All Forum Posts by: Account Closed

@Shawn Mcenteer

Thanks a lot!

A friend of mine is an agent so I'll have her do it.

So I've recently been browsing homepath looking for deals.

It came time to register an account with homepath, but one of the required fields is a "Real Estate License Number".

I don't have a real estate license.


Can you get a real estate license if you're not an agent (presumably not).


Is it impossible to make an offer on homepath without using an agent?

So I'm using zillow.com to compare recent sales to homepath/ reo properties.

I noticed that the neighborhood were I was looking had recent sales for around $70-100k.

In addition, the "zestimates" (I know these aren't really accurate) were generally in that range too.

However, several clumps of property had a recent sale price around 2012 for $3.9k.

How can this be?


Did a wholesaler go in and buy a bunch from distressed homeowners and just happen to find a bunch to buy for $3.9k?

I checked the properties out on google street view. They don't seem dilapidated.

Thanks

-Patrick

@Justin Morgan Yes, I am talking about two different things.

I'm using an agent to procure fix and flip deals, but I'm also looking at probate lists myself.

It is my understanding that if I've signed a buyer agreement with an agent, even if I'm the one who found the property, I'm still on the hook to pay the agent's commission.

That is the root of my confusion. Does the buyer agreement with my agent apply to wholesaling?

@Jaren Barnes

Great advice!

Thank you so much!

Just to clarify, I wouldn't wholesale properties listed on the MLS.

My agent is currently helping me find deals on the MLS, but I could look through other channels.

My question is basically, if I find a seller through the probate list, for example, would my agent still get a cut of that if I wholesale the property? Based on the replies, it looks like maybe not.

@ Bryan L. At some point I think I'll probably have to do this. Thanks!

Hey all,

I'm currently working with a real estate agent to bid on MLS properties in order to fix and flip.


I'm very new to REI, but I would not be opposed to wholesaling.Right now, I'm only focusing on one fix and flip deal at a time.


I do have substantial cash reserves, but I'm looking to successfully complete my first flip before I make concurrent capital outlays on several fix and flip properties.


Wholesaling, it seems, doesn't require such large capital expenditures.

My concern, however, is my agent's commission. If I successfully find a seller and get a property under contract, could my agent's commission potentially wipe out my profit from the assignment?

As of right now I haven't mentioned the possibility of wholesaling to my agent. Truth be told, my mentor (not a fan of wholesaling) keeps telling me to avoid it because "I'm leaving money on the table". I see wholesaling as a hedge (kind of like how mutual funds invest in a variety of asset classes)- a way to mitigate some of the risk associated with the holding/rehab costs of fix and flip properties.

What are your thoughts about the agent's commission? When I assign the contract, would the new buyer be responsible for the commission?

Thanks!

-Patrick

I'm in the process of purchasing a single family investment property.

I'm planning on doing all of the cosmetic repair work myself.

I am not a licensed General Contractor.

Do I need permits for cosmetic work?

Will potential buyers' lenders look unfavorably upon improvements done by someone who isn't a licesned GC?

I know plumbing/ electric must be done by certified professionals.


How will this affect my tax situation? Can I claim a full deduction ($x.xx/hr for my labor? Are tools treated as expenses or depreciable assets? I went ahead and set up an LLC to buy/ sell real estate.

Thank you very much!