This video talks about wholesaling mistakes – particular one big mistake that you do NOT want to make. Jordan starts off by saying he sees so much false information online and particularly social media, and he has a savior complex. He feels like he has to educate people who are making a bad name for those wholesaling information, and starts by giving a real-life example.
Listen to this Multi Family Mafia podcast where Jordan highlight wholesaling mistakes and enlightens us on what we should and should not be doing.
Before reading a real-life post he stumbled across on Facebook, Jordan asks listeners to weigh in on a simple question. Does this post give you the impression that it is a property being marketed for sale or an assignment contract (an equitable interest in a contract being offered for sale)?
The post reads something like this:
“Investment property for sale. Cash buyer only. 5 bed, 1 and a half bath. 1550 square feet located in downtown…. Asking 35,000 or best offer, needs some TLC. Won’t last. Contact me for details and pictures.”
When you read that, what is your impression? That this property is for sale or the contract is for sale?
Though there are different rules and regulations for wholesaling in every state, one thing remains pretty clear when it comes to wholesaling mistakes. If you are NOT the owner of the property, you can NOT market the property for sale. This is illegal if you do not own the property or are a real estate agent.
If you were taught to wholesale in The Kingdom, you wouldn’t need to market a property to a bunch of online groups. You would already have a buyer and your process would be much less hassle because you would know exactly what your buyer is looking for.
However, we know that some people don’t learn the correct way so Jordan fixes the post. He says he would have written:
“Hi guys, my name is Jordan. I am a wholesaler. I have a property under contract in blank city. This is what I know about it: It is a 5 bed, 1 and half bath, 1550 square feet. I am looking for a buyer to step in and take over my position in the contract. I’m a wholesaler. If you’re interested in this, I would love to meet you. I would love to sit down for a cup of coffee and share a little bit of information about this contract that I have an equitable interest in.”
A post like that would keep you out of hot water legally and does not sound like you are marketing a house that you do not own. Wholesaling mistakes happen, which is why we at The Kingdom do our best to set you on the right path towards real estate success.