EXCEEDING YOUR EXPECTATION
What is Real Estate Wholesaling?
Hopester REI feels it is necessary to illustrate what Real Estate Wholesaling is and is not and that we do not do this.
Real Estate wholesaling is not Real Estate Investing. Wholesaling is a term that the “wholesalers” use to induce you to believe you will engage in Real Estate transactions and obtain properties at considerable discounts, with massive profit potential. You will not. There are usually two separate groups of individuals regarding wholesaling.
One group of individuals are trying to assign buyers to sellers’ properties. The other group of individuals offers very expensive and useless training programs that promises to have you become a successful Real Estate Investor/Entrepreneur. One group is the actual person(s), beating the pavement, trying to “assign” the property to a buyer contract. This individual is racing against the clock to find a buyer for the seller. If this individual assigns a buyer to a seller, they collect a finder/assignment fee.
The buyer of the property will pay the wholesaler’s markup in addition to the sales price. The wholesaler advertises a sales price and an inflated ARV indicating profit. The ARV is the After Repair Value, that they make up and is not supported by comps or appraisals. Once the subject property is assigned to a buyer, the wholesaler will collect a finder/assignment fee.
These wholesalers are not licensed by any State’s Department of Real Estate or any other authority.
The second group of wholesalers are what many call scammers. These are individuals that obtained a business license (LLC) and advertise as Real Estate Investors and Trainers. They offer to train you to become successful and lucrative Real Estate Investors and Entrepreneur. They will sell you very expensive training programs, that yield little results. They also advertise “property flipping” which is not accurate. They advertise that you can become a lucrative Real Estate Investor using other people’s money. They advertise you don’t need a Real Estate license, you won’t need to use your own money (other than to buy their training programs), you don’t need credit or need to have any knowledge or contacts to rehab the property. This is true because you will not own the property.
Hopester REI advises people to do as much research as possible. If it sounds too good to be true…. Obtain a written legally binding contract from the scammers/LLC indicating what to expect and what your cost will be. Regarding the many properties they advertise that they flipped and earned massive profits on, request a complete address of any one of these properties. You can verify the truthfulness of these claims through the county’s property tax records (free of charge) or contact us and we will access the tax records.
I and my team take exception to the unethical business practices of these wholesalers because they erode consumer confidence in our chosen profession. I and my team members are licensed, bona fide Real Estate Professionals. We have to be monitored by various state authorities, including the Department of Real Estate, to ensure we legally act in the best interest of the public. We have to adhere to a strict code of conduct, ensure all mandatory training is currently and we are in “good standing” with the public. Hopester REI continuously have Real Estate Investment Projects ongoing (locally, nationally and internationally). If you would like hands-on training and experience contact us.
Copyright © 2024 {HopesterRealEstateInvestings.com} - All Rights Reserved.