All Forum Posts by: Henry M.

@Renee Ren It seems as though you didn't read my responses.

The numbers are tight... If there is a deal there, I will probe. If the numbers work, I don't care if they make $100K.

He said an assignment... Not double closing... So either he is getting paid by the Seller or not. If he is assigning me the contract, then I will see the amount. But I'm not at that stage yet. His numbers are tight due to having to replace the roof and foundation work needed. So in order for me to see if there is a possible deal there, I will need to negotiate that to a more manageable amount.

Again... I don't care what ANY wholesaler makes IF the NUMBERS work.

IF the NUMBERS are tight or DON'T WORK, then instead of walking away, I will probe to see if I can negotiate a better deal... Not for greed, but to create the cushion to deal with what the property is needing to bring up to par.

If a wholesaler says ASSIGNMENT, then I the buyer should know the numbers across the board. I have to see the contract (if I chose to move forward).

Just to clarify.

"Big" Henry

@Curt Davis I read what you're saying and I don't completely disagree with you... However, the numbers are tight and considering he was trying to get rich on the deal (dropped $13K after 40 days)... I thought I'd ask so we can try to structure a win win deal. Especially, if it meant renegotiating with the seller (if the equity was present).

Thanks for the input.

@Wayne Brooks Exactly my thoughts... Damn, I was starting to question that I didn't know everything. Lol!

@Ned Carey

You hit it out of the park. This was my thoughts. I don't have a problem with a wholesaler making money as long as it doesn't breach a good deal to a so-so deal.

If a wholesaler bought or contracted a perfect house worth $200K for a $1 and they sold it to me for a $100K... I would not have a problem with that... (of course extreme example).

The deal is so-so. An ARV of about $185K and selling it for $100K. But has a few majors needing addressing. So numbers may be tight.

Either way, I found that odd. It was actually a put off and the fact that it has been on the market for a bit with a price reduction of $13K shows me several indicators about this wholesaler.

Nevertheless, the deal may be doable at about $90K... So, I may walk away if he doesn't budge. Considering he won't be transparent, then there is no way to know whether a negotiation can be successfully accomplished. Some Wholesalers are know it alls and if it doesn't conform to their methods, the deal will eventually drop in price later or die.

Thanks for the input.

@Thomas Marks I think you answered your own question. If this is a turn key, why not have a qualified tenant in place?

What does the market say in that specific area? Have you spoken to any property managers in that area?

What is the going rent for that type of home in that area?

What is the occupancy from surrounding properties in the area?

Can this qualify for an AirBnB?

What happens if they do not find a suitable tenant in 60 days?

I believe previous poster had a good point by negotiating the price considering it is not CF out the gate.

Just some thoughts.

"Big" Henry

So I just got off the phone with a Wholesaler (of 14 years, according to him), and asked about a property of interest. This property has been reduced $13K (interesting)...

Here's the conversation:

Me: Is this an assignment fee or double close?

WHS: Assignment Fee

Me: So what's your assignment fee?

WHS: That's not any of your concern.

Me: Uhmm, okay.

Me: So, how will you be paid an assignment fee?

WHS: It's included in the price.

Me: So the seller is paying you the fee?

WHS: That is not of importance to you.

Me: Is the buyer paying you an assignment fee?

WHS: Yes. It is included in the price.

Me: Have you ever closed an assignment deal?

WHS: Over 600 of them. The Assignment Fee will be on the HUD1.

Me: Hmm.

Now... I'm pretty up to date on real estate strategies.

So am I missing something or should I just Laugh Out Loud?

Needless to say, the conversation seemed to rub me the wrong way.

Just checking if there is a new strategy I am unaware of out there where the buyer doesn't know what the assignment fee is.

"Big" Henry

@Cory B.

In my opinion, I believe selling the property is the right move. I would normally and typically suggest a HELOC... However, it is not your primary residence today, not to mention when reading your post twice, your concerns (or gut feeling) seem legit. You know the area better than anyone.

I think it has appreciated all it has for a 2 bedroom and considering the fact that rent doesn't seem to match appreciation, I would sell.

With no tax on capital gain, it could be a good move for you. You still can leverage that money to benefit you in acquiring future property.

Btw, I am a licensed and investor friendly agent. So, anything in Texas, specifically the heart of to south Texas I would be more than happy to assist in any way possible.

I am also and have been a real estate investor since 1996 and have been around the block or two. I am located in San Antonio, but do have access to other cities if necessary.

DM me anytime.

Your Real Estate Ally,

"Big" Henry

@Trent Stone

I tried it twice, but many of the listings are either older or on areas I have found the same homes.

Tbh, It was a pass both times, with the second try that only took me one day to realize it was a no go.

I wanted to like it... But I am no longer using it and will not be using it a third time.

"Big" Henry

May be late to the party but, New Mexico has the best anonymous L.L.C. practice/requirements. 

Best Anonymous L.L.C. State - NEW MEXICO

Just my two pesos,

"Big" Henry 

I am currently pursuing this myself... I am able to, however I am not willing to give up anonymity. 

So still negotiating or researching outside the box.

Will post results.

"Big" Henry