All Forum Posts by: Devin James

Breland Almadova, here's my take (I've never wholesaled, but have been actively investing for a couple years)

Wholesaler: "I will like to buy your home for $100,000. I have cash and can close in 45 days with a 10 day inspection period"

Seller: "Yes, that will work. Lets fill out this contract that with the terms" (Wholesaler makes sure to mark that the contract IS Assignable)

     Conversation Ends

Wholesaler: "Hello Investor, I am a wholesaler & I have a great deal for you. You will need to close by this date, and you have this many days for inspection. Here are the numbers: 

      Purchase Price: $110,000

     Rehab Budget: $5,000

ARV (After Rehab Value): $150,000

Investor: "This looks amazing, I will like to purchase this property for $110,000"

Wholesaler: "Great, here is the assignment addendum which says that I am assigning you this contract (Original contract) for $110,000"

The wholesaler will then send the closing company the addendum, and the closing company will take care of the rest. At closing, the seller will receive $100,000. The wholesaler will receive $10,000. And the Investor will pay $110,000. Exact numbers for simplicity. Depending on the terms of the contract, there will be closing costs on both sides, but usually the wholesaler will take the difference between the contract price with the seller & the wholesale price with the investor.

Also, different states have different laws regarding wholesaling. You may or may not be required to let the seller know that you are a wholesaler, talk to experts in your area.

Im not trying to be rude, just trying to explain as simple as possible lol! 

Hey Jayson,

I think most people will agree that it's best to see the property before purchasing, especially your first rental property. I suggest buying a plane ticket & spending some time in the area. A plane ticket is well worth the expense for this type of purchase.

If that isn't possible then i'd pay a local investor and/or contractor to walk the property for you while you facetime them. 

Good luck!!

Hey Donna, (This isn't legal advice, I recommend you contact an attorney)

Thats an unfortunate situation, I would assume that the ex would be owed half of the funds from the sale if her name is on the deed. Especially if there's nothing in writing stating otherwise.

There may be an argument since your boyfriend is the only one putting money into the remodel. But depending on the net proceeds from the sale, the cost of litigation may not be worth the fight.

Again, not legal advice - contact an attorney

Many people offer cash for keys to avoid the eviction process. You basically pay the tenant to leave the property. I personally haven't had to do this before but i've heard success stories.

Hey Dominic Pizzi,

I house hacked my first deal. It significantly helped me save more money with the lower monthly payment. I also fixed up the property that I house-hacked and eventually sold it and put those funds into my current house-hack where I am also completely renovating the property. 

House hacking is the best way to get started and will recommend it 9.5 times out of 10.

Hey Tommy Feraco Jr,

In my experience here in FL the due diligence process has been similar to that of an already built home. I recommend making sure that the builder offers a good home warranty plan. Also, make sure you have a blue tape walkthrough where you and your buyer walk through the property close to completion and mark all of the issues you notice with blue tape. This walkthrough is for cosmetic issues, for example - chipped paint, excessive grout lines, cracked tile, or whatever else you find that shouldn't exist in a new build. The builder should then fix all of those issues before closing. 

This is just my experience, i'm sure there are some experts out there that know much more.

Welcome Parker Seale!

Read, attend local meetups, read some more, attend some more meetups. Hopefully you will find a mentor who can steer you in the right direction, & then dive in!

Hey Mark Barbee,

If your family isn't in the business, then I wouldn't listen to them. Family & friends will always think it's a bad time to get into real estate.

Hey Kelly G.,

It all depends on your financial goals. But it's good to remember that with seller financing, you can require the buyer to put down 20%, or 5%, or 25%, choice is yours. That way, you can have some cash to potentially invest & also have monthly income coming in.

Definitely need to get rid of him, he's a liability at this point.