How to wholesale a hotel and what contracts should be involved?
Hey fellow hotliers and commercial real estate investors I was wondering if it was possible to wholesale hotels and if so anyone have experience doing so? I have a buyer and seller interested and was wondering how I could wholesale the deal to the seller. Thanks
[{"id": "itsrxl5", "text": "First you get a real estate license and represent either the seller or buyer or perhaps both depending on your state in the sale of said hotel and while you only walk away with a predetermined percentage you can rest easy knowing you aren't a sack of soggy shit wholesaler.", "replies": [{"id": "itv5tu2", "text": "Respectfully speaking wholesalers who actually know their shit do the same thing as a licensed realtor (market a property, connect a seller and a buyer).\n\nThe bad wholesalers do ruin it a bit for the good ones but in my experience I\u2019ve purchased several properties from wholesalers at better price points than with well respected realtors.\n\nOP get a good real estate attorney to write up your contracts and review the deal and find a title company thats familiar with assignment of contract deals.\n\nAlso before you present deals to your potential end buyers make sure you have the property under a well constructed contract (Use a lawyer not the Google template assignment contract every wholesaler uses) or else and end buyer like me will go behind your back and contact the seller and cut you out of the deal !", "replies": [{"id": "itve557", "text": "Whole salers are essentially acting as agents without a license I agree. Worse than that they generally prey on older uninformed ignorant home owners in already economically disadvantageous areas. \n\n\nAt best whole salers are unlicensed agents and worse outright thieves.", "replies": [{"id": "iu1l1yc", "text": "You dont need a license to seel you just need money or resources its that simple....tell me that you have a boss without saying you do lol. Be a worker all your life like the rest.", "replies": [{"id": "iu1ll7q", "text": "You dont need a license to sell land you own sure but you do need a license to act as a broker/agent. \n\n\nAgain whole salers are taking advantage of poor ignorant home owners stealing their equity and wonder why no one likes them.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "iu1kupq", "text": "Who told you that you needed a license to sell property ...... Youre so uneducated its really sad that youre even under this post making yourself look stupid. Why would you become an agent, have the broker take a huge chunk of your money instead of keeping the profits for yourself. Wholesalers who know their numbers can easily sell to anyone legit. So you would become an agent and make 3% on $250000 or possibly resell that property for an easy $100,000.....Your choice. You want to work for someone go right ahead but there are people who want freedom without someone wanting to take most of their after they did all the hard work.", "replies": [{"id": "iu1lap5", "text": "Specially me, the state of Texas trec.texas.gov \n\n\nThe difference between what I do and what a whole sellers does is pretty minimal in most instances, which is why a lot of states view it as practicing real estate without a license. \n\n\nAnother note, you're stealing equity from generally ignorant or uninformed poor home owners. \n\nI charge a fee for a service I provide.", "replies": [{"id": "iu1lpxc", "text": "That has nothing to do with you at all youre just being petty. Theyre not stealing anything at all, they get run down houses and sell them... tell me what the issue is in doing that if the owner basically doesnt want the property? You should be working with them instead of bashing them youll get more deals that way.", "replies": [{"id": "iu1mdiv", "text": "You find run down home. You tell home owner you will pay x mount and then assign that contract to an investor for y amount knowing full and well that you are profiting off the home owner not knowing the market value of their home. \n\nYou are stealing equity, you're not even buying the home you're trying it up in a contract which you cannot perform on. You're a middle man in every worst way. You ad or bring no value to anyone. \n\n\n\nWhole salers don't bring me deal lmao whole salers cold call me and waste my time.", "replies": [{"id": "iu1mywn", "text": "You don\u2019t make any sense because a run down home won\u2019t sell for market value . When you don\u2019t keep your home up it\u2019s loses value just like with anything else", "replies": [{"id": "iu1n69o", "text": "It's still worth something, and you know that which is why you low ball. You figure out what it will sell for fixed up get a rough idea of what it may cost and then you offer them something low enough to entice them but that still leaves you room for theft.", "replies": [{"id": "iu1p730", "text": "Thats exactly what someone who would fix and flip would do... so again whats your point? I dont know why you keep saying its theft its only theft because they are making more money than you. Learn the game, many real estate agents wholesale as well youre just being petty. If its illegal then show me where its theft and illegal....you can't. There are only like 3 states where its illegal and its technically not even illegal if you double close like in states like Oklahoma, Pennsylvania, and Illinois. There are loopholes to everything.", "replies": [{"id": "iu1pe8g", "text": "You're not fixing lmao just Flipping. At least open door has the courtesy to go bank rupt paying full market value when they tried it lol.", "replies": [{"id": "iu1rltg", "text": "And pre foreclosures\u2026.explain your thoughts because most people lost their holes to the bank which they sell off. Wholesalers  can pay off their debt , put money in their pocket (if they\u2019re ethical) and still make a profit", "replies": [{"id": "iu1sgl1", "text": "The whole saler does none of that, the investor does. The whole saler just steals what little equity the home owner may have.", "replies": [{"id": "iu1tav4", "text": "No that\u2019s what a wholesaler can do . You literally have no idea what you\u2019re taking about lol. A wholesaler can do all of that but passing the property off to an investor. How are they stealing the equity when they are going to lose the home and the wholesaler offers them a price to pay the debt and give them money. You just want them to lose it and they gain nothing from the transaction . They\u2019re not stealing any equity. They lose that to the bank when they stop paying the loan ..:that has nothing to do with the wholesaler at all", "replies": [], "depth": 12}], "depth": 11}], "depth": 10}], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "itsx2i1", "text": "I\u2019ve wholesaled a few hotels over the years. Just get them under contract with yourself as the buyer and assign it to the end buyer for a higher amount. That\u2019s the simplest explanation. It\u2019s not much different than a typical wholesale deal. Aside from using a commercial contract and at lease in my state, notifying the seller that you are actually assigning the deal. Double closing is possible as well. But that\u2019s gonna make closing costs pretty high for the end buyer.", "replies": [{"id": "ixei487", "text": "Where do you pull the data to get the deals? County?", "replies": [], "depth": 2}, {"id": "ixfv2qu", "text": "If you have buyers I got a hotel lead in KY", "replies": [], "depth": 2}, {"id": "ixfv4al", "text": "Off market\u2026 if you want in.", "replies": [{"id": "ixfvc97", "text": "No thanks, I stick to Florida at the moment. And I would only look at a deal you directly had under contract, No daisy chains for me.", "replies": [{"id": "ixfwerz", "text": "I don\u2019t do daisy chains. I\u2019m always direct to seller. Cool if I shot a pm?", "replies": [], "depth": 4}, {"id": "ixfwmc0", "text": "This hotel one came from one of my wholesale buddies. I\u2019m transitioning to do more CRE deals and plan to buy myself. If you have buyers already with a neat BB we can collaborate and you can sell what I acquire.", "replies": [{"id": "ixg6sxu", "text": "Sure sent me a pm. But I only want Florida deals.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ittnruk", "text": "So call Eastdil and tell them that you wanna tie up a $200M hotel and then find another company that eastdil hasn\u2019t already contacted and sell it to them while knowing absolutely nothing about the inner workings of complex full service hotel transactions.", "replies": [{"id": "ittnwqt", "text": "I already have buyer and seller lined up\u2026 i own hotels myself i understand the business quite well i was raised in it", "replies": [{"id": "itu22cu", "text": "You could buy from one and sell to the other, or you could just broker the transaction between the two parties.", "replies": [{"id": "itucw3q", "text": "Are you aware that majority of hotels sold are off market deals?", "replies": [{"id": "itupgo1", "text": "That is off market", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]