All Forum Posts by: Boomer Creed

Hi all,

#1) 2bed/1bath - 900 sqft built in 1948
- carport for 2 cars
- front porch (needs to be rebuilt)

Comps :
A) $25,000 - need repairs
B) $25,000 - need repairs
C) $39,600 - need repairs
D) $38,000 - need repairs
E) $37,000 - need repairs
F) $125,000 - Renovated

The renovated ($125k) I am using for the ARV value and figuring the current 'As-Is' Value at $29,500.

I have only seen the exterior as the owner was not able to get into the property (evicted tenant took keys).  I am figuring that everything will need to be replaced/gutted (flooring, drywall, cabinets/countertops, roof, windows, siding, possibly some electrical upgrades.

I offered the seller $13k to consider but I am thinking of dropping to $10k since interior condition and systems unknown.

Seller owns property free & clear.  Seller is elderly and disabled who can't fix anything, owes $4k in back taxes, and just wants the property gone.

I planned on putting back on the market at $27k.

#2) 3bed/2bath - 2,038 sqft built in 2006
- attached 2-car garage 
 - pool
- finished bonus room over garage
- screened-in back porch
- fenced backyard
- landscaped nicely

Comps: (only two sold and 2 on the market for over 200 days)
A) $182,875 - still active
B) $144,900 - still active
C) $154,600 - Sold
D) $175,000 - Sold (next door)

Home is well kept.  Floors need refinishing, carpet needs replacing, fresh coat of paint, couple spots in roof leak on the exterior (possibly flashing needs replacing in 2 spots).

Sellers is in pre-foreclosure and just wants out without going into BK.  Owes just over $108k.

I offered to pay off the loan balance.

I planned on putting this back on the market around $140k since Days on Market in the area is high.

Thoughts/Questions/Suggestions?

@Stanley Miller I spoke with a number of Closing Attorneys in my area and they all had differing views.  I settled on an attorney who had worked with other agents who had done wholesaleing for years.

He asked me to write a few documents of what I wanted to say and disclose and he would add verbiage as needed as long as I used him for my closings.

I end up sitting with clients and having them sign a lot of paperwork because I am an agent.  It adds time to our meetings but it tends to make them more comfortable with me since I am an agent (but NOT acting as such in this transaction).

You may also want to see if they have a real estate agent status in your state as a 'referral-only' agent. Essentially you get MLS access and a lot of the benefits of having agent status with none of the headaches of actual paper pushing and deal closing. You simply refer potential clients to other agents. The other agents may be able to help you look for deals that don't work in their "retail" market.

Best of Luck!

Hi @Stephen Dickey and welcome to BP!  I am a Realtor here in Charlotte and also invest myself.  I work with other investors on both the fix/flip and buy and hold side.

Shoot me a message sometime.  I would love to help a budding investor.

@Bill Gulley The owner has been in title for 13 years.  I will contact the local affiliate and find out more info.

Thanks again for the info/help.  I'll post again once I find out more.

@Bill Gulley Thanks for the quick response.  I took a look at the deed and there does not seem to be a waiting period mentioned.  As far as restrictions with the deed, it states some general maintenance requirements (landscaping, removal of trees, nuisances, maintenance of the property, etc.) and only mentions that transfer restrictions comply with fair housing (not discriminate race, sex, etc.).

I say foreclosure because the current owner was served an NOS that will proceed in Jan of next year.  

Again, am I missing something? Or anything else to be on the look out for?

Hi All,

I recently spoke with a potential seller who is in pre-foreclosure.  The home was a Habitat for Humanity home and is 10+ years old.  She is the owner of record.

When asked if she was aware of any back taxes, she mentioned not being anymore than a year because if she doesn't pay them, Habitat does.

Any body ever deal with a Habitat home?  Anything I should be aware of/stay away from?

Thanks in advance!

Count me in!  Look forward to seeing everyone again and meeting new people as well!

Thanks @James Wise and I agree and I agree with you.  My main questions are:

1) how to draw up a disclosure form for the seller to sign? (do it myself vs attorney)
2) contact my state RE Commission to let them know what I am doing and approve or put in their 2 cents on my forms?

There has to be some Realtor in BP world who has either done this or has input.

I posted this topic in the Wholesale forum last night but didn't seem to get a lot of response.  So I am re-posting this topic here since you guys are my target audience.

I am wondering if there are any fellow Realtors out there in BP land who are also wholesalers?

I am aware that disclosure would be the biggest thing when approaching a potential seller acknowledging my Realtor status; however, that I am acting as a principal in this transaction and representing myself, NOT acting as a Realtor.

My questions are, did you approach your state RE Commission to keep everything "above board" in their eyes?

What disclosures do you use? More specifically, did you write one yourself, have an attorney draw one up, have the RE Commission approve/provide input?

Also, what is your experience with sellers when you let them know you are a Realtor? Does it seem to put them at ease?

I want to go full bore into wholesaling, but want to make sure I am not jeopardize my Realtor license.

Thanks for all the help!

Whoops...don't know what happened on my last post.  But @Cierra Seay I think you nailed it.  I see no issues with acting on my own regardless of my Broker in Charge's stance on what I am doing as I am acting on my own. 

I equate it to, I have an LLC set up for my Real Estate/Realtor transactions for ta purposes. I may also set up a separate LLC for my investments/investing again for tax purposes. There is a clear delineation between 2 companies and the actions I am taking in the wholesale vs Realtor transaction.

So, back to the original topic, has anyone any thought or experiences with disclosures/disclosure statements for this scenario? 

Has anyone approached their state's RE Commission to "clear it with them?"