Is this legal to do without a real estate license?

Absolutely! I'm mean if I would of had all of the proper paper work done than yeah of coarse. Technically My mentor didn't have to pay me if he didn't want to. There"s a bunch of lope holes that allow this to be done but if I slipped and made a mistake it could cause me alot of trouble that I can't really afford that's why I'm taking out the time to learn everything first.

The whole idea of wholesaling is simple and great. You find someone selling a house usually an F.S.B.O in financial trouble,pre-foreclosure, divorce, or the best ones are the one selling because there house has to many repair issues they don't want to deal with. I then get them to sign a contract stating that they will only sell this property exclusively to me, usually with in a 30 day time period and I pay them there earnest money. I then market the property to other investors,wholesalers and sometimes buyers. telling them I am selling the property at a wholesale price(usually about half to 2/3 the retail value) and once they decide to buy I do not really selling them the house, I am really selling them the rights to my exclusive contract. The contracts are built with clauses allowing me to back out of the deal at any time but don't allow the seller to sell to anyone else until the expiration date. If they do I can sue them! sometimes you can tell the seller what you are doing and sometimes you just make them think you are really buying the house,usually they don't care as long as they sell. The basic idea of wholesaling it changes once you get into short sales, REO, rehabbing, etc..

Only In America!

There are a number of reputable real estate investment companies across the globe. I suggest doing some online research, find a local real estate investment company and go in to have a conversation with them. Real estate investment can be relatively easy and safe if you use an established company. Going into it alone is more difficult and requires significant funds.

Are there any good books to start with?

Here's a link to a video that referred me to some books and the rest are links that helped me get a basic grasp of the investing industry


http://www.youtube.com/watch?v=cQQZlrm64hM


http://www.youtube.com/user/uglyhousedepot

http://www.youtube.com/user/TeachMeFlipping#p/a/u/0/Dl2nt6HQruU

http://www.youtube.com/user/jimmyvreed

thats just a few enjoy!

You won't be able to invest like you would have been able to only a couple of years ago. Then, all you needed was a pulse. Now, unless you're trying to move into a house for at least 12 months (at which point you could qualify for a 3.5% downpayment with the FHA) then you won't be able to get anything for less than 20% down - even then it's not always easy.

Owner finance.. When the Seller finances their own property, they are sometimes inclined to take little or no money down.

And today, you'll find more Sellers willing to be creative in moving their property.

[quote=Doin' bpose]No you have to have money. Whether it's yours or borrowed, you have to have money. I suppose you could inherit something or try ownership through adverse possession.[/quote]

I'm afraid I'll have to disagree! Nothing personal, of course. However, I have been in the business since 2003 and there are definitely strategies that require absolutely no money!

Consider Wholesaling for example: I find a home owner who's behind on their payments, nearing foreclosure. Lets say its a $200,000 home with about 100k in debt remaining. I get the property under contract for $110,000. I then find an investor that wants to buy quickly because of the equity position. I then sell them the contract for $15,000. We do a simultaneous close at escrow and the investor writes a check for $125k. Escrow writes a check to the homeowner for $110k and one to me for $15k. The deal is done and all parties are happy, the homeowner saved their credit and walked away with 10k to help them get back on their feet. I made 15k for structuring the deal and the investor can now fix n flip, buy n hold or whatever else he/she has in mind!

Of course, the process is more complicated than it sounds but I have mentors literally doing upwards of 50 of these every single month, month after month... All with NO MONEY and NO CREDIT!!

I have a FREE ebook that can help at
http://www.kealakanae.com/freeebook

I am familiar with that concept, but thet topic of the thread is What is the most easiest way to get into real estate investing not I am new to real estate investing, what is a really complex way to go about it. What you are describing is not for new comers. It requires deep experience and a wide network of contacts. Even then some would consider it sketchy practice. In your scenario, the best interest of the home owner is to sell closer to market and take the equity into their future.

[quote=Doin' bpose][quote=TheSuperpreneur][quote=Doin' bpose]No you have to have money. Whether it's yours or borrowed, you have to have money. I suppose you could inherit something or try ownership through adverse possession.[/quote]

I'm afraid I'll have to disagree! Nothing personal, of course. However, I have been in the business since 2003 and there are definitely strategies that require absolutely no money!

