All Forum Posts by: Brian L.

Well it impresses me @Bryan H.! I spent a good part of January doing the things that you accomplished in a day. It's a great feeling to be "up and running".

What 2 REIA meetings did you attend? What was your impression?

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Just keep calling I guess. If it's not under contract not much you can do if he has changed his mind or whatever. Put him on the followup list.

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Welcome @Renee R.

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Congrats @Bobby Beard

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Originally posted by @Duncan Taylor:

Maybe I am missing something in what you wrote above. So, let me walk through it slowly for my benefit, okay?

You tell the seller you are buying their house with the end intention of rehabbing it. Now, I was unclear as to whether you tell them you intend to rehab it, or just let them draw that conclusion. But, for the moment, let's put that to the side.

Then, based on the costs of rehab and a profit, every business is expected to turn a profit, you then tell them, "Your home is worth $X right now as it sits."

They agree to sell at $X to you.

Once you have the contract you then turn around and sell it, as is, at a higher price than what you told the seller it was worth, right now, as is.

Unless you really intended to do the rehab at the time you signed with the seller or unless you were honest about your intention of immediately selling their property for more than you told them it was worth, I'm not following you when you say my observation was wrong.

A wholesaler does not sell the property at a higher price, they charge a fee for the service they are providing. If a wholesaler signs a contract with a seller for $50k, they assign that contract to a buyer, the buyer is paying $50k for the house, as per the contract. The buyer also pays a fee to the wholesaler for the service of providing the contract. This does not change the price that the house is being sold for. The sale price or value of the home is not misrepresented to either party.

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Originally posted by @Duncan Taylor:

Think about it this way, on the one hand you are telling the seller their home is only worth what you are offering them. But, once you have it under contract you turn around and sell your position in that contract by convincing an investor it is worth much, much more. That is the nit people debate about this over and over again. The implied question is did you lie to the seller or the buyer?

Wrong. I tell the seller what their home is worth now, in "as is" condition, and I tell them what it could be worth if they fixed it up. I tell the truth based on my analysis of the property, comps, etc, and I tell them that the end intention is to rehab the home and sell it at a much higher price. Once the property is under contract I sell it based on what it could be worth after repairs (ARV). I am honest with the end buyer about the contract and my negotiated price.

I'm not sure where the con is. There is no deception or intent of deception.

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Welcome @Patrick Page beginner's guide is always a great read and a great way to get started.

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The number one reason these properties didn't sell is probably price so using the list price as ARV is probably not a good idea; run comps to determine your ARV.

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Well I guess it's time to celebrate!

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Congrats @George P.

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All Forum Posts by: Brian L.

Brian L. has started 4 posts and replied 292 times.

Post: New Member: Denver Metro

Post: Suggestions on how to move a deal forward

Post: Hello from Southeastern NH

Post: Just bought property #6. 2 in 8 days!

Post: Why can't wholesalers just..?

Post: Why can't wholesalers just..?

Post: New member from Concord NH

Post: Found Potential Motivated Sellers! Now what?

Post: Saturday Feb 22 is National Margarita Day!

Post: Rental #10 was purchased