Michigan Real Estate Investing

[Jonathan Heacock]

I have a property in Jackson Michigan under seller financing it was my first time taking this route. I don't have the time to rehab the place. So I am thinking of selling it. I want to know the pros and cons should I take the traditional route and go through a agent or look for wholesalers? 

[Ibiene Solomon-Zacchaeus]

Quote from @Jonathan Heacock:

I have a property in Jackson Michigan under seller financing it was my first time taking this route. I don't have the time to rehab the place. So I am thinking of selling it. I want to know the pros and cons should I take the traditional route and go through a agent or look for wholesalers? 

Well I'll say If you prioritize speed and convenience, selling to a wholesaler might be the better option. However, if maximizing profit is your goal and you have some flexibility with time, going through a traditional agent could result in a higher sale price. It may also help to speak with both agents and wholesalers to get a better sense of your options before making a decision.

[Drew Sygit]

@Jonathan Heacock if you go with a wholesaler, understand that they will only expose your property to whoever they have on their distribution list.

So, recommend only giving them max of 30 days to sell it. Them move on to an agent listing.

BE CAREFUL! 

We know of several wholesalers that will place liens on properties without telling their clients. Potentially becomes an extortion issue if you hire an agent to list and sell.

[Randy Charboneau]

Quote from @Drew Sygit:

@Jonathan Heacock if you go with a wholesaler, understand that they will only expose your property to whoever they have on their distribution list.

So, recommend only giving them max of 30 days to sell it. Them move on to an agent listing.

BE CAREFUL! 

We know of several wholesalers that will place liens on properties without telling their clients. Potentially becomes an extortion issue if you hire an agent to list and sell.

That's quite a claim.  You know SEVERAL that have placed liens on properties?  How exactly did they manage that?  Did they have a clause in the contract or something?  I've not heard of this happening so I'd love to hear the details.

[Drew Sygit]

Quote from @Randy Charboneau:

Quote from @Drew Sygit:

@Jonathan Heacock if you go with a wholesaler, understand that they will only expose your property to whoever they have on their distribution list.

So, recommend only giving them max of 30 days to sell it. Them move on to an agent listing.

BE CAREFUL! 

We know of several wholesalers that will place liens on properties without telling their clients. Potentially becomes an extortion issue if you hire an agent to list and sell.

That's quite a claim.  You know SEVERAL that have placed liens on properties?  How exactly did they manage that?  Did they have a clause in the contract or something?  I've not heard of this happening so I'd love to hear the details.

 What specifically do you want to know?

[Randy Charboneau]

Quote from @Drew Sygit:

Quote from @Randy Charboneau:

Quote from @Drew Sygit:

@Jonathan Heacock if you go with a wholesaler, understand that they will only expose your property to whoever they have on their distribution list.

So, recommend only giving them max of 30 days to sell it. Them move on to an agent listing.

BE CAREFUL! 

We know of several wholesalers that will place liens on properties without telling their clients. Potentially becomes an extortion issue if you hire an agent to list and sell.

That's quite a claim.  You know SEVERAL that have placed liens on properties?  How exactly did they manage that?  Did they have a clause in the contract or something?  I've not heard of this happening so I'd love to hear the details.

 What specifically do you want to know?

Well I kinda asked it already.  How exactly did it all work?  Typically, Wholesalers get a property under contract and then remarket the property while it's under control to investors looking to make their spread and then assign the contract and get out of the way.   They really don't have the power or right to place any kind of lien on the property while they simply have it under contract and aren't doing any improvement to the property.  So, what exactly happened?   You mentioned you know SEVERAL who placed liens?  Like how many have done this?

[Matthew Kwan]

Traditional route could have more exposure to the market and could potentially sell for a higher price, however there's a premium service that needs to be paid to the agents. It could be 2-3% to the seller or 5-6% to both seller's agents and buyer's agents. Also, you would most likely have to rehab the house in order to be presentable and list it to the market.

If you pursue the wholesaling route, you could potentially wholesale the deal to a potentially investor, but they would typically negotiate and lower the selling price @Carlos Valencia @Albert Bui 

[Drew Sygit]

Quote from @Randy Charboneau:

Quote from @Drew Sygit:

Quote from @Randy Charboneau:

Quote from @Drew Sygit:

@Jonathan Heacock if you go with a wholesaler, understand that they will only expose your property to whoever they have on their distribution list.

So, recommend only giving them max of 30 days to sell it. Them move on to an agent listing.

BE CAREFUL! 

We know of several wholesalers that will place liens on properties without telling their clients. Potentially becomes an extortion issue if you hire an agent to list and sell.

That's quite a claim.  You know SEVERAL that have placed liens on properties?  How exactly did they manage that?  Did they have a clause in the contract or something?  I've not heard of this happening so I'd love to hear the details.

 What specifically do you want to know?

Well I kinda asked it already.  How exactly did it all work?  Typically, Wholesalers get a property under contract and then remarket the property while it's under control to investors looking to make their spread and then assign the contract and get out of the way.   They really don't have the power or right to place any kind of lien on the property while they simply have it under contract and aren't doing any improvement to the property.  So, what exactly happened?   You mentioned you know SEVERAL who placed liens?  Like how many have done this?

 They can:

1) Put language in their agreements allowing them to place liens
2) Some counties allow a purchase contract to be recorded as a lien
3) Most though, do it borderline illegally