All Forum Posts by: Jackie Lange

I'm not a licensed agent but I also think there are many problems with the way Michael Kimble and Phil Grove are doing these deals!

Because they are not staying in the middle of the deal, the seller and the buyer are not protected in the case of a default.

The way they do these deals there is a high probability of a lawsuit later. And because you are doing many deals, it could turn in to a class action lawsuit.

I would not touch their system with a ten foot pole.

Also, in Texas, as in many states, there are special rules for buying of selling subject to. You have to give the buyer a 7 day option to get out of the deal. You have to either notify the lender that the property is being sold subject to or you have to buy title insurance for the buyer.
IN some cases, they will be treated like an executory contract and there are special rules for those too -- with a $250 PER DAY fine if you violate the rules. The list goes on and on...

Just because someone has done a few deals a certain way, then created a course and a hyped up sales pitch to match, does not make it a good way to do business.

A big mistake that people make it to hear a sales pitch, buy a course, then think they know all they need to know to do those kind of deals. The reality is there are different rules for each state and you need to follow them or run the risk of suffering the consequences.

There are MUCH BETTER and SAFER ways to do these kinds of deals.

Jackie Lange

I'll be in central & south America for a few weeks but then I'm available after July 7th.

15 years of experience. Many Hundreds of wholesale deals, rehabs, subject to deals, options, luxury homes, mobile homes, and buying with seller financing.

Financially FREE with enough cash flow rentals and notes to take care of me for the rest of my life.

I also own two online business which run on autopilot. One I started 11 years ago and the other launched 4 years ago.

Jackie Lange

What kind of tenant would want to live near a warzone? You're only choice will be section 8 tenants. If it were me I'd pass - actually, I'd run in the other directly as fast as possible.

Even tough that house and the neighbors are in fairly good shape, there's a good chance that street will go down hill too.

Many of the old time investors got started in the cheap houses near warzones. Those kind of houses put some of them out of business. They all lost money.

You'll do much better if you focus on acquiring houses or mobile homes in nicer areas away from war zones.

Matt,

The answer is -- it depends.

If you plan to assign your contract, then all you need is a purchase contract with the seller then an assignment contract to the buyer.

But, if you plan to do a simultaneous close then you need a purchase contract with the seller and a purchase contract with the buyer.

The advantage of the simultaneous close is that the seller will not know that you immediately resold the property and the buyer will not know how much profit you made.

But, if you're honest with the seller and tell them what you plan to do up front then the assignment of contract is fine... UNLESS

If you're just making a $5,000 or less then I've found that sellers and buyer rarely object to your profit

But if you're making more than that you can be sure the seller could get upset with your profit and they could back out at the last minute and not close.

If you assign a contract and you're profit is a large amount, the buyer could get greedy and try to go around you.

If you assign the contract, the amount of profit you make will be a line item on the HUD-1 and the seller will know how much you made. You will get paid after closing.

Ideally, you have several buyers already lined up before you even get the deal so you can sell it immediately and there's no need to put it on MLS or pay a commission.