Real Estate Investing Training Video Wholesale Deal Part 1

[superman20500]

Great Video. Where is part 2?

[frea1able]

where there's ugly there's opportunity, I love that!

[JaxInvest]

Fab videos... thanks for taking the time to share them!

[20HDavid]

I think when it comes to real estate the best way to save is through saving on realtors commission and i find that this webste helps most

[MichaelJake2]

@20HDavid I think if you want realtors to quit bringing you leads and opportunities ask them to cut their commission. If you want more deals than you can handle, pay them what they are due. You don't save money if you don't have someone bringing you deals. If you want them to acutally SELL a house for you, AGAIN, don't chisel agents out of commissions, pay them what they are worth and the right agents will work for and make your life easier.

[JaxInvest]

Fantastic stuff. I've enjoyed your videos and can't wait for more :)

[SucessNow]

Yes, but...if you would have taken the time to fix this property you would have made much more money! I did one for $185, put in $22 and sold it for $298! More money made less agents to work with!

[LoveTheCity123]

My dad is a real estate investor and we own a condo in the One Museum Park tower in Chicago, a condo in the Trump Tower in Chicago, and a condo at 325 Fifth in New York City. He makes about $12,000 a month for the rent his tenants.

[shakaama]

I need a mentor in Vegas. Or, if you have somewhere for me to stay I could move to Colorado I guess.

[cedarbrookproperties]

"That nice aroma of pet odor and urine and that kinda thing...that kinda smell turns me on, that means opportunity!" Had to laugh when I heard that quote...Great video, Michael! Keep 'em coming.

[calderonenterprises]

Hello had a question, I am in chicago and have just started trying to wholesale RE.

I have a friend who is a Realtor and is helping me submit offers to shortsales on the mls, we have two problems:

number one most of the agents we speak to have no clue and its so frustrating

And two what formula can I use to correctly calculate what a fair offer is to the bank WHILE still knowing I can make a profit to my cash buyers???

I seem to be offering way to little to the banks where deal is insulting

[mscarolynzhao]

Great! I agree that the ugly house smells good. This is the opportunity for an investor. We are making money by solving other people's problems. Automatically, other people's trash will become our treasure.

[mrsdkckr1]

i went to your website, however i don't live in colorado....do the laws allow this to work in other states? per say texas?

[businessesforsales]

great video. keep them coming. 

[leafyutube]

This is a lot tougher in hot markets. Very difficult to get a discount deal, and those damn real estate agents don't make it any easier.

[localmentor]

@leafyutube - I've wholesaled in flat, sideways and down markets - you can make it work - have to look at the spreads between wholesale and retail buy just below the majority of wholesale and flip at wholesale. The % you can get of retail changes but not the ability to "wholesale".

One of the biggest mistakes I made was not building strong realtor relationships earlier on. Realtors are worth their weight in gold if you build a strong relationship with the right ones.

[leafyutube]

@localmentor

Thanks for your thoughts. If I could also ask, what's the best strategy to get a discount deal from an agent? Do you just make a low offer and then explain why it's so low? That's my understanding from your video. You've actually inspired me to give it a try.

[localmentor]

@leafyutube - a lot of the deals I write on are at or around the listing price. You need to know what a "fixed up" version of a house similar is worth to back into what a good deal is for one. Today I got a contract on a listed house - listed at 65k, I got it for 61k - the After Repaired Value is 180k. That's a deal without knocking 30% off listing - that's where a lot of beginners make mistakes (me too when I started). Know ARV and work backwards. Takes some time to get good but worth it.

[leafyutube]

@localmentor

Those are really helpful tips. Thanks a lot!

[GrantHeathcote]

I am new to this and have a couple of questions if that is ok. I noticed a comment that said you could do wholesale deals using no money by assigning the contract or through a double closing. Wouldn't you still need downpayment money at least in a double closing? Also when assigning a contract how do you stop the buyer from bypassing you and going straight to the seller? Thanks in advance for your response and for your video. Very enlightening.

[localmentor]

@GrantHeathcote when assigning you'll never need down payment money. When double closing (depending on the type of deal and who's selling) you may need flash cash (REO's possibly but other ways around that - see my video on flipping REO's). I've never had anyone try to go around me - usually my buyer doesn't know how to contact my seller and if it's a listed property agents are too scared about getting sued to try to go around a signed contract. can also record a doc to protect your interest

[VegasRealEstateBlog]

love your channel and vids!!!!!

