All Forum Posts by: Anson Young

You are very welcome!

50-100?  I'd definitely get 1-2 BPO agents on board to get me local, and accurate valuation.  Maybe a traditional agent you could compensate per hour?  Either way, you will want to get that locked in and consistent ASAP

No need for a realtor, especially if your RE attorney is involved.

Luis, its a daunting subject for sure, with a steep learning curve.  I'd start right here on BP, go through the wholesaling forums.  Listen to podcasts and start reading books, this will get you 90% of the way there.  Then, you have to take action when you are ready.

Cold...  it comes with a few issues, some can be mitigated though some diligence, and some just might be too much to handle for some.  

Freezing: obvious one for sure.  Can be dealt with by having a smart thermostat monitor inside temps and notify you if something is wrong.  When a furnace goes out, and the entire plumbing is at risk of freezing and bursting, you want to know ASAP.  Believe me, its not fun to deal with.  You can also put water sensors in the property, by the hot water heater, etc. to notify you as well.

Furnace/boiler/electric baseboard heat: In warm climates, obviously this is not something you need to deal with.  My friend moved to FL from CO, and I didnt even know they built houses without furnaces...  would be nice at times to not have to deal with the $1500-3000 piece of equipment that always goes out at the worst possible times it seems.  Boiler systems can get really expensive to replace, and electric baseboard is expensive on the electricity bill.

Deferred maintenance: Freezing/thawing is hard on driveways, foundations and concrete in general.  

Snow removal: In most cities, you are liable if someone slips and falls on your sidewalk if you did not remove the snow or ice on it after a certain amount of reasonable time (24 hours for us...).  Are your tenants going to shovel the walk every time it snows?  Do you have to write it into the lease?  What if they dont and someone falls and sues you, the owner?  Do you pay for professional snow removal to make sure its done?  Lots of variables here.

Hope this helps!

Marc, sounds like it could be a win/win for you both.  Dealing with family could be really good, or really bad, its a risk of mixing family with business for sure.

You have a few options that I see.  

1. you all sign an agreement that says you are buying the house subject to the existing mortgage staying in place, and agree on a price, that way you DONT have to get a loan for the full purchase price, you just come out of pocket for the rehab and holding costs. The thing is, you would have to have this money ($20,000-50,000?) in cash/credit/HELOC whatever. You could either close, transfer title and have the existing mortgage in place, or have the agreement spell out how much each party is owed at closing. You flip it, go to closing, the in laws get their purchase price money, and you get the difference as profit. This might create some odd tax scenarios, so consult a CPA for more info.

2. You purchase the house from them with a hard money lender, who will lend you the purchase price and hopefully the rehab money as well.  You might need that same amount as above liquid for a down payment on the loan.

Hope that helps so far!! 

Not many, or most use it as a stepping stone into longer term real estate strategies, like flipping, landlording or development.  You should absolutely start, learn to find good deals, and it will benefit you no matter where you branch off to in real estate.

Yep, sounds like you understand it just fine!  

As for #3, I know OH has the most restrictive wholesale criteria in the country (and honestly, I'm not an expert in OH deals), but the double closing is not acting like an agent in the transaction.  You should look into "equitable interest" in OH, its a way to "market" the property, since you have it under contract and have equitable interest in it.  I think the OH laws killed assignments, but double closings (barring deed restrictions) are always a good alternative to assignment for wholesalers.

Derrick, sometimes the price has *some* wiggle room, but if its a highly competitive area, wholesalers who are good and price right rarely have to drop the price.  

You dont need an agent, but many wholesalers will work with buyers who use an agent, they just ask that you roll the agent fees into the purchase price.  

Without agent: $100,000
With agent: $100,000 + 3%

Whether YOU should use one depends on your comfort level of doing a purchase with or without representation from a professional... thats up to you.

Joan, talk to every lender you can NOW, before you get a deal to get some ducks in a row.  You cant, in good faith, talk to a seller and get a deal under contract if you have no means on following through on the contract (like... financing).  That way, when you DO get a deal and might need to act fast, you have your lender(s) ready to go and jump on the deal!