiration and does something with it, and good luck to those that only see obstacles or don't think it'll work in their situation ;)
 

Reign777

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@Yussef Wow i am very interested, what do you think about doing this in NYC or more residential areas like long island. I actually used to be a realtor and i've heard things like this but was sure it was illegal because of proper disclosure agreements. Ended up not working out because real estate isn't what i thought it would be. My question is if this was really profitable why don't realtors do this? because most only make about $30k a year and thats mostly on rental properties and probably 1 sale. What is stopping them from doing this? also i would love to discuss this further with you.
 

USN-Ken

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I used to wholesale in Pittsburgh.

Its a simple idea. You are flipping the contract (in most cases) and often NOT taking ownership of the house. (Although smart people DO take ownership of the house for a few hours and then turn around and resell it to the end buyer, who is sitting in the next room over, aka "double closing".)

Caution: If your marketing materials say you are interested in buying their house, you need to BUY their house and not just assign the contract to the end-buyer. You could get bit for misleading people by saying "I buy house" when you never actually buy them and, instead, just flip the contract to the person who does eventually buy it.

Honestly, you can get an option contract on anything for a set price (tying up the rights to it), then sell your rights on that contract to someone else at a higher price (and you step out of the way). You are basically just 'middle-manning' it. Can be done with houses, cars, businesses, equipment, etc. Option contracts are nothing new.

The PA state realtor association was cracking down on wholesalers because they are essentially acting as an unlicensed real estate agent (finding a buyer and connecting them with a seller and getting a fee for doing so).

There is definitely good/quick money to be made doing it. It attracts a lot of snakes and shysters so the industry often gets a bad name.

My advice:

Be honest in your marketing (don't say you buy houses if you really don't).
Be up-front with the sellers and let them know your plans (if you intend to assign the contract to someone else)
Build a legit business, not a back-alley BS machine.
Don't hide behind a google voice phone number.
Follow your towns' ordinances on using bandit signs.
Be honest in all of your dealings.
Consider getting your real estate license (which are often super-cheap on groupon nowadays) so the state cannot come after you for acting as an unlicensed agent.

Good luck.
 

Vigilante

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Step 1. Do stuff
Step 2. Tell other people how to do it in hopes of helping them out
Step 3. Let people who have never tried it tell you why they can't do it

I LOVE that you posted this here, in detail. So, THANK YOU. This is awesome. People need to open up their eyes to opportunities all around them. Great thread and great suggestion.

Whom ever posted a followup with the reasons they can't... they're right. They can't.
 
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Yussef

Yussef

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Really cool @Yussef thanks for sharing this with us. There is an insane amount of money in real estate, especially where I live in the Boston area.

Quick Q’s about this process:
  • Does Jeff contact Jack through email, postal mail, or knocking on the door (or some combination?)
  • Does Jeff ask for a walk through the house in question, or does it not matter? E.g., turns out the basement is flooded, termites are eating everything in sight and there is a ghost in the attic. That would be a problem for Hank but also Jeff right? Hank would want his fee back, and Jeff’s reputation is ruined with Hank.
  • How does Jeff set his fee, is $10k arbitrary or a percentage fee (in this case 20%!)
  • Jeff probably takes a month or two to close his first deal. Once he gets good at it he can do more (But even 1 deal / month is better cash than most people are earning after 20-30 years in a slow lane career. (Just ask me how I know...)). How many of these deals can Jeff run per month? Up to 4 or more??
Thanks again!
Sorry for the delay. I try to do more "doing" than talking these days.
  • Does Jeff contact Jack through email, postal mail, or knocking on the door (or some combination?)
  • The best answer to this question is whichever way you find works most efficiently for you and your process. If you are a face to face person..get to knocking. If you like to write do that. Or do them all and see which gives you the better return on your time and investment.
  • Does Jeff ask for a walk through the house in question, or does it not matter? E.g., turns out the basement is flooded, termites are eating everything in sight and there is a ghost in the attic. That would be a problem for Hank but also Jeff right? Hank would want his fee back, and Jeff’s reputation is ruined with Hank.
  • I know wholesalers that walk through every home they contract and some that do this virtually in several states that never see any home they contract which is a more advanced strategy you may want to pursue later or if you are in a super competitive market like Cali or Arizona, etc.. I have done both. But the simple answer is if it's local why wouldn't you take someone with an experienced eye with you during your due diligence period? You pay for "due diligence" time why wouldn't you use it? The virtual guys partner up with "boots on the ground" in other cities to go and inspect their houses. As for termites and flooded basements I have contracted homes with both issues without blinking an eye because I know what it costs to make those repairs and I use it as leverage when I make my offer but I make sure to take very good pictures and disclose it to any potential buyers. Integrity is everything when building a name in this industry. Things like that make for very good deals price wise because the seller knows it's an issue and doesn't want to pay for the repairs many times or deal with the time or headache. An investor with an experienced crew will fix it with no problem if the numbers work in his favor.
  • How does Jeff set his fee, is $10k arbitrary or a percentage fee (in this case 20%!)
  • Thats up to Jeff and his level of confidence and experience. If Jeff is happy making a $1500.00 assignment fee while he is learning then so be it. I can't tell a man/woman what their time is worth. I like to shoot for 10k and up. But if you are just getting out there and want to offer investors good ROI and spreads then the less you make the better the deal is for an investor but don't keep your fee low for too long just a few deals maybe. The more deals you find the more your phone will start ringing for deals. I am at the point now where I am about to start raising private funds to take down more of my own deals and pay my investors a return who have money sitting they need/want to put to work. That's the beauty of this industry. So many levels.
  • Jeff probably takes a month or two to close his first deal. Once he gets good at it he can do more (But even 1 deal / month is better cash than most people are earning after 20-30 years in a slow lane career. (Just ask me how I know...)). How many of these deals can Jeff run per month? Up to 4 or more??
  • Limitless. You must be Jeff...Hi Jeff
 
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Yussef

Yussef

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I used to wholesale in Pittsburgh.

