All Forum Posts by: Anthony Ogletree

Hi all.

I need some advice on refinancing a rental property.

I'm going to be purchasing some buy'n'hold properties very soon. Due to my limited capital I'll need to use hard money to purchase and fix said properties for rent. What I'm trying to do now is secure financial backing in the form of refi options for when the properties are rent-ready. I plan to visit as many local community banks and credit unions as I can to have it locked up BEFORE I start looking for deals. Is this a good strategy? If not, what would be a good strategy?

I saw you mentioned you wanted to consider wholesaling. I just acquired my RE license a few weeks ago with the the same thing in mind... be and Realtor AND wholesale, but this was before I spoke with a lawyer. Turns out, at least in PA, that building a business around wholesaling is technically illegal since its pretty much acting as a real estate agent without a broker OR a license. You're marketing properties you have no intention of buying; merely having the seller sign an options contract or a purchase agreement that you sell to an investor. If you get caught doing this or making a mistake you might be looking at fines or even jail time in a worse case scenario. I'm not an attorney, so I'd suggest before you get too heavily involved in wholesaling (especially once you get your RE license) contact a real estate attorney (emphasis on a REAL ESTATE attorney, not just any attorney), set up a free consultation, and let them brief you on the license laws of your state. 

I read an interesting article on PA laws as it pertains to licensed and unlicensed real estate transactions and deals. As it turns out, what most "wholesalers" in PA do (at least most of the ones I know) is actually illegal. I used to do some wholesaling last year and now I have my Realtor's license. I figured this would give me a good angle on some great deals while working both the retail and wholesale avenues of moving properties. I decided to call an attorney before signing any documents with my broker since I didn't want to set myself up for failure with my wholesale deal. He pretty much explained to me that if I never intended to actually "buy" the property myself, its considered marketing if I repeatedly have homeowner sign options contracts and then sell said contracts to investors. If I market properties, it requires a license and if I already have a license that property must go through a broker. Its O.K. to wholesale a property in PA if I either A.) Actually buy the property, take hold of the deed, then move it afterward or B.) Consistently purchase properties for investment purposes and move a contract here or there as incidental to my investment deals. I'm not a lawyer or even an expert at wholesaling by any means, but If anyone in PA is either currently wholesaling or considering it I would STRONGLY suggest consulting with an attorney for the do's and don't of how you're allowed to run your deal legally.

I appreciate that very much!

Does anyone have any suggestions on how to generate a good buyers list as it pertains to local landlords? I was told when it comes to "war zone" areas I would have an easier time marketing to investors that already own property there.

Absolutely. When I posted this I want fellow new people to really examine themselves. Wholesaling (and Real Estate in general) is a move one has to be committed to on ALL LEVELS. When I was told how difficult it was (following a post by moderator @Jon Holdman), I did not get discouraged at all. The complete opposite. I WELCOMED the challenge! When I was told there was a 99% chance I would not succeed I did not run to the hottest guru or coach for affirmation. Quite the opposite; I put on my Big Boy pants and said "LETS GO!" I will BE the exception! I personally LOVE the struggle. The harder I grind, the sweeter success, and the more I will help others to see the rewards of TRUE HARD WORK (Lead by example). I have no choice but to succeed. I have people that depend on me to succeed. I have told too many people about the success that I will have now I have no choice but to back it up.

In short, if any of you newbies want this deal prepare to WORK... HARD! If you are allergic to hard work like I am allergic to "average," keep it moving!

Hello all! I just want to talk a little bit about wholesaling. I'm sure this is one of the most well discussed topics here on BiggerPockets (and everything that follows has likely already been covered a hundred times) however I would like to offer yet another point of view for the newbie investor that was told how "its the best way to start your wholesaling career."

First of all, WHOLESALING IS NOT EASY! There, I said it. Wholesaling requires A LOT out of you both mentally and physically. I would only recommend it to those who have a clear understanding of the work that is needed to build a successful deal. I have a clear vision, purpose, and goal yet I am tested everyday... EVERY SINGLE DAY! In order to be successful in this consider what it takes to be successful in other sales positions that 99.9% of you would turn down. How many of you aspire to be successful life insurance agents...or car salesmen...or even a realtor that just focuses on retail home sales??? Well, to a large degree, wholesaling can be even more difficult.

Secondly, it is very time consuming in both learning and applying what has been learned. Forget what the many gurus and late night infomercials will tell you... you need to put in your own work and get good with people skills (basic psychology helps), marketing, cost estimating, and general improvisation on ALL levels. You have to be two steps ahead and have contingencies for your contingencies at all times.

Third and most important, this game will test your will greatly, especially if you go it relatively alone as I have. I tell everyone that if you want anything in life that's worth having you must have a "why" that is bigger than you, because when your will is broken (and it will be no matter how strong you are) this "why" will carry you. This is especially true with Real Estate.

There are many experienced wholesalers and investors that will both agree and disagree with much of what I have said, however, as a new person in this deal (studying the game since Nov. 2013 and active in the game since March 2014) I felt like I could offer a different viewpoint that can be more relate-able to other newbies than a more experienced investor. I have been struggling, and yet the most important thing is I have been learning! I would not trade this for anything in the world even though I have not even landed my first deal (although I have had to walk away from several that just didn't work for me or my investors). I WILL succeed in this deal and ANY newbie can too so long as they understand the sacrifices, hard/grinding work, and time that will be needed to be successful. I know it will be worth it in the end!

This is why, just as Ned said earlier, I am not a "consultant" nor am I "selling a house as a consultant" to a buyer/investor. I am merely assigning my interests in buying via an options contract. That sounds legitimate to me!

P.S. I am in the process of obtaining my realtors license anyways for, among other reasons, to eliminate gray areas.

Thanks Ned. What you were saying about selling the contract and not the house was my original understanding in the first place. As always, I appreciate your input and clarification!

Can someone tell me what is the difference between an assignment of contract and a consulting agreement as it relates to wholesaling. I have a potential deal lined up and it was my understanding that I was to just assign the options contract between me (the wholesaler) and the seller to an investor. Now I'm being told that I need to do a consulting agreement between me and the investor. HELP!