INVESTMENT

How to spot scam wholesale deal


This comes from this week’s question Rob Upstairs Real Estate Rookie Facebook Group. Rob is asking: How do I make sure that a wholesaler sending me a deal is not a scam?

With the wholesale business, like other sectors of real estate, you will always find your good and bad actors. Many wholesalers are running professional businesses, but some are simply inexperienced, while others are malicious.

If you want Ashley and Tony to answer a real estate question, you can post on the Real Estate Rookie Facebook group! Or, call us at the Rookie Request Line (1-888-5-Rookie).

Ashley:
This is Real Estate Rookie, Episode 130.

Tony:
What news friends. So welcome to the real estate rookie, where we break down the basics. That way, you as a new investor can understand the concepts and really take action and start building financial independence through real estate investing and where no stupid questions can be asked. So, Ashley Kehr, I’m so excited to be sitting here with you today. What’s wrong with you What’s new, what’s the news?

Ashley:
Tony Robinson, and it’s great to see you in such a great role with our new audience. And we always love our loyal audience who stay with us every week to learn more about real estate investing. And you guys are in the right place. Today a rookie answer, where we took a question that you asked us and we try our best to answer it for you and break down how to invest in real estate. So, Tony, what’s the question today?

Tony:
Awesome. So today’s question comes from the real estate rookie Facebook group, which if you are not there, you need to get there. It is one of the most active, newly hired real estate investing groups for newcomers on the planet, with a strong 30,000 plus members. Also, if you don’t follow Ash and me on Instagram, make sure you’re doing it. He @wealthfromrentals. I @tonyjrobinson. If we find some of your questions on our own social media, we will occasionally bring them to Ruki, answer here too. But today’s question is, I almost said Kevin Bacon, but his name is Rob Bacon, who may or may not be related to Kevin Bacon, but Rob’s question is, “How can I be sure that a wholesaler sending me a deal is not a scam?” ? Ashley, what are your thoughts?

Ashley:
Well, first of all, if anyone can feel that you are calling him Kevin Bacon, then you are, when you say that everyone calls you Tony Robbins.

Tony:
Tony Robbins, all the time.

Ashley:
Yes. So with a wholesaler, I think the biggest thing is knowing your own numbers and not relying on them. As far as scams go further, such as if they actually owned the home and could actually sell the home, there you want to do your due diligence and look at the county records, talk to an attorney, title company and find out about the property You get as much information as possible. And then to make sure the contract you are looking at is actually a valid contract if they offer it to you. And you can see an attorney on that and also do a little digging. So whose name is in the contract? Does that person really own the property? And I think that would be a good start for you. But knowing your number, don’t rely on any wholesaler to tell you what the rehabilitation cost is going to be, what the ARV is.
You need to know those numbers. They just have to bring you the deal. We also often talk about a real estate agent, to find out what you need from a real estate agent and choose your agent based on that. So if you need agents to show you the houses, it doesn’t matter if they are investor friendly because they need you to deliver them to your door. But if you need help analyzing the market, find an investor who knows the market and knows what an investor is looking for. So with a wholesaler going to be a lead stream for you and using them to send features you see. But as far as the numbers go, you should be able to pick it up from there.

Tony:
Yes. And I guess I also want to define for some of our rookie listeners what a wholesaler is and why Rob might be concerned about sending him a scam first. So, in the world of real estate investing, there are multiple ways to get your contract flow, right? To find out the possible way to buy the contract. You can find it on MLS, Zillow, Redfin, etc. সাইট You can work with a realtor. You can go directly to the seller, which means you can see a house that you want to buy. You can knock on the door of a person or send them a letter, or you can use the so-called wholesaler who uses a lot of direct seller marketing techniques like direct mail, cold calling, voicemail, text blasting. And they find people who are motivated to sell their property.
The wholesaler then takes those motivated sellers and connects them with the real estate investors. And they get a fee for connecting the seller and the buyer together. So, for example, a wholesaler can find a home that is worth, 200,000 after all is well, but they are able to get it under contract, $ 70,000. They then take that $ 70,000 deal and they probably re-assign it to a real estate investor for $ 80,000. And then the wholesalers get that $ 10,000 spread the difference between 70,000 and 80,000. So, that’s a wholesaler. Unfortunately, some market wholesalers have received a bad rap. There are lots and lots and lots of good wholesalers out there, but some new ones who don’t really know what they’re doing or they’re just not good people. So, Rob, this is a very valid question to ask you how not to get burned.
I think you hit a lot of good things, Ashley. Probably the only thing I’ll add, and Ryan Dosy actually mentioned it in the Facebook group. So I wanted to highlight that you should not send any funds directly to the wholesaler. So if the wholesaler sends you a deal and they say, “Hey, Venmo pays $ 10,000 for your deposit, run in the opposite direction, because it’s not someone you want to work with. All your money should be headed to the escrow. They should report a preliminary headline to make sure the title of the property is clear. So I think as long as you are going through the right channel, you should be protected from any possible scams, because the title is going to find out if there is anything wrong with that property.

Ashley:
Tony, there was gold. I think we should have started with that answer. That was great. I think to put it bluntly, this is for someone who is learning what a wholesaler is today and thinks it is needed in their team, how do you find a wholesaler? So you can go to meetups in your area and talk to other investors and see which wholesalers they are using. You can probably meet some wholesalers there. Give them your criteria. The best way I can find wholesalers is when I receive a text or an email or a letter from someone asking them to buy one of my former properties that I have now, I reply to that text message saying “No, I am not for sale” , But I would like to add you to the buyer list. ” And I’ve gotten on that list for various reasons. Why wouldn’t they want to add you? Why don’t they get you as a buyer instead of someone who just doesn’t respond to their messages.

Tony:
Another way that you can find the best wholesaler is through Facebook group. So if you go, Facebook, real estate, plus your city, there are usually some wholesalers who are active in that group. If you’re driving around your town and you see those banded signs, those little signs near the freeway entrance and things that say, “We bought ugly houses,” it’s probably the wholesalers, you can call them, let them know you’re me too. A buyer. So, there are definitely some creative ways to get on that list.

Ashley:
Yes. And you can even google that too. Buy a home or sell a cheap home regardless of your market. And maybe some find that way. And then look for referrals, ask them about other properties they’ve recently sold, and maybe look for those properties and see, “Okay, how’s the rehabilitation gone and the new owner contacted? If it’s still flipped or they have a bar or Anyway, ”and try to find some references that are not just the references of the people they are telling you about. You guys have more questions for us. You can post a question on the Real Estate Rookie Facebook group, or send us a voicemail at 18885 Rookie. And we’d like to play it on the show. And we’ll see you on Wednesday for another real estate rookie podcast.



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