All Forum Posts by: Bryan Chuchta

where is the property?

https://www.youtube.com/watch?v=O6rHeD5x2tI

Sounds like the same question.

Is that New Republic Bank?

Does anyone have any recommendations for lending institutions (& people) that are investor friendly?

Not talking hard money but long term lenders.

@Erik W., I actually was shocked you wrote this, imagine my naivete.  

"I don't mind when wholesalers bring me deals, but I usually want the ones that are about 2-3 days away from failing to close with their Sellers then drive them down to the thinnest margin I can and still get the deal. I save their name in the process and they get about what I'd pay a bird dog to bring me a deal anyway.

One major ethical problem..."  Seems like this last bit should be to describe the paragraph above it.

The problem is your ethics.  One major ETHICAL problem is how you are dealing with wholesalers.  I am surprised any bother to bring you a deal.

I cant believe you cited the golden rule before telling how you take advantage of people.  Are you really deluding yourself that much?  If I understand you right, someone should warn your grandmother away from you.

So first of all, the wholesaler "earns" his fee by finding the deal.  This is often done by driving for dollars, bandit signs, sending out mailers, posting online ads, driving traffic to a website, etc (needless to say, these things have a cost, whether it is time or money or whatever.  Then the wholesaler has to negotiate a deal that the seller agrees with.  I have never wholesaled a home that the seller didn't thank me, often with immense appreciation.  

The fee that is assigned has nothing to do with the buyer, yes they will have to separate that part of their purchase price, but it is included in their purchase price.  Buyers who cut a wholesaler fee because they "think they are making to much" or they "don't pay more than a 10%" are ridiculous.  Why should it matter.  

I had a friend who inherited a pickup truck with an 18k value.  He ended up selling to another friend, giving him a great deal at 12k.  When the purchaser found out the seller had gotten the truck basically free, he went from over the top happy to mad his friend "made so much" on him.  Why cant we look at the deal for what it is and not worry about who else is making how much.  The deal either makes sense or it doesn't.

If I contracted a house for $25k that the ARV was $100k, I might have a $10-$20k fee on it. If your an investor and could buy at 50% ARV (assuming no major repairs) why would you pass that up? Or worse yet, try to cut the wholesalers fee after he brought you such a great deal.

I have had buyers offer less then my fee when I revealed it and then get mad when I placed the house with another buyer who was glad for the deal.

I have had buyers agree to the numbers, then just before closing say they needed to cut the fee because the numbers were too tight for them, yet afterward made almost a 6 figure profit themselves.

I have had buyers tell me they wont pay more than X amount or % in a fee before they even see the deal.

Bottom line, in today's market, there are more buyers then properties.  Find the ones who understand the business and want everyone to be profitable, if they need to steal your profit rather then make their own, they are just not worth going back to.

@David Miller So not something you mess with I take it?  Do you know anyone locally that does?