All Forum Posts by: Arteshia Darby

Thank you for your feedback @Steve VaughanI totally agree with you.

Good evening BP,

I just want to say, sitting on BP all night is so much more rewarding than FB or IG. I love the knowledge base that's here. Anyhoot, I am finally coming to the end of attorney review on my first deal and I am up in the air with what I want to do with the property. Ultimately I want to go big and go for the fix and flip to save up some capital for buy and holds in the future, but since this would be my first fix and flip I don't want to be so far away from home, nor do I want to try to do it myself with my limited funds. The property is about an hour and a half away from home and I do work a 9-5. I've been strongly considering wholesaling it since I've negotiated a purchase price of nearly 40% of the ARV. This would seem like the quickest and easiest way to make a sizable profit without putting in so much work. I have also been entertained with the thought of doing a joint venture with a more seasoned investor who has the money if I bring the deal. I really want the experience of doing my first fix and flip and I feel like a joint venture would help me get the experience as well as a partnership to help along the way.

My question is, what are some things I should consider if I choose to go with the JV?

I understand your feelings @Alex Franks

Thanks for your feedback @Leland Barrowand @David Dachtera

Thank you all for your insight. You all make very valid points. @Percy N.as soon as these this deal is out of attorney review I will reach out to you. @Charlie Fitzgerald I like how you put things into perspective. Think small get small, think big get big! @John Thedfordmaybe you can invite me over to dinner to meet some of this family that wouldn't lend to strangers. I make a helluva sweet potato pie LOL. But I do understand what you're saying and you're right about family and close friends. I don't expect for someone to just hand over a name, however, a warm introduction (after prior approval of course) would be a great start. @Jeremiah H.that's what I'm starting to think the issue is and I understand the risk, but that's why the numbers have to be right. And even if I used a referral I'd still want to be mentored  throughout the entire process to ensure that things don't turn into a big disaster.

There's an old saying that goes something like "A candle loses nothing by lighting another candle".  Why is that so hard for people to grasp?  Being a real estate newbie I've talked to plenty of people that I personally know in the business and no one seems to want to give me a lead on a private lender.  They talk about how they use OPM, however, they suggest I look into mortgages or hard money.  It feels like they'd rather me get the short end of a deal by paying extra points, fees and interest to acquire a property instead of maybe introducing or referring me to a lender that has helped them achieve their real estate goals time and time again.  At the end of the day I'm going to keep looking until I find great private lender and maybe I may have to use hard money at first, but I just want to know why people are so tight on their lenders.  Are they afraid that their lender will run out of resources? Do they not want to continue to put money in their lenders pockets to increase their lending power? Inquiring minds wanna know...

Secrets of the Millionaire Mind

The Millionaire Real Estate Investor

E-Myth revisited audio

Hey @Max Lotus and @Michael Paul have you used any of the services they solicit like the funding and deal desk? The funding is what sold me since I have my first potential deal on the table right now, but I read your post and decided to cancel the very next day. How was the course about the stock options? That was of interest to me also.

Thank you all so much for the great responses!

Good evening Bigger Pockets Family,

My name is Tee and I am from the Bristol, PA area.  I have been reading books, listening to podcasts and watching webinars for the past 6 months.  I finally stumbled across my first deal in Rahwah, NJ and I am slightly nervous, yet confident that with the help of my BP family and the knowledge embedded deep into my soul from reading and listening to the podcasts, I can make this a successful first deal.  Ultimately I'd like to buy and hold to create passive income over the years, but in order to get to that point I need to build some capital.  My intentions are to wholesale until I have enough to fund a few of my own rehabs/flips.  While I build a reputation for rehabbing I intend on acquiring a few investors to expand my rehab projects even further.  Once I've saved enough capital to put down payments on properties I intend on purchasing buy and holds to reach my ultimate goal of financial freedom.

So having said all of that I have a few questions about this first wholesale deal that sort of fell in my lap after talking to a coworker about being a real estate investor.  They have agreed to my verbal asking price and now I'm in the process of drawing up a contract and figuring out my options to pass on the deal to a cash buyer.  If someone could please help me by answering the following questions it would be greatly appreciated.

1.  When doing wholesale deals in NJ, is it necessary to obtain a real estate attorney or will the title company handle the entire transaction?

2.  When drafting a purchase contract with the seller what are the key components of the contract and what contingencies should NEVER be left out?

3.  When drafting an assignment contract with the seller what are the key components of the contract and what contingencies should NEVER be left out?

4.  As a wholesaler, are there ever any closing costs or feeds due from the wholesaler?

5.  Is a double closing recommended if there is a large profit involved for the wholesaler and does the lawyer and/or title company have to be paid twice for the transactions?  If so who pays those fees?

6.  What are the pros and cons of transactional funding for double closings?

7. What is the general rule of thumb when presenting numbers for a wholesale deal? (i.e. What % of the ARV should be used when calculating the deal)

8. What kind of information about the property/deal should the wholesaler provider to the cash buyer?

Thank you all in advance for all of your help.  And most of all thank you all for being apart of the Bigger Pockets family!

Have a great evening,

Tee