Real Estate Wholesaling Made Simple

I am in a very slow market right now but I am still having alot of success Wholesaling Real estate Buying could be very dangerous if you dont know what your doing, but I’m loving it. Where do you buy in a bad market? Easy answer, anywhere you can make money. I like the “bad areas” right now. Why, because most investors dont want to buy there. The nice part about bad locations is that the homes are so cheap, that while your waiting to sell you can cashflow like crazy with tenants.

A few of My “Bad Location Homes” have been like this:

paid 26k, repairs 5k, rented $675, sold for $62k
paid 38k, repairs 5k, rented $1000 (2 unit) sold for $62k
paid 33k, repairs 5k, rented $675, sold for $62k
paid 30k, repairs 12k, rented $675, sold for $62k
paid 30k, repairs 10k, rented $675k, sold it for $62k
Total paid $157, Repairs $37k, Sold $319k Gross Profit $125k

These are all homes that anyone could have bought, but they were in the “bad areas”.

Im beginning to think that “good areas” might be “bad areas” for the wallet.

The neat part with bad area homes is you spend 40k to make 20k, not spend 100k to make 15k.
For more info on real estate wholesaling visit www.InvestorsLunch.com

Or use my proven real estate system at www.TheForeclosureCollege.com

Look at the cash on cash returns.

Good area= 15000/100000 =15% cash on cash return

Bad area= 20000/40000= 50% cash on cash return

Good area rents $800 on $100,000 home .08% return on Rent

Bad area $675 on a $40,000 home 1.6% return on rent

But wait, your thinking bad area bad tenants, good area good tenants, right?

Wrong. Bad tenants are bad tenants ANYWHERE, good tenants are good tenants ANYWHERE.

Eric Medemar Specializes in Real Estate Wholesaling, Grand Rapids Foreclosures, Grand Rapids HUD homes, and Grand Rapids Rental Properties

It seems like everyday I talk to someone who is wanting to start real estate wholesaling. Wholesaling real estate is fairly easy once you lay out a good plan and implement it. One of the main problems that I see people having is not having good written goals in place. The process of writing goals gives you something concrete to fall back on when your concious starts questioning your every move.

Have you ever driven accross the U.S? I am sure that many of you have at least traveled a thousand miles or more from home. Imagine for a minute trying to drive from New York to Califorinia without a map, and no knowledge of the highways. Instead you decide to go by following the north star. Sure you could get to California eventually, but it would be much quicker and more efficient to have a map in place. Intstead of just following a star, you would go from New York, to Kansas to etc, well you get the idea. A map essentially breaks down the huge distance from New York to California into small easy to follow steps.

Proper Goal setting will do the same thing. They take the large arduous task of Wholesaling Real estate, and break it down into mini steps, that can be more easily achieved. For help in building your map to real estate success visit me at www.TheForeclosureCollege.com , I will give you every tool that I have used to achieve real estate success.

Learn more at www.TheForeclosureCollege.com
or www.InvestorsLunch.com

Eric Medemar specializes in Grand Rapids Foreclosures, Grand Rapids Rental Property and Grand Rapids HUD homes.

Eric Medemar is a real estate investor who specializes in Grand Rapids Forclosures, Grand Rapids HUD homes, and Real Estate Wholesaling. For discount carpet check out http://www.carpetliquidationsale.com/

Last year I bought a home that somebody died in. I found at after closing when I was talking to the neighbors, I have 35 rentals so it seemed a welcome addition to my family of disfunctional homes. They had told me that it was hard to keep tenants there because it was haunted. I found out that a grand kid had stabbed his grandma 23 times and she layed dead in the house for a couple of weeks. Later he was killed elsewhere up the street.

