All Forum Posts by: Account Closed

Ask them: "How much would you want to be paid if you marketed for the deal, Negotiated it down to a price that makes sense and got the seller to actually sign the contract?" 

Know your value. 

...

From what I remember the state of Florida follows the "Rule" of equitable Conversion which allows you to attempt to sell (market) the property before you buy as long as you have a binding contract and intend to actually close before you resell;

 The problem is that in order for a contract to be valid you have to have the intent to actually purchase the home meaning if you go into the contract with only the intention to assign the contract by law the contract isn't valid. 

But...You're not acting as an agent if you're a principal in the deal technically, there are A lot of grey areas in Wholesaling...

A good idea is to find a way to actually close maybe even using transactional funds or at least attempt to raise capital for the purchase, just like syndicators for commerical real estate, that way if you can't raise the money and an assignment is the only option you'd pretty much have a valid contract because your intent was to close. 

I am not an attorney but I do speak with them frequently. 

Luckily there are professionals who can accurately (most of the time) estimate rehab costs, there are agents who have a good grip on the market, appraisers who can tell you the As-Is value, etc. You don't have to figure it all out alone, but you will have to pick up the phone. 

You want to look for reasons to NOT buy, not the the opposite. If you have a gut feeling it's a bad idea try to validate that idea, if you can't then you consider the acquisition. 

The formula I use for wholesaling doesn't take repairs into account because when using the lowest comps we figure those comps represent houses that needed work and we're offering 80% of the average.

secondly we don't just assign contracts to flippers some of our end buyers are owner occupants, landlords or even  people buying for tax reasons.

We don't try to wear too many hats, buyers can request a estimate report but we've found that buyers are going to send their guys to do a repair estimate when it's all said and done anyways, get 10 buyers in a room and you may get 10 different answers on repair costs, our formula keeps us focused on what we do best which is create an offer that meets all of the sellers needs. 

Paul, we do business a little differently than "Wholesalers" do, being that we don't just assign contracts to fix and flippers (we actually close then resell) we have a different system in place. 

And when I mentioned not making it complicated I wasn't talking about the 70% rule, I was speaking on using seller financing or as a beginner. 

Instead of trying to poke holes in what others are saying first try to understand. 

Looking for investor friendly listing agents in Dane, Eau Claire and Brown County Wisconsin. 

Assignments are basically built in exit clauses, unless a contract says you CAN'T assign it you can in most states. 

If you're using a purchase agreement it means you intend to buy the property, if you're using a binding contract with no intent to actually close on the property (the "real" definition of Wholesaling) then you're in a grey area legally. Use an option contract instead or find a transactional lender to do back to back closes with. 

Remember: Intent to close and ability to close validate purchase agreements. 

Also if you're wholesaling properties from the MLS you're not really adding value to the transaction, it would be like selling band-aids outside of a hospital.

Not sure about the laws in Florida but where I'm at we have equitable Conversion laws which is a fancy way of saying we can resell before we actually close as long as we actually have intent to close on the property, which would be "Wholetailing" not Wholesaling, check with an attorney not an agent because real estate agents aren't supposed to give legal advice. 

Personally, I'd find a different strategy to begin, wholesaling is not the only way to get into real estate with little cash.