All Forum Posts by: Rock Shukoor

Great job Mike,
$20,000 wholesale fee on a $85,000 deals is way above average and you have done it. Congrats and keep going. Now make sure to find a good attorney to close with and repeat the process.

Now that is a first deal wroth bragging about. ;-)

sorry, I am getting sleepy now, the #2 is

2. Take your time with your buyers and find out what they are looking for, just like taking orders. Then go and find what they are looking for. It is always easier to find a house for a buyer than a buyer for a house.

Maranette and Antonio,
Welcome to the real estate world and Maranette congrats on your first deal. Everyone says knowledge is power, but the fact is, Applied knowledge is power. You applied the knowledge and got your first deal done.

I have been wholesaling for a long time now and let me give you a few tips that gurus would not for free. lol

1. Build your buyers list first. There is a buyer for every property, find the buyers first and even the other investors will come to you. Also, you will have a better life than most other investors in today's market.

2. Take your time with your potential buyers take other from other investors. The go and find what they are looking for. It is always easier to find a house for a buyer than a buyer for a house.

3. If you put a house under contract before building a buyers list, never put your money at risk. Always have an escape clause in case you cannot find a buyer in timely manor.

4. Do not wait till you learn everything, just do it and you learn while you earn.

5. Network with other experienced investors. You will learn a lot from them just by hanging around the right people.

6. Learn from the mistakes you make and do not repeat them.

7. Follow the path of success. Model a successful wholesaler in your market. Study what they are doing and model them. You will reach your goal faster.

Good Luck

Hi Mike,
Be very careful with this and take Sherry's advice.
If he is not OK with showing the property, he is not being upfront with his mother. Unless, he is OK with you showing the property but he does not want you to put a lockbox on the door for his mother's safety and/or theft.

BTW, my hardest deal ever was an attorneys house.

This is a buyers market and you need to remind him of that.
If it was me, I would let him know that I am going to wholesale the property to investors that I already have relationships with. Most attorneys do not understand wholesaling and they think it is unethical. You do not want to be defending yourself against an attorney, just fyi. If he is not OK with that then move on to another deal and stop wasting your time on this one.

If this is that great of a deal then here is the answer:

1. Do a walk through of the house with a video camera, record it.
For example, go here: [REMOVED]
2. Order a full inspection (this would cost you money or better yet, ask him to pay for it for inconveniencing you)
3. Create a flyer for the property

With those 3 things you can wholesale a property to most savvy investors. I have bought many properties sight unseen, looking at those 3 things and only do an inspection right before closing and even that was done by my contractors.

Good luck

BTW, there are a few people posting here and asking questions about asset protection and the use of LLC but I am not getting the feeling that all these posts have helped them in any way bcs of the types of questions they are still asking.
Brothers, No one can change your mind and convince you that you need any asset protection. And I hope you never need it but the use a LLC is the bear minimum so do not get cheap, just do it. Having an insurance policy is not the answer or it does not replace and LLC. You will thank us for it one day if something happened.

Some laws have changed and the great benefits that Nevada LLC used to offer does not exist anymore. There is no reason to use Nevada LLCs anymore. It is always good to have an out of state parent LLC and have other LLC under it. One way to add more protection is to keep the title in one LLC and use another LLC as the management company. That way you have separated the Assets from the liabilities.
The corporate laws in Delaware LLC has not changed much and it is offering better protection then most other states.

Ken,
That is the worst advice anyone can give an active investor. If LLCs and corporations were so useless why do they exist? Can you show me one millionaire that has everything in their personal name? Do not forget that we live in the most litigious society in the world. There are more attorneys in the us than there are real estate investors, (Real investors). I am not afraid of being sued nor am a slumlord but I do want to cover my hard earned money.

The insurance company paid for the repairs of the house minus my $1,000 deductible but not for the judgement, the vacancy, my lost time and the headache I went through.

I do not know anyone that have lost over hundred thousand dollars to their tenants, less than that I do know of some investors, but I do know people that have lost lots of money because they were sued for none real estate reasons and have lost their real estate empire bcs they had them all in their own name. Car accidents are the worst one of all of them.

"I see a lot of posts here by people who are afraid of being sued, but not many real world examples of a credible tenant lawsuit that actually happened to someone, and no examples of the veil being pierced in court."

I am a prime example of it. I have been counter sued many times by none paying tenants and the magistrate court judges have ruled against me 3 times. All I wanted was my rent payments or the possession of my properties and I end up paying my tenants which I had used common sense and practised good land lording. I do not want to go into details but in all 3 cases I have had shown all the documents to at least 3 attorneys and none of them found anything wrong with what I did. Everything was set properly based on GA law. I am going through one right now at no fault of my own.
My LLC corporate veil was pierced once bcs the judge did not understand how "Subject To" works and his response was, "When I purchased my house I went and got a loan, you did not do that so you are not the legal owner and it is fraud to sell a house that does not belong to you". He declared it fraud, fraud, bcs he did not understand it. This was a magistrate court judge in Gwinnett county, GA.

I had to pay $17,500 to a tenant that burned down my rental house, the fire report clearly said it was their fault. The fire started when they stacked clothes in the closed and they stacked them high enough where it was touching the light bulb. They left the light on and that cased the fire. Go figure, I had to pay for that.

Even when you do everything right, when your broke tenants need money and things are not going right for them they will seek an attorneys advice and their attorney is not going to take your side, especially when you are a setting duck and have all your assets in your personal name. ;-)

Now, let me not scare you guys, the percentage of the tenants that have sued me and have won is very low but it takes only one to bad case to take you off your game. So, be proactive and you will sleep better.