Its a simple idea. You are flipping the contract (in most cases) and often NOT taking ownership of the house. (Although smart people DO take ownership of the house for a few hours and then turn around and resell it to the end buyer, who is sitting in the next room over, aka "double closing".)

Caution: If your marketing materials say you are interested in buying their house, you need to BUY their house and not just assign the contract to the end-buyer. You could get bit for misleading people by saying "I buy house" when you never actually buy them and, instead, just flip the contract to the person who does eventually buy it.

Honestly, you can get an option contract on anything for a set price (tying up the rights to it), then sell your rights on that contract to someone else at a higher price (and you step out of the way). You are basically just 'middle-manning' it. Can be done with houses, cars, businesses, equipment, etc. Option contracts are nothing new.

The PA state realtor association was cracking down on wholesalers because they are essentially acting as an unlicensed real estate agent (finding a buyer and connecting them with a seller and getting a fee for doing so).

There is definitely good/quick money to be made doing it. It attracts a lot of snakes and shysters so the industry often gets a bad name.

My advice:

Be honest in your marketing (don't say you buy houses if you really don't).
Be up-front with the sellers and let them know your plans (if you intend to assign the contract to someone else)
Build a legit business, not a back-alley BS machine.
Don't hide behind a google voice phone number.
Follow your towns' ordinances on using bandit signs.
Be honest in all of your dealings.
Consider getting your real estate license (which are often super-cheap on groupon nowadays) so the state cannot come after you for acting as an unlicensed agent.

Good luck.
Great point. Yes I agree wholeheartedly with building a REAL business.

Thank you for saying this.

The example I used here is for someone looking to just get his/her foot in the door and doesn't have a lot of cash to start with. Or want's or maybe even needs to make more than what they earn on a paycheck.

I couldn't give a whole spill on being ethical (as one should be) because that would be a whole conversation by itself. Besides, I am sure you know if someone is determined to be shady in any industry they will find a way regardless of what I say here. That goes for every industry not just Realestate wholesaling.

I strongly disagree with the licensing part being necessary (unless your in Illinois), but I do think having a good relationship built with buyer agents are very helpful.

I didn't cover bandit signs as that would have been an expense and this post/thread title was for someone who is "DEAD BROKE." Bandit signs can get costly and many cities have ordinances agains them, plus I don't use them so I didn't want to go too far off track discussing that. There are several marketing methods but to make your first 10k this is all you have to do.

As for the comment about "We BuY Houses" marketing and such, my personal belief is if my LLC or entity chooses to partner with other businesses and/or business owners to double close, fund or assign I don't see a problem with that at all in fact most times I tell the seller I am bringing my business partner(s) by to see the property, also my contracts state I am permitted to assign my interests . Company X can assign or sell it's rights or intellectual property to company Y and be perfectly fine ethically in my opinion. Suntrust just did it with BB&T without any of it's customer's permission and/or consent so I guess thats a personal choice on how you choose to conduct business. Also my understanding is that all contracts are assignable unless they specifically state they are not.
 
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Yussef

Yussef

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@Yussef Wow i am very interested, what do you think about doing this in NYC or more residential areas like long island. I actually used to be a realtor and i've heard things like this but was sure it was illegal because of proper disclosure agreements. Ended up not working out because real estate isn't what i thought it would be. My question is if this was really profitable why don't realtors do this? because most only make about $30k a year and thats mostly on rental properties and probably 1 sale. What is stopping them from doing this? also i would love to discuss this further with you.
As I am sure you know NY is competitive but doable. But wholesaling like any other business is a specialized skill set.

As for why most realtors don't do this, I would say for the same reason many people still punch a clock everyday with all of this free information available to help them to live better lives. MINDSET! SECURITY! FEAR!

I am flattered you want to talk more to me about it but I didn't invent this and you can find this info on YouTube from guys that teach it very well. You don't need me. I am not a teacher or a GURU. I mean step by step ways of doing this. Free Facebook groups with the contracts and stuff already there. Guys with years of experience which is where I learned it.

Go get it man I just wanted to introduce the idea here. Go get it.
 
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Yussef

Yussef

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Thanks for the post, @Yussef.

I have no idea why so many people are shitting on this idea.

I know plenty of people personally that have & still do wholesale real estate, and have built serious businesses around it. It's a pretty simple thing to do, just requires basic information and a lot of hustle.

Props to whoever takes this as a seed of inspiration and does something with it, and good luck to those that only see obstacles or don't think it'll work in their situation ;)
#FACTS
 

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