All Forum Posts by: Ed Wood

"The Realtor answers tend to be straight down the line conventional and it's black and white and that's the way it is."

- think this can be attributed to liability risk, being accountable for what they say, do and recommend. Bound by agency laws and over-site from NAR, CAR and local RE board, and of course the state BRE, continuing education on laws, regulations and legal forms?

"The Investor answers tend to be somewhat creative, a little different, a lot of gray."

- No over-site, no liability, no potential consequences for their actions?

@Lance Pualani

This is exactly what you do. First off you must have a copy of the deposit and proof of funds and/or pre qualification presented at the same time as your offer. That's just how it is so no skirting the issue, anything less raises red flags with a listing agent and a experienced listing agent would probably blow you off. SO this is what you do.

1. Both your names on the purchase agreement. Put the investors name first on the purchase agreement (AKA offer) and your's second.

2. Submit the offer WITH a copy of the deposit check made out to "escrow" and provide the proof of funds and/or prequal letter.

3. When your offer is accepted and you open escrow and after you remove your inspection contingency ask escrow to addendum you off the purchase agreement and enter a agreed amount professional fee (finders fee) to be paid through escrow.

Done!

Why do you do it this way??

1. "assigns" offers are a dead give away to experienced listing agents that you're wholesaling a property and there is a larger potential for escrow fall out. This is like show up to a formal party in a nice suite but you're wearing worn out sandals.

2. By putting both your names on the purchase agreement you are protecting both your interest in the purchase. So you don't get screwed out of your fee.

3. Have your agreed fee up front with your investor before you write the offer and put it in writing. Then what you are doing is trading your ownership interest in the property for a fee and escrow can do this by a simple 1 page addendum signed by you and the investor.

Got it?

@Christopher Cafferty

25% down is needed for 2-4 units, you don't nessaryly need a fixer to make the numbers work.

LOL thanks for the vote!

I do 2-4 unit deals in Long Beach and surrounding areas and have 12 years financing experience with these types of properties if you are interested in talking.

Agents, investors, or borrowers trying to modify probably knows what I'm talking about when dealing with Ocwen was a horrible experience.

Ocwen to Pay $2B for Servicing Violations
http://www.dsnews.com/articles/ocwen-to-pay-2b-for-servicing-violations-2013-12-20

YAY!

I would buy 10 4-unit properties with 25% down (it's the minimum for the first 4 then 30% for the 5th - 10th) and use the balance to flip properties. The 10 would max your fannie/freddie allotment of loans, you can take depreciation to off set any income starting first year too. Buy in the best areas, don't go cheap, it pays off in rentals.

Whamo! stability with regular monthly income, depreciation to off set income, a fantastic opportunity to pass down to your children so the can have stability and security.

Annual Price Gains Accelerate to 7-Year High

FHFA Wants to Hear Your Thoughts on Proposed Loan Limits

really, really, really, simple just instruct your closing agent what to do and they'll handle it, this is done all the time. One thing to note if the buyers are getting a loan lenders restrict the total percentage credited to the buyer depending on the program but generally it's 3%.