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Updated almost 5 years ago, 02/11/2020
We buy ugly houses guy from Florida
I started buying rentals post college as passive income. I started looking into the Homevestors franchise and now own two 8 months into the business (Tampa & Pensacola). I've started off focusing on wholesaling to build funds quicker with lower risk. I'm just looking to meet like minded individuals that want to swing for the fences!
Hi Clarke
I live in NJ but travel to South Florida a lot because of family and friends. I am currently getting my wholesale business to the next level for the same reasons.
I would like to great opportunities for my investors and earn capital for my own real estate investments.
@Clark Lunt
I live in Jacksonville Florida, also looking to mastermind with like-minded individuals and take my REI business to the next level. Would be very interested if I could be any help give me shout
Hey @Clark Lunt. Congrats on the success with the franchise. Please add me to your cash buyers list for any wholesale deals you have under contract in the Tampa area.
@ Clark,
Welcome! As everyone has forestated...wholesaling is a great way to begin. I wish you all the best; and would love to connect. You like ugly houses, you say? I've got plenty of those! Give me a shout if I can possibly assist you in any way; although it sounds like you are definitely doing ok. All the best...
Let me ask all of you a question . . . I am trying to find a FIRST deal to put under contract and ASSIGN to a cash buyer in FLORIDA.
Is it unethical to contract a wholesale deal and then assign it to another buyer/assignee? I ask because one of my cash buyers said he would NOT purchase a contracted property that was in the middle of a wholesale deal, only fully owned by the original seller.
Monique, it is illegal to wholesale in Florida. There is a lot of good information on this site about it. You will find real estate professionals here avoid wholesale deals because people don't just get fined they get imprisoned in Florida.
Flipping is great. Adding value before reselling is cool. But reselling quickly at a higher price without any renovations is a red flag here. I was duped into believing we can wholesale our way into eventual flipping. Now I'm trying to gather enough cash for buy-hold-rent.
Originally posted by @Account Closed:
Is it unethical to contract a wholesale deal and then assign it to another buyer/assignee? I ask because one of my cash buyers said he would NOT purchase a contracted property that was in the middle of a wholesale deal, only fully owned by the original seller.
Absolutely not. Is a grocery store or bookstore unethical when they sell you something? They bought from a wholesaler. Virtually everything you buy new, the person that sold it to you bought it at a cheaper price.
As long as you bargained in good faith, and did not mislead the original seller, and they get what they agree to, the is nothing unethical. Can wholesaling be done in an unethical way? Sure.
By the way you Cash buyer Is either foolish, or a faker and actually looking for wholesale deal himself.
PS Welcome to BP @Clark Lunt
#5 Wholesaling Contributor
- Real Estate Broker
- Naples, FL
@Ned Careyor.....he doesn't trust or want to work with people that don't own the property. I, along with many others, will not deal with anyone other than the owner of the property. Not long ago I was approached by a member of our REIA. He had a house he wanted to assign. Not long after his call, I got a call from an out of state guy wanting to sell me the same house for around 18K more. I would not "buy" it from the first guy, and not from the second guy. Principals only...or listed on the MLS. Others may choose to operate differently.
@John Thedford in your example what does trust have to do with it? If it was a good deal for you even at the $18K higher price, why not buy it? My guess is it wasn't a good deal at those numbers, so not an issue anyway.
The only thing that maters to a good investor is how good a deal it is. What difference does it make to you how much the wholesaler makes?
I will amend my comment above. Foolish was a poor choice of words. It is also certainly a legitimate decision to not work with wholesalers because of potential hassles. (Although these are easily avoided just by a few questions and a modicum of screening)
However deciding not to work with wholesalers based on how much they make is poor business choice.
The tag didn't work in my last post so again I say @Clark Lunt welcome to BP
#5 Wholesaling Contributor
- Real Estate Broker
- Naples, FL
@Ned CareyI haven't found one "deal" yet by a "wholesaler". Perfect example is some guy that kept texting me with all kind of wild claims of profits when the properties were MLS listed at 30% less. I have purchased properties that had been tied up by some of these "wholesalers" where they had victimized the homeowner. Many of these guys are brokering without a license. As far as profits I don't care what they make. I am sure you saw the recent thread from the lady in Miami that was victimized by one of these operators. That is a perfect example as well.
@John Thedford well it is certainly true that most "Wholesalers" are really newbies that don't know what makes a good deal or shysters looking to take advantage of newbies. There are good wholesalers out there. But I will grant you they are in the minority.
I blame the gurus who promise quick easy riches.
Obviously the case in at least on of the wholesalers in your example.
There are a lot of threads here I don't see them all. I would love a link or some reference that would help me find it.
DISCLAIMER/WARNING: I am not an attorney, so research contract law in your own state for yourself.
In Florida, there is nothing illegal about assigning a contract. As a wholesaler, that is exactly what you are doing: assigning a contract. YOU ARE NOT BUYING OR FLIPPING THE PROPERTY. You are simply adding an escape clause next to your printed name as the buyer on the contract that reads: "and/or assigns."
You never actually buy the property. That specific escape clause allows you to legally assign any RE sales contract to any buyer: your rehab investor, your rich aunt, or your partner/business associate. Anywhere in the US.
Buying a real property and reselling it is a real estate transaction, which is regulated by the real estate laws of your particular state. The other is a contract assign transaction, which is totally different and is governed by contract law.
As a wholesaler, you would be wise to include another escape clause: "Purchase subject to [ qualifier ], the qualifier being either "Buyer obtaining financing" or "Buyer Inspections." Either will allow you to void the purchase contract and remove yourself from the deal should you not be able to find a buyer within the time limits imposed by the contract.
