Flipping Houses Wholesale in KC: Do you know enough to be dangerous?

I wholesale a house from time to time and that means a lot of different things to different investors. But basically you buy a house at a low price and then sell it on to another real estate investor so they can rehab it and sell it or rehab it and rent it. Or maybe just rent it.

Buy low sell low.

Flipping houses wholesale is a great place for real estate investors to get started. It does not take a whole heck of a lot of money and the key tasks that you either need to master or hire done for you such as Marketing for Motivated Sellers, Talking to Sellers, Calculating House Value, Figuring out the Cost of Repairs, Negotiating a Purchase . . . are all tasks that the average real estate investor needs to learn. If you can learn to wholesale, you have found a way to secure deals for yourself, no matter what niche or real estate investing you ultimately end up using.

What I personally see is that everyone who wants to sell a product or service to real estate investors focus on wholesaling because its the place that so many new investors start. So, if you pick the area where all the newbies start, you are going to sell way more of your book, tape, website, tool or whatever. Sadly, all these places that sell something to the wholesaler offer "FREE" training. Just "listen to my podcast and sign up on my free facebook forum" and you can learn everything you ever need to know for free.

Or can you?

One of the big wholesaler gurus - who found success as a wholesaler, created some technology and then opened up a free form and hosts a free event has great technology, but everything he creates is to teach you how to use his tool and spend more money with his tool, not actually to teach you how to wholesale. And there are several of these types of guys out there and they are all busy hawking the latest tool from all the other tech guys out there, not really teaching the basics of wholesaling.

I was on one of the FREEBIE forums where you can go to get your questions answered, not by anyone who knows what they are doing, but by everyone else on the forum learning, as they go, I want to cover a few of the posts so you see what I mean.

Question: How do I figure out what the house is worth so I can make my offer?

Remember, in wholesaling you have to accurately calculate comparable property values and accurately estimate the repairs and the cost of those repairs. Then put that all together to figure out what the investor buyer will pay you, so you can back off your profit and make your offer to your seller.

Answer on this forum: "Make it up, it's way easier" which will not only have you making really bad offers and not making any money but in the long run could get you sued. "Ask a Realtor" which really is a great answer, until you run out of Realtors willing to give you comps if you can find any to begin with.

Question: "I can't find anyone to pay my wholesale price, what do I do?"

First of all, if you make up your numbers you are not going to be getting anyone to buy your deals, so totally wasting your time and again - making no money. Second, the answers I have seen mostly say to walk on your seller. Which if you have the right contracts, you could just do and leave behind your earnest money deposit as liqudated damages. But again this could get you sued.

Question: "What do I do if the Kansas Real Estate Commission sends me a letter?"

No one really had an answer for that, most said to throw it away. Here at MAREI we took that question to one of our Attorney Members and she explained why the real estate commissions are sending out a lot of letters - mainly because wannabe wholesalers watched a free podcast and got their education for free off of really badly moderated forums and have no idea what they are doing. And so rather than actually wholesaling - which is legal by the way - most are breaking real estate law and if they get caught and receive a letter from the real estate commission - they should hire an attorney. They are facing fines into the $100,000 potentially and maybe even jail time.

So what's a person to do? I would highly recommend buying a GOOD Real Estate Investor Training Course on Wholesaling. The two people I highly recommend are Tom Zeeb and his Rapid Cash Generator Course and Bootcamp and Vena Jones-Cox and her course the Goddesses Guide to Wholesaling.

In both, they explain the basic mechanics of what you supposed to do so you are following the law. They explain how to get comparables, how to figure out repairs, how to calculate offers, how to talk to sellers and a lot more. Plus they help you out with the right contracts, the tools they find helpful, and the services they use to help you save time and money.

Now if you are in Kansas City - please take note that Tom Zeeb is in Kansas City in August - he will be explaining how wholesaling works and what you need to do to be successful at the August 13th MAREI meeting. He is coming back on Saturday, August 17th for a full-day workshop where he will cover the 5 key aspects that you need to know. At both, he will be offering his Rapid Cash Flow Generator System (home study) and his Bootcamp at a great discounted price (which I understand you can attend as many times as you need to if you purchase).

Get all the details and reserve your seat to both events at www.MAREI.org, The cost to attend the events, and to buy Tom's training is WAY cheaper than hiring an attorney.

Once you have some basic training. Some good contracts. Some sample marketing and the ideology behind the marketing. And know how to keep it legal. Go back to all these free podcasts and forums designed to sell you tools and see which tools you might want to implement. Or just stick to the basics - there are many ways to generate seller leads and they all work, if you consistently apply them.