All Forum Posts by: Brian Compton

Looking forward to it @Account Closed hope to see you guys there!

Noob wholesaler question...

Came across this property description in the FSBO on Zillow:

**JUDICIAL SALE OFFERED BY MECKLENBURG COUNTY CLERK OF COURT, SUBJECT TO 10 DAY UPSET BID & CONFIRMATION BY CLERK OF COURT
**CONTACT COMMISSIONER: (removed name / email) CONTACT TO SET UP SHOWING/MAKE OFFER
**PROPERTY SOLD ?AS IS?
**CONTRACT ON PROPERTY MUST BE ACCOMPANIED BY 5% EARNEST MONEY DEPOSIT
** OFFERS MUST BE FULL APPRAISED PRICE ($192,500) AND MUST INCLUDE PROOF OF FUNDS OR PRE-APPROVAL LETTER

There's a lot going on here.

Is something like this off limits for a wholesaler since he / she most likely doesn't have the 5% EMD to get it under contract? Or I guess it doesn't matter as long as you have a clause to opt out of the contract if you don't find an investor in time that would really be the one paying the deposit?

And how does the 10 day upset bid thing work? If someone gets it under contract for $192,500 but then during that 10 day period, if another offer came in at $193k the new offer would take effect and the first person would have to either walk away or make a new, higher offer? Is this like bidding on ebay where someone waits until the first person gets something under contract and they wait until day 9 and make a slightly higher offer? Does this then reset to a new 10 day upset bid period?

Thanks for any insights, BP :)

Hi @James Maglio, definitely not a pro here but I think you have it backwards on the lease option. If the property is owned free and clear, you would be better suited with a cash offer. If the seller is motivated enough, they would accept a deeply discounted cash offer for the property because that's an immediate exit for them to cash out from the property.

Lease options are designed for properties that are carrying a mortgage when a cash offer doesn't work. If the seller owes $45k on the loan and the property is only worth $50k, a cash offer wouldn't make sense because they wouldn't accept anything lower than $45k and you wouldn't do a cash offer for almost the full value of the property. This is where you lease option. Say their monthly payments are $500. You could do a lease option and put a tenant buyer in there for $800 / mo. Now you are cash flowing $300 / mo on the property, while paying down the loan, for the entire term of the lease option (36-60 months). Please keep in mind I'm just making up numbers for the sake of the example.

That's at a very high level the idea of how it would work. And you would want to negotiate a lower purchase price with the seller and a higher purchase price for the tenant buyer so you get paid the difference at the end of the lease, assuming the tenant buyer purchases at the end of their lease.

Surely someone on here more versed in LOs would be able to give more details to the specifics. But that's how I understand it (never having actually done one). Hope this helps regardless!

Hey @Chris Hill, the next meeting at The Brass Tap that Dave was referring to is next Monday at 7pm. It's usually the last Monday of the month. I don't think there's a meetup.com group for it. Dave just posts about it on here so it's mostly BP members that show up, have a couple drinks and network.

Hope to see you there next week!

Welcome, @Jason Lawson! Which REIA are you going to tomorrow night? You can find tons of them on meetup.com. Pretty much any night of the week at some location in and around Charlotte there is a group getting together.

Looking forward to connecting and hopefully working together in some capacity in the future!

That's awesome @Mary Kate Bula. You've definitely come to the right place. And found a great person to learn from in @Curtis Waters. Best of luck to you in your move to CLT.

Also Harry Marsh. And I think I've heard Jeff Smith is a good one, though I've not talked to him.

Afternoon, BP

I'm looking for some investors in Concord, primarily downtown Concord. Seems most of the Charlotte folks I've met with don't venture that far North (25 minutes from Uptown).

Can anyone hook me up with any referrals? Have a few opportunities I'd like to discuss.

Thanks in advance :)

Isn't it 4 mortgages per entity? Could you create a new entity so you could have 4 more?

@Alex Franks I'm sure you know the answer to this question!

@Alex Franks I forgot you mentioned a podcast you were doing when we met last Monday. Where / how can I find that? Looking forward to giving it a listen. I hope you talk about your garden and bug spray on it at some point.