WREIA 2017 Oct. Meeting
Monday, October 16th
Doors Open @ 6:30PM
“How To Flip A House In Any Market”
Re: 100K Wholesale Deal
Some people don’t want to, in fact, they refuse to go the traditional route and use a realtor to sell their property.
There can be a whole range of reasons why people might make this decision.
At the end of the day, many of those people try to sell the property themselves. For Sale By Owner signs are the easiest way to find them. FSBO is the industry term we use when we refer to them.
“Fizzbo’s” are usually not the easiest people to deal with. They have a reputation for wanting top dollar or beyond. Or, you might find them to be a bit eccentric. But don’t let that deter you from trying to work with them.
In fact, I’ve grown to really enjoy some eccentric people. They can remind us of just how great of a country we live in that people can be so different, come from so many backgrounds and really just enjoy life.
When I drove by this property in DC I saw a tiny little “For Sale” sign in the window.
It was impossible to read details from the road. So I pulled back around the block and got out of the car.
By being out in the city and pulling back around to get the details on the sign, I probably separated myself from 99.99% of my competition. You know them. They are the “cash buyers” that do all their work from behind a computer screen with little to no experience on the street.
Side note – I’ve grown a bit skeptical about the out of town seminar companies that want you to join their “team” after attending their free seminar? They make promises that they can teach you how to hop in front of the computer a few times and week and suddenly you’re a “cash buyer”.
The seminar companies are churning out daisy-chain wholesalers that are doing nothing more than promoting other peoples deals. They do little to no work themselves but they are creating quite the image for themselves on “Fakebook.”
Some of these real estate “promoters” are going to end up with heavy fines or even jail time for dealing real estate without a license.
Back to happier times…..
So here I was, downtown DC, on the side of the street talking on my cell phone to the owner.
Long story short – the owner was a reluctant landlord that really wanted to go to grad school. If he could sell the property he could pay for school.
So, we agreed to a price and got the property under contract. I thought it was going to be a great project to fix and flip.
But, once I got the property under contract I dug a little deeper and did some further research on comps in the area. I found another investor/agent friend of mine that was doing condo conversions in the area. For him, there was a higher and better use for this property.
He agreed to pay me 100k for the rights to my contract.
When I assigned my rights to that contract to him – which is done every day across all industries – he paid me 100k.
Three weeks later, closing went off without any problems. But three more things happened:
- 28 year old reluctant landlord went on to grad school – debt free.
- I collected a very nice fee for about three weeks of work. (Results not typical, even for me. These deals come along every so often and you have to have a lot of things in place to pull them off properly.)
- The buyer also converted the property to legal separate condos while he renovated the property and made a very nice profit himself.
That’s an example of “wholesaling” a property. It’s also one of the options you have when you are thinking about your first deal in real estate.
Wholesaling is relatively low risk. You don’t have to deal with any renovation issues, tenants, or permits. You won’t stay awake a night when a hurricane blows into town or we get three feet of snow from one of those famous winter storms worried that your renovation is stalled until we can safely leave the house again.
Wholesaling can be exciting, fun, and low cost. For most people, it’s a great way to stick your toe in the water to see what you think of real estate investing as a career.
Wholesaling, when you are the person with your name on the contract, is not illegal and you won’t get in trouble. When you start promoting other peoples property or contracts – for a fee and without a license – you better watch out. You’re gonna find yourself in trouble. I don’t care what those guys from YouTube or the “As seen on TV” seminar companies are telling you.
If you are looking for a little more insight into doing your first or maybe your next flip – legally – here in the DC area, you should join us at our Oct. WREIA meeting Monday, Oct. 16th in Bethesda.
Reserve your seat here.
Dozens of active and aspiring investors get together each month at our WREIA meetings to network, share resources and educate each other on tactics and practices that are working right now in the DC area.
We’ve been doing this every month since 2001.
And this Monday on Oct. 16th, we will cover so much more than wholesaling or FSBO’s.
If you want to learn how to make money flipping houses in the DC area – in 2017, ’18 and beyond – join us at WREIA on Oct. 16th.
I’ll give you a roadmap with action items you can take and put to use as soon as you leave the room. In fact, on your drive home, you might just find another one of these condo-conversion-diamonds-in-the-rough.
Enjoy yet another meeting with no sales pitch. Just tactics and info for members of our WREIA community.
If you are ready to get to work – Join me on Oct. 16th.
Reserve your seat here.
Founder, Washington Real Estate Investors Association