Consider Wholesaling for example: I find a home owner who's behind on their payments, nearing foreclosure. Lets say its a $200,000 home with about 100k in debt remaining. I get the property under contract for $110,000. I then find an investor that wants to buy quickly because of the equity position. I then sell them the contract for $15,000. We do a simultaneous close at escrow and the investor writes a check for $125k. Escrow writes a check to the homeowner for $110k and one to me for $15k. The deal is done and all parties are happy, the homeowner saved their credit and walked away with 10k to help them get back on their feet. I made 15k for structuring the deal and the investor can now fix n flip, buy n hold or whatever else he/she has in mind!

Of course, the process is more complicated than it sounds but I have mentors literally doing upwards of 50 of these every single month, month after month... All with NO MONEY and NO CREDIT!!

I have a FREE ebook that can help at
http://www.kealakanae.com/freeebook [/quote]I am familiar with that concept, but thet topic of the thread is [b]What is the most easiest way to get into real estate investing[/b] not [b]I am new to real estate investing, what is a really complex way to go about it.[/b] What you are describing is not for new comers. It requires deep experience and a wide network of contacts. Even then some would consider it sketchy practice. In your scenario, the best interest of the home owner is to sell closer to market and take the equity into their future. [/quote]

Thanks for sharing your opinion... What if I told you that this exactly how I got started in the business?? Would that change your mind about whether or not its for newcomers?? And what if I told you that after taking a couple courses on this strategy I had my first deal completed within about 2 months?? Would that change your mind about needing "deep experience and a wide network of contacts"??

As far as being sketchy... Yes, the best case scenario would be for the home owner to get as much of the equity out as possible, but in the VERY common occurrence that their property is not selling, or that they simply DO NOT have the time to wait for a Sale before an impending Foreclosure, trust me when I say they're not complaining!! Should I not earn some cash for my efforts and helping them get what they say they want... to sell fast and avoid Foreclosure on their credit report?? As an agent do you forfeit your fees when helping a seller, since that would obviously be "best case scenario" for them??

I'm also well aware of the thread title. This strategy requires No money and No credit, probably the 2 biggest obstacles for newbies! Also, it doesn't leave a newbie susceptible to being personally attached to a property that they speculated on when the market shifts, probably the BIGGEST downfall for newbies!

No renters, agents, fees, maintenance, speculation of future market standing and so forth...

This strategy is also one that MANY of my mentors used to get started. It's a great way to learn the biz with virtually no risk!! Experience will eventually get them in a position to know how to turn their massive income from these deals into passive income by buying and holding.

What is your opinion of the "easiest" way to get started??

I think it is predatory and parastic. If that happened to my Mom it would be devastating to her life.

@ Doin' bpose

Really? More devastating than an actual foreclosure?? I'm not sure what you mean... Perhaps you mean that you'd rather have your mother's house and all thats left in it seized by the bank? You'd rather her have her credit ruined for 7-10 years? You'd rather the lenders and IRS be able to seize her accounts and other valued property to make up for what she still owes?? Is this what you mean??

If so, I'm glad I'm not your mother!

So did you propose to make that purchase with CASH or with 100% Financing; or just hope that a naive Seller didn't ask "Where's the money coming from ?"

Perhaps that quick transition could be fleshed out a little bit. I deal with a lot of folks who only give the appearance of being naive . . . . for a little bit; and then we're rudely awakened by the sharp tack that's hiding inside.

That's a good question and an easy one to answer. It may vary from one situation to the next, however typically I inform the seller that I can have cash to them within 30-45 days (if I don't manage to make it in that time frame we can always discuss an extension)

Furthermore, I believe... disclose, disclose, disclose... I tell the homeowner exactly what is going on behind the scenes. I let them know that I work with various investors whom are looking for good deals. I also let them know that everything starts with the contract! My investors need to see that the homeowner is serious, and that there is a written agreement regarding the purchase price. Its important to me to be honest with home owners throughout the entire process. There is no point in shady, backdoor dealings just to have them surprised at the closing table and end up walking out on a deal I worked hard on! When investors talk about "motivated sellers" or "distressed properties" this is exactly the type of home owner they're speaking of. The key difference between them and the sellers most agents are representing is that they don't want to sell... they NEED to sell, and FAST!!

BTW... every contract is also accompanied by a "Cancel Anytime" clause, this way if they find another buyer by chance, they know they can cancel the deal at anytime! I'm not looking to take advantage of anyone but if you can find a need and fill it, there's often a paycheck waiting there for you.

Does your Contract include a sizeable Earnest Money Deposit to be held by the Seller OR his Broker OR his Attorney ?

Or would that make it just too complicated and slow things down ?