All Forum Posts by: Adam Davis

I just sent you a request/message as well, J.D.

I posted this in "Starting Out," but got no response. Maybe it'll be better here:

I'm a broker in Oregon and Washington, and I'm trying to wrap my head around wholesaling. Please point me in the right direction of a post that answers this, or chime in. These are the steps, as I understand them:

1. Identify a property that can be acquired at a discount for whatever reason (benchmark 60% ARV)

2. Negotiate "transferrable purchase agreement" with homeowner, price at that 60%+/- ARV number; contract for long escrow (90 days to 6 months, as possible)

3. Identify actual buyer who is willing/able to pay at least negotiated price, plus finder/transfer fee ($5-10k, for example); create a contract with end-buyer that identifies finder/transfer fee, agreement to complete purchase, and assigns difference (if any) of contract price and end-buyer price to self

4. Open escrow with homeowner, end-buyer, and self; self transfers contract to purchase to end-buyer in Title/Escrow, and provides T/E with end-buyer's contract with self: agreement to purchase, and fee instructions for self ($10k + difference if any) to be paid out of closing escrow

5. T/E informs self of release from obligation to buy; wait for closing/recording and get paid.

Am I missing anything?

Cheers!

Adam

Hi all! I work with this company on a regular basis (they're the only contractor I end up working with after comparing/price shopping others), and I want to send them more business. Better still, the project manager is also named Adam! They do all of the work for my portfolio clients, work with efficiency and affordability, and have a lot of capacity for jobs. They are excellent with investment properties, and owned/operated by investors.

 www.freestonebuilders.com

Put it in a managed portfolio and get a SBLoC without liquidating. I have a financial planner in Oregon/US VI who can write these loans for up to 2% under prime (last we spoke about it, like 2 years ago), and the portfolio cashflows something like 10% per year.

I have a cash-flowing property with roughly 50% equity, and a 100k HELOC in 2nd position. Can I get a new loan that encompasses the remaining balance, equity, and the HELOC, and gives me the remainder in liquid cash?

Use case: home is worth $580k-630k, with $295k balance on loan, and $100k owed on HELOC ($395k total debt). I would like to finance $600k-$700k total, to pay off all of the above, plus finance a BRRRR/HH purchase for less than $300k. Is this possible?

Hi Edmar, 

I can help, if you haven't gotten this done yet. Please email me at [email protected] and we can put a quote together for you.

I'm a broker in Oregon and Washington, and I'm trying to wrap my head around wholesaling. Please point me in the right direction of a post that answers this, or chime in. These are the steps, as I understand them:

1. Identify a property that can be acquired at a discount for whatever reason (benchmark 60% ARV)

2. Negotiate "transferrable purchase agreement" with homeowner, price at that 60%+/- ARV number; contract for long escrow (90 days to 6 months, as possible)

3. Identify actual buyer who is willing/able to pay at least negotiated price, plus finder/transfer fee ($5-10k, for example); create a contract with end-buyer that identifies finder/transfer fee, agreement to complete purchase, and assigns difference (if any) of contract price and end-buyer price to self

4. Open escrow with homeowner, end-buyer, and self; self transfers contract to purchase to end-buyer in Title/Escrow, and provides T/E with end-buyer's contract with self: agreement to purchase, and fee instructions for self ($10k + difference if any) to be paid out of closing escrow

5. T/E informs self of release from obligation to buy; wait for closing/recording and get paid.

Am I missing anything?

Cheers!

Adam

I have these two listings that have strong upside, and I would love to buy them myself, but I don't have the capital. I also have a list of other great properties that I'd do the same with. The problem is that I can't get a loan - I'm too good at taxes, and don't have enough income to qualify for conventional products, and don't have enough portfolio, cash/flow, or experience to get hard money. Any suggestions? 

Ideally I can work with an investor who shares the vision and has more leverage, but I don't know this person. I have a very investor-friendly contractor (who offers pay-at-close in addition to conventional), and good clients who would be open to unconventional sales. If, for example, I could get hard money to purchase/repair and pay off in a year, I'm confident I could do so without loss, but only if the payments could accrue in the background, collecting interest, without being paid until the house sells. Is this possible?

I have a part 2, which I'll post separately, involving wholesaling.

Cheers!

Adam