All Forum Posts by: Gabe Waldrep

@Jay Hinrichs sometimes eliminating commissions and closing costs on a cash sale can make the deal more appealing to a seller. This can easily be a $8000 swing. Not all sellers know the market. Personally as an agent and a wholesaler, I pitch both sides to a seller and let them decide. If I think the benefits of listing the home on the market truly outweigh an off-market sale, then I tell the seller. I try to suggest what is best for them and their situation. Some sellers only trust the agent or wholesaler they are working with and don't want strangers in their home unattended even if that means they are with other agents.

I fully agree that often selling off-market is not the best thing for the seller. But many houses will not pass inspections or qualify for a loan due to condition, and many sellers do not have the cash to make the repairs. 

Also when selling off-market, there is less of a chance that the contract will fall through. Most wholesalers who run their numbers correctly can find an end buyer before their contingencies expire.

Every seller has a unique situation, and it is our job to figure out what works best for them.

@James Hong you are always welcome to contact me. I’m happy to help with anything I can. And depending on where you are looking in Texas I may have some connections or suggestions for property management.

From a wholesalers perspective, you need to emphasize the repairs needed and costs that may come up if a buyer gets a home inspection. Breakdown the realtor fees and closing costs. Let the seller know that with you he doesn't have to pay either of those. So make a net sheet showing his bottomline for each option. Remind him that if he goes to market, he will have to deal with multiple showings, a 30 day escrow, the potential of a buyer backing out after inspections, financing that may fall through, appraisals, etc. Paint a picture that selling to you eliminates much of that headache. You will only have "contractors" coming through during your inspection period. 

Go to local REIA meetings to network with agents and wholesalers. Let them know your interests and have them bring you deals. While you are new, it might be good to make friends with a real estate agent to guide you on analyzing deals because you want to get advice from someone you can trust and someone looking out for your best interest and not just their own. Some wholesalers will help guide you as well, but you have to be careful because they are trying to sell their deals and will shine the light to make them look as good as possible. Especially if they know you are new and inexperienced.

If you do not plan to be an active agent and work with other buyers and sellers, then I don't think the big-box brokerages would benefit you. If you are only using your license to find and sell your own deals, then you should go with a flat-fee or per-transaction fee brokerage. You definitely don't want a commission split nor do you need the systems and training that the larger brokerages offer.

As far as your own purchases, you could start out using a lawyer to review documents and help you understand everything until you have a better grasp on it. It would be good to network and find an experienced agent to help you review and prepare your first few offers and contracts to be sure that you have everything lined out correctly. 

Hi Elliott. I'm in the HEB area with a lot of experience in the Grand Prairie area when I worked for Memphis Invest. If I can be of any help, please don't hesitate to ask.

If electrical wiring and plumbing are damaged, worst-case scenario you are looking at all copper wiring and copper water lines being stolen. So you would need a full rewire and repipe. On the plumbing, did it say if the test held or failed? When it says "Compressor 35 psi for 10+ mins" that sounds like they did an air pressure test on the water lines and usually means the lines are present to perform the test. No guarantees though. For the Electrical, it sounds like they tried to hook up a generator to test the house but were unable, possibly due to missing/damaged wiring or outlets. 

This is all a guess based on houses I have seen though. If the house has been vandalized and copper stolen, you are also looking at an extensive amount of sheetrock damage, usually doors, possibly broken windows, damaged plumbing fixtures, and damaged HVAC systems. All worst-case possibilities which is what I plan for so that I am not caught off-guard. Hope this helps.

I would definitely recommend having your own agent help and represent you. The listing agent represents the seller and will always act in their best interest. This means they may not always give you the best information or advice, where an agent acting on your behalf is doing everything to benefit you regardless of the effect on the seller. Depending upon the state laws, that buying agent working for you may not cost you anything. Here in Texas and several other states, the seller pays the commission for both sides of the transaction. If this is the case in Nevada, then there is no reason not to get your own agent. 

Regardless of who pays commission, I would always recommend getting your own agent. Spend some time with that agent letting him/her know exactly know what you are wanting. Once you become familiar with the area then you can consider acting on your own if you want, but it's always good to have someone working your side especially if you are buying out of state.

@Gavin Joel arredondo I would definitely bring him with you. He can be a business partner or advisor. Pictures are helpful, but they never tell the whole story.

@Account Closed that would be the most advisable for your first purchase, but I understand wanting to avoid it as well. Maybe even see if your agent will accept a lower fee since you found this property, and he will just be helping you scope it and determine value. Just a thought. I usually lower my fee for investor clients.