[HousingAlerts]

Great info...

[JBROOKS7321]

i like it

[localmentor]

@Samuelmusic9 - yes, quite a bit, but I typically buy with Owner Financing for "keeper" properties. You can't avoid capital gains tax, you can postpone it. ;)

[jeffrykevans]

Really great walk through. I love seeing someone do what America was built on - finding and capitalizing on opportunity. Great real estate tips, keep 'em coming.

[reiclub]

Thanks for taking the time to walk through an actual property that fits the profile of a typical wholesale. Like you said, the worst the smell the better the opportunity. Great tips, great walk through.

[JBROOKS7321]

nice video

[kinghopeaks]

Hi I think its great that you are providing information for other investors. Do you owner finance your properties when you sell? Does this help when wholesaling?

[localmentor]

@kinghopeaks - occasionally I'll get price and terms from my seller so I can pass that along to a buyer on a wholesale deal. You need to know your state's SAFE act rules regarding seller financing to keep yourself out of trouble. Most of my wholesale deals lately are REO properties so there's no seller financing to pass on.

[imyourlinkdotcom]

one of the first vids i watched when I started wholesaling

[housingnepal]

Good Video 

[spectrum0590]

Whole sale property deal usually done in a property with a lot of repair to do. This property usually available in a low price.

[XwaveHealthcare]

1500 bucks for a bathroom gut / sheet / tile? Is that including tile costs? If so gooooooooooooooood for you :)

[renobible]

Like the information, I would like to see a video on how relationships with Contractors can increase Values

[localmentor]

@renobible - I'd like to see you quit spamming me with your videos.

[triforcelink]

"where there is ugly, there is opportunity" LMAO that made my day.

[mrbealer]

somebody left a suprise lol

[2aenterprises]

This is a great explaination of the property. I invest in real estate also and wholesale properties as well in several states in the US.

[carlmj16]

Hi Michael, I just got into the business of wholesale real estate. What I do is look for REO's and I have the realtor show me the property. I then make an offer for the property then once it goes into escrow, I transfer the grant deed to an end buyer (rehabber). My job is to get him homes to rehab and I get a small percentage of that deal. My question for you is, is it illegal to do a double close escrow with my end buyer? I spoke to a realtor recently and he told me it is illegal.

[localmentor]

@carlmj16 - double closings are not illegal if done properly. That's a typical realtor response to a situation taught to investors. They may be referring to a "Straw Buyer" technique that is typically loan fraud among other things (to avoid!)

[MrNationwideevents]

Hi Michael,

Quick question...can the seller sue you if you do not find and end buyer?

[localmentor]

@MrNationwideevents - depends - if you don't have an investor friendly contract or don't write it up correctly, YES, but if you use an assignable contract with liquidated damages vs. specific performance and set it up correctly then NO.

[Ladybug0627]

Thanks for the video. We took some seminars from Robert Kiosaki. We are investors so this kind of information is helpful for us and others.

[RLJ93727]

Awesome stuff #UN#

[GrandPatzer]

Hi, did you sell the purchase contract, or did you purchase the property with cash, then sell the property after you closed with the original seller?

[SwigEquities1]

Good tips.

[walisantana]

Mike,do you offer your program in San Diego California?

[macpduff]

Thanks for the vid

[pissedoffdude87]

Does anyone know of any books or learning resources around that are good for someone looking to start out in property investment? I'm 22 and am looking at buying my first property to rent out and live in with the intention of making a profit on it and hopefully buying some more properties down the track. I guess i'm looking for something that will just explain the more basic facts before i start moving onto the finer points of real estate

[localmentor]

get some of John Schaub's books - all on amazon.

[aaronmwall]

@pissedoffdude87

my first piece of advice would be to change your name to something more professional

[pissedoffdude87]

ha ha...no.

[altha2008]

@pissedoffdude87 just stay up late and watch some of the info commericals

the same stuff these guys are doing they will show you for a lot chepaer

[mattatavannah]

@pissedoffdude87 Where are you looking to buy?

[Baker636]

@pissedoffdude87 Are you dumb enough to be rich, is a great book.