Anyway, I had another of my tenants call and wanted to move into the house. She had been my tenant for over a year at another property and always seemed sound in mind. I didnt want her to have any preconcieved notions about the house being haunted, so I let her move in. After a couple of weeks I called to see how everything was going, I asked her if everything was going OK and she said “Yeh but the house is haunted”. I said how do you know, did someone tell you that? She said no I came down the stairs one night because there was some knocking in the kitchen and there in the kitchen was an old lady and a boy. Let me tell you every hair on my body was standing on end. She went onto tell me how if she closes certain doors in the house at night that they will be banging all night. I thought it must be the wind but she said it only happens at night and they learned just to leave the doors open. She had been my tenant for a long time before this and never had any problems so I believed her.

I asked her how she was so comfortable with ghosts, and she told me that she had rented another house where a guy had killed his girlfriend then himself, and she would see them around the basement.

A couple of weeks later I woke up and was watching the news and saw the news reporter at the scene of a homicide. Nothing new, except for the fact that my already haunted property was in the background with police tape around it. I guess a guy got shot outside and ran inside to die. Needless to say the neighbors were not happy with the people who I moved into the house. The girl was OK but her friends had shot the guy. She went to jail and the neighbors threw bricks through the windows and then ransacked the home. I ended up about $2000 ahead with insurance money.

The new tenant that moved in called when he turned on the furnace for the first time and he had been vomiting all morning. I had never turned the furnace on since I bought the home in march. Evidently when grandma died in the basement it was next to the furnace and the smell that the furnace was pumping out was enough to make my tenant repeatedly vomit for the afternoon. Earlier this month I bought another home that a man had committed suicide in. Well I was cleaning out his stuff and came to a drawer that was filled with about 500 bipolar pills that he had not taken. Hmmm….Maybe he should have taken them. You gotta love those Grand Rapids Rental Properties

I was never a big believer in ghosts myself, and my wife was always telling me that our first house which was a rental was haunted, she would tell me in the morning that she could here banging on the glass. Me, being the man that I am just told her that it was the bushes on the windows. Until, the night she woke me up with the quick jab to the throat and said Eric listen its here. I groggily rubbed my eyes and was just about to get up and walk her to the window where the “bush was rubbing” just as my toe hit the floor, the basement door right across from our bedroom door started shaking rather loudly and the handle was twisting very fast back and forth. It was a old wood door with a rusty handle so the sound was unmistakeabley horrifying. Thats when I came a believe.

For more info on real estate wholesaling visit www.InvestorsLunch.com

or to use my real estate system www.TheForeclosureCollege.com

Eric Medemar specializes in Grand Rapids Foreclosures, Grand Rapids HUD homes, and Grand Rapids Rental Property.

Looking back at the high school and college summer jobs that I worked, I am amazed at the amount of time and energy that it took me to make $4,000-$5,000 in a summer. I would slave away at the construction site the entire summer for $6-$10/hr.

I was working so hard, and so long, that often times even in my free moments I would fall asleep instead of being out enjoying my youth. I guess at the time it was all that I knew, therefore it was all that I did. “I wish I had met me”, I now think to myself looking back at the 5 summers of intense labor.

I would have told me:
1. You do not necessarily have to work hard, but instead learn to work smart.
2. In order to make more money, learn what the people with more money do.
3. Become knowledgeable about making money, instead of becoming knowledgeable about framing homes.

These 3 rules of wealth would have bought me at least 3500 hours of freedom over the 5 summers of manual labor. If I had it too do over again I would have learned about real estate investing, first by becoming a real estate bird dog, then a real estate wholesaler, then a landlord.

As a real estate bird dog I would have spent my mornings, placing signs around my area to seek out potential sellers. Then I would have spent 1 or 2 hours a day locating potential buyers for the properties that people called in for sale. Once my signs were in place and my buyers list was developed, I would have taken my phone to the beach. From the beach, I would have become a real estate matchmaker. Taking calls from sellers, and connecting them with my buyers for profit. $1,000-$5,000 a deal would have made me $10,000-$20,000 over the course of the summer.

