All Forum Posts by: Edward Payne

@Account Closed are you referring to the high end training? e.g. "pay me $50,000 and I'll show you everything."  I've been to some good training on the lower end of the price spectrum.  Those training programs focused on strategy and developing the mindset of an investor.  They didn't get into the nitty gritty.

@Jeff Rappaport THANK YOU...awesome advice, you are helping me tremendously.

@Paul Timmins THANK YOU for the book recommendations.  I hadn't heard of those books, but they sound like exactly what I need to read.

 Thanks so much for your advice and insights.  Please help me understand the statement above.  Are you referring to the earnest money?

Thanks for joining this discussion and helping a newbie.  The idea of buying and then wholesaling came from Than Merrill's "The Real Estate Wholesaling Bible."  I guess at Than's level, he may buy the property as a means to open up different strategies (e.g. try wholesaling, if no luck, go to fix and flip, if no buyer, keep as a buy and hold).  I like the idea of double closing with properties with BIG earnings.  I'd rather not have the original owner knowing how much my company earned on the property while they're at the closing table.  

Hello… I’m a new real estate investor and have spent a good share of time getting investor education. Like many new investors I’m starting out with wholesaling. Through my education journey I’ve learned of a few different methods or processes for wholesaling. I’m seeking help to streamline all the information I’ve gathered into a process that will work for me. I’m a somewhat confused and hope you will help. Obviously, insights from other wholesalers that are out there doing deals now is GREATLY appreciated.

Here’s my take on the wholesaling process;

• FIND A DEAL – that is a property I can place under contract for no more than 70% of ARV. How does my assignment fee factor into this? Should I be backing out my assignment fee from the MAO or does the buyer account for the fee from their 30%? I'm currently using direct marketing and driving for dollars to churn up leads.
• After finding a deal, I initiate a contract and be sure add “and or assigned" after my company's name (I'm using an LLC to protect personal assets against lawsuits). I was told to never give the property owner any money. Also, I can set the terms on how much earnest money will be put down and how long the home will be under contract.

• •THIS IS WHERE THINGS GET CLOUDY FOR ME. I’ve studied three different approaches and not sure which is the best/correct way to go.
• 1.Go to a title company, pay earnest money, close on property, then seek to wholesale it.
• 2.Go to a title company, pay earnest money, then find buyer (agree on property price and/or assignment fee), have buyer pay you an initial fee that will cover the earnest money I put down, assign the contract to the buyer, then send an invoice to the title company for the agreed upon amount of the assignment fee, get paid at closing.

• 3.Don’t go to a title company but find a buyer FAST (or have one lined up before finding a deal), assign the contract to the buyer, have the buyer handle the title company & earnest money, send an invoice to the title company for the agreed upon amount of the assignment fee, get paid at closing.

• Some advice I received from a title company: don’t make the assignment fee more than 6% of purchase price unless you have a really good reason asking for more (need clarity on this one). Their take on the process: 1) find deal, 2) Inspect property, 3) my company pays earnest money, 4) find assignee, 5) may get “assign money” when contract transferred, 6) Get paid at closing

Most of my training and personal study has explained the wholesaling process in broad steps. I’m really looking for some DETAILS in order to avoid blowing deals and learning the hard way.