[SelymAllip]

Hi my name is Myles and I'm looking for I suppose you could say a "mentor" I have taken a few classes on real estate investing and I see the opportunities that it brings. I'm looking to get in to get my mom and dad out of debt to reduce the insane stress they have. After of course I would like to juice up my money to provide a life out of debt for myself (I'm only 18 and in college). If your interested in showing me the ropes, I am a very good learner and I listen well.Would be much appreciated

[Flammingos]

We just learned about wholesales and real estate. It is really wonderful but I think you got that house overpriced O.o But I was told when the person who buys the home with a bank loan things get messy, is it true?

[localmentor]

Overpriced? Your market may be different than mine, but that deal was less than 70%-repairs and my buyer would buy as many of those deals as I could find and have margin to fix and flip it.

...and yes things get more complicated when buyers try to use traditional bank financing. I wouldn't even tie up a deal with someone who needed a loan. Rehabers pay cash or hard money or private money and can close in days. This house went from contract to closing table in 2 business days.

[youngtangerine]

That's what I'm talking about. You go localmentor...seems to me you are

"doin' the damn thing"

LOVE REAL ESTATE 24/7!!!!!!! Tangerine

[kiiyo1]

@Flammingos uh did u not hear the numbers he bought it for 50 sold it for at least 59 (9000 profit) with no work done to it the buyer is going to spend 3 more maybe to fix all those thing and sell it for 75 to 85 and it will sell it has equity in it all ready this was a great move by this guy i just wanna be like u local mentor

[liorohu]

Let me try...........

[walisantana]

Mike I have a question for,you thing will be better to find the homes trough the internet or driving around,and what will be best,comunicate with the real state agent or with the owner?

[localmentor]

keep in mind there is no 'one way' to get leads. You get one system for lead generation up and running and working, then you start another. For beginners, driving for dollars gets them out from in front of the computer and into the market to learn what areas look like, sell for, etc...all while getting leads. Ugly and vacant is obvious to any untrained eye and a great way to start - at some point you can outsource that and move on to other, multiple leads gen strategies.

[localmentor]

internet will get you more short sale and terms deals than all cash junkers - 9-1 ballpark stats by my account. far more pretty houses than ugly houses, so learn how to profit on them too and you'll have a well rounded biz.

[thinkofsomethincleva]

Thank you for helping people learn.

[GypsyKing7]

MIchael Jake , Is the Man! Thank You!

[cynthia1984ful]

good advise

[AIMANALI]

i am an investor....people listen to this guy ...one of the few that is offering practical advise.

[ThatDifferentGuy]

Thanks man, your videos really inspired me to invest in real estate rather then the stock market.

I prefer to know where my moneys going. :D

[telemanque]

omg, you got money to invest?where are you? trying to put some deal$ together?down market= candy jar

[Pyromaniac21]

So you can wholesale even if there's an agent/realtor/broker involved? Doesn't that cut in to your profits? And besides that, doesn't that complicate negotiations?

[ThePistolTingenTeam]

Seller's pay the agent's commission. So the REO company already has that figured into their price. So if you can somehow circumvent the Realtor the REO company is just keeping that commission. In other words the seller keeps the profit, not you.

[Pyromaniac21]

Question for submitter / director: 2:39  ... is that a basement?

[ZipBuyerdotcom]

Wholesaling definitely keeps your hands clean in this business!

[MichaelJakeCoaching]

Wholesaling requires no financing - not for the wholesaler - that's the whole point - you sign up the deal and sell the deal to another who pays cash or provides financing. You get paid by selling the contract or double closing. You don't need any money to do wholesaling. If wholesaling REO's you will need earnest money deposits, but you will want to watch my video on wholesaling REO's for the techniques.

[space10]

Hey MIke. I saw all your other videos, but I do have a question. What type of financing did you use when you first started out wholesaling? (assuming that it wasn't all cash since you just started out)

[NadeauProductions]

lol ugly is opportunity, i like that

[bobbydidgeNR]

hey i like a chance to speak with you. if you could find time to call 732-306-4740

[DrewDownsManagement]

Nice Vid. I enjoyed it. We market properties and other things on youtube, we hope to create a large network of people interested in making money. Your video gets a five star rating from us. I hope you feel the same about ours.

[manman2401]

nice vid

[georgelink1]

Audio is hard to hear, but the video is great - really helps me understand what a fixer upper looks like. Thanks!