Thread: Wholesaling Using an Investor Firm

Originally Posted by rogerthert

Hello, I just had yet another question. This again is dealing with wholesaling of contracts.

I contacted one of those "we buy houses" ads. According to the gentleman I spoke with, they are investors who know investors basically. They would forward my deals onto investors.

My question. Does this mean that I would be paying the company a fee as well because they hooked me up with an investor? Because he's not the one that's buying it, the investor he was able to find would be.

And is there any way I could get ripped off doing this, or end up owing someone out of pocket expenses? I have to be very weary of this.

Thank you again for your help. Everyone here is extremely knowledgable and I appreciate it very much!

Why not cut out the "we buy houses" guys all together and find the investors yourself? It's not hard to do, put an ad in the paper and on craigslist, amongst other places. Join your local investors association and let everybody know you have deals.

thanks for the response jared.

but am i right when saying that? will they find me the investor, but then I have to pay them a fee too?

thanks!

Originally Posted by rogerthert

thanks for the response jared.

but am i right when saying that? will they find me the investor, but then I have to pay them a fee too?

thanks!

No, you don't pay them a fee. If you send them a deal they mark it up and get paid from their buyer.

ok. confusing. but alright. so basically. they take care of everything for me if i give them the contract? meaning reassign it to the buyer, all id do is sign to transfer the contract?

They usually mark it up a lot. If the "we buy ugly houses" guy is taking a property off your hands you are selling it WAY to cheap. These guys buy stuff at very deep discounts. Find you own investor through a local investor group or craigslist.

i see. i knew there had to be a catch. it just seemed to easy that way. so...this is all very confusing to me. im just trying to get a good start.

Originally Posted by agentsranking

They usually mark it up a lot. If the "we buy ugly houses" guy is taking a property off your hands you are selling it WAY to cheap. These guys buy stuff at very deep discounts. Find you own investor through a local investor group or craigslist.

if you really want to get the house sold, don't rule out any options. I wholesale properties provided by owners that need to get a house sold fast. Most of the buyers I deal with will not pay for a house if it is marked up too much. The numbers have to make sense.

The we buy houses guys operate in the same way. The reason why we have to get properties at low prices is because the costs of the deal have to be paid for out of the equity, as does our profit (or the realtors commission)