All Forum Posts by: Sean D.

 UPDATE:

Even when some of these banks drag their feet or seem uninterested in your deals, "keep it pushin'" and you will find one that wants your business! I was able to find a local bank (portfolio lender) that allowed me to do a 75% cash-out refi on a rental that I bought 2 months ago. They simply wanted to have a copy of my lease and a list of the improvements I made to the property. There is light at the end of the tunnel...

Kinda late finding this post, but I'm experiencing the exact piss poor customer service right now from a local portfolio lender. The guy told me what docs he needed, so I prepared a packet and delivered them to his office (unbeknownst to me while he was out of the office for a week). He did call back to say he'd gotten the paperwork and that he'd call back in a few days. Well, a few days came and went and I called him. He apologized and said he was behind due to being out of the office for a week. He said he'd get back the following week on Tuesday. Well, Tuesday also came and went so I called and left a voicemail...no response...then an email...no response. I finally decided to move on to another lender because this guy is apparently full of s%$t!!! Its frustrating when you have good credit and equity in your properties, but just so happen to deal with unreliable loan officers. Maybe I'm too much of a small fish for this jerk, but at least be professional enough to communicate.

Matt, I've used the USLegal forms in several transactions, and tweaked them a bit, but the sellers had no problem with the length of the forms. You can use a one page contract. Some "gurus" even teach that 1-page method, but the longer contracts are out there and available for a reason, and like Ann said, "there's not a problem until there is a problem."

You can try http://www.uslegalforms.com/realestate/. They have nationwide contracts that conform to state laws.

Nicole, Marcel is right. Simply call around to local title co's.. The only thing they can say is yes or no. Some might even say "huh, what's that?" when you ask about assigning contracts. Then you'll know they are not investor friendly. Ask to speak to a closing agent though, because the receptionist may not know the answer to your question.

Good luck.

Steve is right Cashflowboy. You can have five different appraisers assess one house and guaranteed all of their valuations will vary. I know this first hand!

There are different motives for assessing property. Counties have theirs...for tax reasons of course. Appraisers sometimes have theirs, especially those FHA appraisers (Need I say M.I.P. - Mortgage Insurance Premium?) Don't get me started on that racket!
When everyone was making tons of money several years ago and property values were skyrocketing, some appraisers were getting paid to come up with certain values. Think I'm getting a lil too political, but like Steve said, just don't rely too heavily on the appraisal report. Have you seen the report and when was it done? Make sure you do if there are no other comps.

Kevin,

Foremost, clarify what you mean by “bird dog client?†A bird dog should simply bring you deals that you’ll decide whether or not to pursue. Thus, a bird dog is not a client…more of an independent contractor. You don’t work for him or her.

1. Whatever you send, (letter, postcard, handwritten note), it doesn’t mean the seller will give it a second look, and it could very well end up in the trash. In fact, most will. You always want to let sellers know that “YOU BUY HOUSES.†The average seller will have no clue what you mean by putting their house under contract or what a wholesale deal is. You should be up front and let them know you may bring in an investor partner to close the deal, and make sure your contract is assignable.

2. MLS Permission? For what? Not necessary in a contract. The purchase contract gives you equitable interest in the property and you can advertise it as you see fit. Do you plan on listing it with a Realtor? That’s not what wholesaling is about. Some wholesalers will use a MLS Flat fee service for their deals but that’s roughly a couple hundred bucks for a Realtor to place your FSBO in the MLS and you pay them 2-3% commission if they bring you a buyer. If the property works and the numbers are right, end-buyer investors will ring your phone off the hook, and that’s how you start to build your buyer’s list.

3. Just do a Google search for transactional funding and you’ll find out those companies' requirements. You’ll most likely find that you need a legal entity and an end-buyer in place…and of course the numbers have to work! Not sure why you’d need transactional funding though unless you’re doing simultaneous or back to back closings. As a wholesaler, you really don’t want to have to close on a property, unless necessary. It’s best to just assign your contract to your end-buyer and collect your assignment fee at closing. REO and short sale deals typically require the use of transactional funds for reasons too long to explain here.

4. Good idea. Look for a mentor in your area, or partner with another experienced wholesaler. Try to connect with a local real estate investment club if you have one.

5. Home inspection? A few contractor estimates? Price opinion before you put it under contract? Kevin, you’ve got a lot more to learn, so don’t be afraid to take your time to learn the business and what a real estate deal entails from start to finish. As a wholesaler you don’t want to pay a few hundred bucks for an inspection. You want to get in and out of the deal ASAP. As for the price opinion you don’t need that either. Most Realtors will charge you for that. Run your comps yourself so that you know the numbers work. A more experienced investor can teach you how to do comps. (It’s basically averaging, which we all learned in elementary math) Do a visual inspection and estimate repairs yourself. This is where experience comes in. Interested investors (your end-buyers) will want to see the house too and can determine what repairs will cost more accurately.

Good luck

I agree Tom,

I have a NCND but I've never had to use one.

John,

You can also use a non-circumvent agreement with your end-buyers, which is basically a form, in which they agree not to go around you.

LOL, Thanks Rob.