At the end of the summer instead of being tired and worn, I would be tan and happy. Instead of knowing a little bit more about framing a home, I would know a little bit more about how to make money through being a real estate bird dog, or real estate wholesaling

Today 10 years later and much more knowledgeable, I have learned to make money, and that is what I do. The builder who I slaved away my summers too, is now working for me. Yesterday he was trimming my ceiling on my summer house, today he is buildling cabinets for my current home which he built 3 summers ago. He enjoys building, I enjoy making money. He learned how to build, I learned how to make money and have him build.

Everyday I am on the search for inexpensive courses and books that I see in hopes of learning just one more thing about wholesaling real estate, or real estate bird dogging. I have a library of over 120 books and audio books on real estate investing, sales, marketing, and motivation.

I hear from alot of people that would like to know what INEXPENSIVE course they could by to get started investing. Up until a couple of days ago, I would just tell people to pick up as many good books as possible about real estate investing.

I know it may sound very self promoting but I certainly wish, I would have met me, back then, about 12 years ago when I graduated highschool. I would have spent my summers finding just one house to assign real estate contracts on and then took my $9,000 and quit for the summer, to spend time enjoying being young, instead of slaving away at construction, trading dollars for hours. I see young people today trading there last bouts of freedom for $7.00 or $280 week or $1080/mo. So one good wholesale deal could buy 9 Months of freedom. Not to mention skills that could put food on the table, and a Ferrari in the garage for the rest of your life. I could go on and on about the beauty, and the time lost, when I wasnt real estate wholesaling

Lets talk about wholesaling real estate over lunch www.InvestorsLunch.com

Author: Eric Medemar is a real estate wholesaler specializing in Grand Rapids Foreclosures, Grand Rapids HUD homes, and Grand Rapids Rental Property. He has also put together a great course for Bird Dogging Real Estate

For Lake Michigan Homes Visit http://grlakefront.blogspot.com/

As a realtor who loves wholesaling real estate, I cannot stress the importance enough to have full disclosure to all parties both buyers and sellers, you also need to be sure to get the disclosure in writing as I am sure you all know.

The beauty of real estate wholesaling is that it can be done for any price property if you get a proper buyers list in place. I had spent years locating properties for other investors and then taking my commission and walking. I was selling to the same guys everytime, so there was great money and little effort. Today I locate properties that I know my buyers will like, and instead of going through the hassle of calling them, and trying to get them out to the properties, I put them under contract myself, and then do a new contract with them.

The eisiest way to wholesale from a risk standpoint is to assign contracts, the problem is many banks wont allow you to assign contracts, so to get around that you can either do a back to back closing, or add the customer on to the aggreement, and then deed yourself off after closing.
I know to most of you $22k for a home (refering to part 1) seems like nothing. It is far below typical price in my market as well. The home just needed alot of work. Many people would have rehabbed and made a slower dime rather than my quick nickel. I have other investors that done the same thing on $500k homes, for example one of the gentlemen that i work with Put a home under contract for $350k and then sold it to a buyer that was already in place 2 days later for $500k on a 6 month lease option with 80k down. He made over $150k for locating and holding a property for 6 months. That really isnt that bad of money!

I will be continuing to ad to “Why I love Real Estate Wholesaling“

Eric Medemar specializes in Wholesaling real estate, flipping real estate, and investment properties including Grand Rapids Foreclosures, Grand Rapids Rental Property, and Grand Rapids HUD homes.

I have been wholesaling real estate in Grand Rapid michigan for a couple of yoars now, I dont know why all realtors do not get into wholesaling real estate.

Wholesaling property is a great way to make far more than an average commission without having to do half the work. Here is an example of a wholesale deal that I did a couple of weeks ago, I get a call from another realtor about a home coming on the market for $22,000, I put the home under contract that day, the next day I called a guy that I know that buys in that area. I sell the home to him for $31,000, after all expenses I will pockt $8000, instead of the usual $660 commission that most realtors would have ended up with.

To learn more about real estate wholesaling visit www.InvestorsLunch.com or www.TheForeclosureCollege.com