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  • Wholesaling The HUD....

    Ok flipping homes forum...I have a problem, kind of a good problem though. I have many overseas investors looking to purchase properties in Atlanta. In the past I would purchase these properties with my cash then re-sell to overseas investor...not really wholesaling right? The problem I'm having now is the demand, I'm getting orders for 10-15 homes per month and don't have the cash to buy and re-sell with this type of volume. So I'm looking to just wholesale to these buyers, part of the problem is HUD and most banks do not allow assignments etc...which we all know. Just trying to find a way to do these deals...the key for me to get the business and keeping the business is keeping my cost low, which makes it tough to use transactional funding because my margin is so slim. With the promised volume business, I'm looking at $3k a deal(10-15)...with the posibility to scale up to 40-50 homes per month with these investors. Any thoughts would be appreciated...thanks.

  • #2
    Wow...Taking orders!!!!
    Double closing comes to mind and maybe holding some deals for a month or two If you have both ends covered & secured such as deals and buyers.... someone with money should jump right in and work something with you with no problems IMO.

    L.Souza-GA

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    • #3
      L.Souza...looking for money partners, I actually have one...but his cash is limited. There is huge opportunity to flip to overseas investors if you understand what's important to them...marketing/selling to these investors is a little different from what most of us experience wholesaling to investors here in the USA. If I had funds...I could do more deals with overseas investors then investors in the USA, as many of my oversea investors will buy retail. So whereas other wholesalers may have to put more time in finding a deal...I can literally go on the MLS find a retail property put under contract and re-sell as long as it fits the oversea investors formula. I have spent several years working on this niche...it's starting to pay-off.

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      • #4
        Pm me & lets talk...

        L.Souza-GA

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        • #5
          PM sent...looking forward to our conversation.

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          • #6
            Sounds good

            PM me so we can talk.

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            • #7
              Matt....PM sent

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              • #8
                Matt,

                First of all congratulations. Could you PM me as well. I would enjoy speaking to you.

                A couple of thoughts. Considering the number of deals you are talking about, I would consider either getting your own Real Estate License, Negotiating a Flat fee with a Realtor who works at a firm such as ReMax or buying into a RE office.

                I am a little confused because in the original post your big problem was small margins but then in a follow up post you sound like these oversea investors will pay close to retail. If they will pay close to retail then why would Transactional Funding be a problem?

                One thing I think you should think about is that as exciting and tempting as it is to do large numbers. Perhaps you should examine your numbers and see if doing half as many deals but twice as profitable would be the way to go.

                Once again fantastic job on your part.

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                • #9
                  A possible solution

                  houses4u------------------

                  How about putting them under contract in the name of an llc or limited partnership? Then sell the entity to your customers. If they are paying all cash, they could later shift into their own name if they want.

                  Good Flipping*********Ron Starr**********

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                  • #10
                    If you've got a track record, you are a lock for a business line of credit for a local bank or credit union.

                    Can you expand on your marketing campaign to international investors? How did you build your client base?

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                    • #11
                      If you really have that many buyers..

                      Use their cash...

                      Have them deposit the money in the
                      bank.... to purchase your houses...

                      You show the banker your contracts
                      with them to purchase the houses...

                      The banker sets you up a credit line
                      to buy the houses... based on those
                      two things...

                      However...

                      You should out of ever deal leave a little
                      money in the bank to build up toward
                      your own credit line...

                      But, Ron Starr's way is the easiest...

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                      • #12
                        Ron/Dave/Everyone....thanks for the good advice. Matt and Sam... sorry I haven't gotten back in touch,I have been tied up with client tours. I had investors come in from the UAE,Singapore & the UK. I will be in touch soon....thanks again everyone.

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                        • #13
                          i know this is obscure, but do you need a liscense to find homes and fix them up for resale? and where can i go to get investers to pay for the forclosed home, then i do my work fixing the home i find, and optioning to a buyout so i dont have to do anything to sell it?

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                          • #14
                            I'm interested in learning more about this, I have cash to invest and looking to grow my business and branch out into other types of real estate deals.

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                            • #15
                              Originally posted by ronaldstarr View Post
                              houses4u------------------

                              How about putting them under contract in the name of an llc or limited partnership? Then sell the entity to your customers. If they are paying all cash, they could later shift into their own name if they want.

                              Good Flipping*********Ron Starr**********
                              Ron...could you provide some details as how one would go about selling the entity? Thanks!

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