All Forum Posts by: Ethan Neumann

Investment Info:

Single-family residence wholesale investment in Durham.

Purchase price: $235,000
Sale price: $255,000

Took over the mortgage sub to and structured a seller carry-back for the remaining equity.

There was a tenant in the property until June of 2021 at which point the buyer planned on selling the property. Knowing this information, I negotiated the seller down another 15k by stating we could include a balloon payment at the twelve-month mark to cash out the rest of his equity.

At the time of going under contract, the property was worth around 295k-300k, built-in 2011, and in one of the hottest areas in the Triangle.

Investment Info:

Single-family residence wholesale investment in Durham.

Purchase price: $235,000
Sale price: $255,000

Took over the property sub to and had a seller carry-back the rest of their equity. (Hybrid Model)

There was a tenant in the property until June of 2021 at which point the buyer planned on selling the property. Knowing this, we negotiated the seller down another 15k by stating we could include a balloon payment at the twelve-month mark to cash out the rest of his equity.

The property was worth around 295k-300k, built-in 2011, and in one of the hottest areas in the Triangle.

We send the PSA to the title company/closing attorney as soon as we get the deal so they have it on file but you don't have to. I would simply call whoever you use and ask how they usually do it. 

The title search generally takes a few days but it depends on the title company or closing attorney. You can ask the title company you plan on using all of these questions. Remember, they are working for you, not the other way around. 

I am relatively new to the multifamily sphere as well! I know cap rates are generally used for commercial properties (above 4 units) and the cap rates really depend on the asset class and your market. 

From what I have learned so far, I would specify what type of asset you are looking for and then see what properties are trading for or ask a broker in that market. 

That is so awesome you are starting so young!

1. We start marketing the property first as the closing attorney we use will not run the title search until we have an end buyer and a signed assignment of contract. 

2. If the contract has a closing date of 30 days after it is signed, you will need to find the buyer quite a bit before that. If the deal is good, this will not be hard at all. You need to leave time in between picking a buyer and the closing date because the attorney or title company needs time to run the title search, get the buyer and seller info sheets, and prepare for closing. Some buyers also need a certain amount to prepare for closing. We have some buyers that need at least two weeks and others that can close in a few days. 

Yeah, there are a lot of different courses out there. Some are communities and others are just video modules. If you are just starting out, I would recommend joining one that also has a community of people you can network with and reach out to. 

Chris Jefferson has a program I used to be in called "The U". I would look into that.

There are so many different contracts out there. I would go online and get sample contracts from the "gurus" and then bring that to your closing attorney or title company and have them look over it. 

For example, Max Maxwell has a purchase agreement and an assignment of contract on his website. 

You can contact your local title company or closing attorney (depends on the state) and start the process with them. Ask if they do assignment of contracts and/or double closes. Basically, vet them to see if they know what wholesaling is... the process can be a bit annoying if they don't. 

There are contracts you can use online. A lot of the gurus have sample contracts you can use. If you want, you can have your title company look over it. 

@Daniel O'Neil  Batch skiptracing has by far the most accurate numbers. We have tried a lot of different companies and you get what you pay for in the data game. 

I've never used rocket skiptracing so I can't speak on that but we have tried a lot of other companies. 

I actually disagree with @Antoine Martel. I think the best time to get into wholesaling is now! How are you going to capitalize on a shifting market if you have never done it before? 

Getting good at wholesaling is very difficult. There is so much backend stuff that people don't talk about. It also takes time to get good at sales and closing. Start now so you can be ready.