All Forum Posts by: Derrick Reyes

Hello! I'm a newbie BRRRR investor and I understand making trusted connections with wholesalers is key to finding those off market deals. However it seems to be difficult to find information about how to acquire a property from a wholesaler. What is the order of operations?

When I'm interested in a wholesale property:

Do I make an offer to the wholesaler?
If so, who draws up that paperwork to make the offer and contract legal? 
Are agents not a part of this process?

Thanks!

@Katie Balatbat

Thank you so much for this awesome information. I know you mentioned that a CA LLC would need to be registered as a foreign entity in the state where the rental property exists but do you know if this is true for all states? My accountant said that not all states would require that and I was wondering if MI was such a state.

I own a CA LLC. If the CA LLC owns a rental property in MI, do I have to register the LLC as a foreign entity doing business in MI? Thanks in advance!

I am finding that the answer to the question "Can I use HMLs to make a cash offer." is No. 

The answer seems to be that HMLs are in between conventional loans and all cash and should not be sold to sellers as a "cash offer". They have advantages such as quick closing and qualifying based on the property, but often still have contingencies in place. 

Thanks for your responses! Okay I understand what a lot of the responses are saying. Totally understandable all of it. I suppose I should rephrase in this way:

Common REI education resources such as David Greene's BRRRR book tell new investors like myself that hard money is an option. The messaging is usually something like "If you use a hard money lender, you can make an offer to the seller that is the same as a cash offer". I'm finding that this kind of messaging is not true however because of the contingencies. Yes, there are loan options out there for new investors that are built for BRRRR, but no, they are not the same as cash offers.

A better question might be "Can I use HMLs to make a cash offer". the reality I am experiencing is not in agreement with what I've read. 

Hello! I'm a new investor getting started with BRRRR in the Detroit area. I thought I had found a couple lenders who would do fix and flip loans with new investors. However these lenders still require an appraisal, contractor estimates, etc. before closing. That means I can't use these loans to make cash offers which severely hamstrings my ability to make discounted offers. Is it possible for a new investor to get a hard money loan that doesn't require an appraisal? If so, any referrals are greatly appreciated. Thanks!

This is a great thread! I'm an investor from California and would like to learn more about investing out of state in Ohio. I'm happy to learn and make contacts to that end so if you are a licensed agent, investor, property manager, etc. I'd be happy to connect with you. @Mike Mocek I'd also like to connect with you. Thanks! 

@David C.

Ah, of course. Forgive my newness. And of course thank you for the advice. I may have been a bit over enthusiastic and I'll come back when I'm a bit more specific.

Thank you!

Derricki

Hey everybody,

    I'm looking for recommendations for investor friendly agents in the SF bay area. I know good agents who look out for the best interests of their clients and help educate are tough to find so I thought this would be a good place to ask. 

Thanks!

Derrick