All Forum Posts by: Duncan Hayes

This morning I read an interesting post within a REI group I participate in on Facebook.

A gentleman in there stated that he requires his assignment fee at the time of assignment, prior to closing. He stated that it’s not the person assigning the contracts job to remain in the deal, but to just assign the contract instead of continuing to deal w/ the seller or closing agent.

This really intrigued me and it does make sense to me. Is anyone else that wholesales implementing this approach? If so how did your buyers respond to the request the first time you set the expectations?

Thanks in advance!

@Nathan Norway given the details I’d choose option 1. Cap rate is what was the deciding factor.

@Tracy Selfridge I agree. Doesn’t matter who has more time, it’s Who uses the time the most efficiently.

@Bob Daniels you don’t know me or what my full time biz model is or how we operate. Keep guessing though ;)

@John Thedford my assignment fees are never more than $7k. My sellers walked with over $20k on my last deal. My buyers sold for $74k profit. House still had $30k in equity that the new homeowner will grab immediately after recording the deed.

Again, you’re speaking on what you’ve seen and heard about. Not EVERYthing or EVERYone that’s doing it. I would never put a $30k fee on a deal just bcuz I can and I know plenty others that operate the same. You’re speaking on all negatives without acknowledging any positives being done.

To all reading this that are new, I would hope you’d take the advice of someone that can acknowledge both sides of the discussion rather than those that just beat the side they don’t believe in down so that what they’re saying looks like the only truth.

Again, do not group me in with what you've seen on HUDS etc because I can guarantee you have never seen a HUD that belongs to a transaction I've done. Don't speak on what I've done in my community because I'm also willing to guarantee that you've never been inside of it. Us removing problem neighbors, saving owners from being foreclosed on, improving property values by cleaning up eye sores, is definitely helping our community, whether it's adequate help in YOUR eyes or not.

God bless you all. I’m out.

@Jay Hinrichs again, you guys need to stop grouping everyone into a category when you don’t know how everyone operates. I don’t pay gurus nor do I follow em or everything they say. I’m not worried about other states and what they allow, cuz the state I operate in its 100% legal and it’s not even required of me to disclose my assignment fee. Mail companies probably definitely don’t love me because I don’t do direct mailing to sellers. My company actually helps people and has saved folks from being foreclosed on and thrown onto the streets with nothing.

You won’t sit here and tell me about what I do when you don’t know me, my business, the folks we’ve helped, or the change we’ve brought to the community. Like I said, there are bad apples in every industry and that can’t be controlled 100%. Doesn’t mean you can group everyone that does something into a category because some of the folks doing it are doing it wrong.

If that’s the case, take everyone’s license away and remove cars from the road because we cannot control whether everyone who drives a car is sober or not. You guys are in here beating up on a real estate strategy to make yourselves feel like you’re a superior investor or whatever the case, instead of telling the gentleman flat out that there is a right way and wrong way to do things. Do things the right way and have ZERO worries. Simple as that.

@Bob Daniels I have the intention of actually purchasing a property if I put it under contract. Whether I purchase or assign after it’s in contract is my decision, since the contract is assignable. It’s unfortunate that there are people tying up properties and failing the sellers, but that doesn’t give you or anyone the right to group everyone that wholesales a property into a category of acting illegally. There’s bad apples in everything, and that is something that we cannot control.

People like Ron LeGrand have been wholesaling and purchasing properties with little to no EMD since the 80's. What's the issue now?

@John Thedford that’s why you market your role in the contract to purchase that property & not the property itself. ;)

@Matt Hatton there is nothing illegal about wholesaling real estate. Sounds like someone has a bad taste in their mouth from a bad experience. But, to hear someone speak about ethics then openly admit to going behind another’s back to basically steal a deal is kinda ludicrous if you ask me.

Every contract in the USA is assignable unless otherwise stated in that contract. This applies to real estate contracts too. You are not brokering Real Estate, simply selling your role in a contract to purchase a piece of property.

Hello all and thanks in advance for the help. I’m fairly new to wholesaling and have successfully closed one deal.

I have a $500/mo marketing budget at the moment and am curious how others would allocate those funds for optimal use.