Monthly Archives: April 2011

Wholesaling Real Estate: The Basics

Hey guys, Zack here. I came across this great blog post that I thought I would share with all of you. It is from an online magazine called Bigger Pockets. It is sorta a dummies guide and break down of the basics of what I do and what we are all about… wholesaling properties baby! Why am I sharing this with you? … Simple, you need to understand the basics and foundations before you can apply the lessons that we teach and the knowledge that you gain. So, here it is:

Wholesaling real estate provides an opportunity for someone to build income with little capital or credit. All it requires is ambition and some specialized knowledge. The more ambition you have, the more money you will make. Wholesaling does not require a real estate license. A license is not required to buy or sell any property that you have an equitable interest in. That interest can be a contractual interest (you have the property under contract) or you actually own or have title to the property.

What is Wholesaling?

A wholesaler in a nut shell puts property (normally distressed property) under contract and assigns or resells the property to another investor. The investors a wholesaler sells to either use cash, lines of credit, or hard money loans. This allows quick closings on properties that sometimes need extensive repairs.

A wholesaler lives off of the idea that price overcomes all objections. If you can sell a property for a low enough price it doesn’t matter what’s wrong with it, somebody will buy it. A wholesaler focuses on developing two things. Finding deals and their network of investors to sell to.

Getting Started Wholesaling Real Estate

Getting started, a wholesaler should normally not ever buy a property. You put properties under contract with a contingency and focus on quickly selling the property for more money to other investors. If you end up not being able to sell the property before you are expected to close then you utilize your contingency and walk from the contract.

A wholesaler is a middle man, and a good wholesaler becomes a very well payed middleman that other investors love. The thing is that if you have a good enough deal under contract, there are other more established investors out there that will be glad to pay cash for it in a matter of days. If you have a house that will sell fixed up for $100,000, it needs $10,000 in remodeling, and you have a contract on it for $55,000, then with a developed investor network you could have an investor buyer for it for $60,000 in a matter of days. You sell it or assign the contract for 60K, you bought it for 55K so you just made $5,000 in a matter of days.”

– Written by Joshua Dorkin

 

Hope you guys enjoyed that, until next time…

Zack Childress

 

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Why buy Real Estate in Huntsville?

Huntsville, AL has been officially named the 2nd largest city in Alabama. Huntsville has grown from 158,216 in 2000 to 180,105 according to the 2010 Census. The Tennessee Valley BRAC Commission states that the 2nd Recruiting Brigade will relocate this year. It will put roughly 700 transfers to the U.S. Army Redstone Arsenal in Huntsville, AL this year along with 782 jobs expected to open. Redstone Arsenal is expected to receive 5,000 positions from the Arlington, VA area, but employ several thousand more locally.

By the time the relocations set forth during the BRAC an estimated 4,700 new people will have been moved to Huntsville, AL due to job transfers. The 2007 Coldwell Banker Home Price Comparison named Huntsville real estate “The most affordable residential real estate market in Alabama.” Forbes Magazine named the Huntsville-Decatur Combined Statistical Area as “The 6th best place in the nation for doing business, and number one in terms of the number of engineers per total employment.”

“Buy a lot in Huntsville,” says Randall Griffin, the CEO of Corporate Offices Trust. Based on predictions of more military-related growth along with talks with Washington officials, Griffin gave that advice in a conference of commercial real estate pros. Griffin states, “The next round of base closings is expected in 2015.” However, another official believes it could be sooner than 2015.

In just the first two months of 2011, over 1,000 houses have sold in Huntsville and surrounding areas. Click Here to see a complete list of the real estate market from 2000 through February 2011. In addition to BRAC, Huntsville Hospital has won the rights to build another hospital in Madison County. Groundbreaking started in December of 2009 and is expected to be complete by February 2012. This hospital is projected to initially employ 300 people. Click Here for the latest newsletter.

 

Until next time..

Zack Childress

 

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Mastermind Day was a great success!

The first Mastermind Day for our coaching students was held on March 16, 2011 in Atlanta, GA. We were able to sit down with Trish Williams who was in the room during this great closed door event and this is what she had to say–

“First off, to try and put into words and express the emotion, intensity and shear amount of information that was shared and came out in the Mastermind Day is hard to do. We had an amazing open table and open forum dialogue. Students were able to discuss details about themselves and their business with the group to get productive criticism and points from not Zack alone but also participants. I am unable to disclose details shared in the room because we all agreed that ‘what was shared in the room, stays in the room’, it was closed door and open forum. What I can say is this, to be able to feel that safe and secure to share those intimate details in that room with everyone speaks not just highly of Zack but also to the caliber of students that we have. Many people that I spoke to told me that not only was that 1 day intense, RAW and effective but the brutal honesty was so that everyone benefited from it. Everyone said that they can’t wait for the next one. The small, select group setting offered an outstanding learning experience no matter what level you and your business are at. Everyone was able to leave with knowledge and a plan to bring their business, whatever their business was, to the next level. If I had to put the entire day into only one word, it would have to be ‘FIERCE’! ” – Trish Williams

Well, what more can we possibly say other than this … if you missed this Mastermind Day with Zack, we strongly recommend you get to the next one!

 

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