All Forum Posts by: Brian Truman

Hi @Sherri D., 

Have you talked with any hard money lenders in your area? My business partner have done that here in Seattle. 

Brian Truman

Hi @Jeffrey Mark, 

I have had this situation arise... and its annoying, as a wholesaler. What I have found, too, is that you may be getting tested as well to see if you are legit, or just gaming them.

I would get the offer to them and see if you can meet the seller and "partner" in person to sign the deal. The fact of the matter is, if this guy is going to come between the seller and you, there is not much you will be able to do, unless the seller asks them to leave. If the deal actually does move to close, the seller would have to produce identification to the escrow closer or notary to verify they are the legal owner of the property (or they should). If they are not actually a part of the transaction, they will be asked to either step out of the way or to verify that they are needed there at the signing. 

I have also had to work with some folks that were elderly, and one of their kids had power of attorney, and not only did that person weigh in on the sale, but all the siblings had to have their say on the deal. That was just part of gauntlet I had to go through to get the deal. 

I would jump through the hoop, and see how far the deal goes. The truth usually makes its way out at some point in that process. 

I hope that was helpful. Cheers, and happy hunting!

Brian Truman

Hi @Stephon Shaw, 

That really depends on where you are doing your deals. There are many local laws that can affect how you structure your deals. A couple questions:

• Are you a licensed agent, or approaching people as an investor? Check your local laws to make sure you do not have to have some sort of license. 
• Are you using MLS forms, or a custom PSA from your attorney?
• Are you in contact with any folks in your local REIA or attended any BP meet ups? I have found many of the folks there are willing to share good info with anyone that is humble and willing to talk. Especially if you might be able to bring them a deal.

Most of the time, as long as you are using a good PSA, there should be plenty of contingencies in the contract that protect you and give you an "out" should you find something that you do not like about the property. 

As far as a buyers list... Starting to post your deals on BP (in the appropriate area), or just talking to folks in the forums, you will find that local investors will find you. You could also post them on Craigslist. And again, BP meet ups and your local REIA are great places to find cash buyers, so you could be knocking out two birds with one stone. Hope that helps you in your quest. Happy hunting, Cheers.

Brian Truman

Hi @Rachel Johnson, 

As an agent... I would caution against this. More than likely, based on the fact that the buyers have been approved, these folks are probably fine to rent to... 

But... I have seen more than a few occasions where sellers let the new buyers get keys early, or just let them move their stuff into the garage before closing, and then the whole deal blows apart... You now have a major mess to clean up. I have seen buyers claiming to have occupied the property and get rights due to the amount of time in the property, or they have taken possession and it comes to light that they have somehow masked fraud, and now must be evicted. This ends up losing you money, not to mention if they trash the place and drag the process out in the courts. Please use extreme caution. 

Cheers!

Brian Truman

Hi @Rob Z., 

What is the rental market like where the house is located? Is there the possibility that it could be used as a BRRR? Or in your case.... IRRR? You could be making rental income as well as save on costs if you are trying to accumulate more properties to add to your portfolio vs. using hard money...

Brian

Hi @Joel Harris, 

Why not write them an offer and put in it that you'd like to use seller financing? I really like BP podcast with Tom Krol, he said if you are not embarrassed by the price you are offering... its not low enough. Just go for it! The worst they could say is "no". 

Cheers and happy hunting!

Brian 

Hi @Lee Brewer, 

Disclosure here.... I am a wholesaler. But, I will tell you what to look for in a wholesaler. 

• Do they use direct mail, or use some program to generate leads? Without leads, they are dead in the water...and won't be able to bring many deals to you. 
• See what their comps look like... if they are getting ARV's using houses that are outside a neighborhoods "borders", or are more than one mile away.... they are picking and choosing their comps, and propping up the values...
• See if they will give you references from investors they have worked with. 

That would be a good place to start... Unfortunately I do not know anyone in your area. But you are in the right place to find someone. Happy hunting, and I hope those are helpful tips for you...Cheers!

Brian Truman

@Billy Baumann, sorry about that. You would have to give the assignment fee back to the person you were going to assign the deal to. I have the buyer also deposit earnest money. If the seller backs out of the deal... then the buyer you assigned the deal to, or you, if you deposited the EM, would/should get it back. 

I had to give a $27,000 assignment fee back to the guy that was going to buy the house I had under contract because the seller backed out of the deal. That was a really bad day...

If that is something you would like to get drawn up, make sure you are working with a reputable real estate attorney, and have them draft one up for you.

@Billy Baumann, for sure. The assignment agreement will usually have language in it for you, the person assigning the deal, being held harmless for any defects in the property. Also, if the seller ends up backing out of a deal (which actually happened to me...), you will either have to give the money back, or get to keep it depending on how the assignment agreement was written up. I have seen some deals where the seller has backed out of the deal, and the person assigning gets to keep all or a portion of the assignment fee. This is not usually good business if you want to work with that buyer again someday....