All Forum Posts by: Jeyo Punnakottil

Thankyou all for your comments and help.I just walked away from the wholesaler because she was adamant about giving the 5k deposit to lock in the deal to her LLC.I was not comfortable with that .I offered her the full asking price but wanted the 5k nonrefundable deposit to be held in title untile i get a clear title to close ,which she refused.She said she will not show the house to me until i lock in the deal with the 5k deposit issued to her LLC name(AGAIN NOT IN TITLE COMPANY'S NAME BUT HER LLC NAME). All i wanted to know was figure out where to add the 1bath as this ppty is a 3/1 .She wasnot willing to show.My gut feeling told me to walk away.

Appreciate all your comment .Thankyou all.

@Josh Caldwell

I donot understand how the deal is bad.Here are the numbers

Arv 275-280k

Rehab 40

Front closing cost 7k

Holding cost 1600/month for 4 months

Back closing including 6% commision 21k

Purchase @165k

Where is the flaw ??

@Jerry Puckett

But still shouldn'tthe non refundable money be handled through a title .I understand it is non refundable .Here is the catch in my situation ,hopefully you read the red flags i saw on the wholesalers side .I am ok with the 5k non refundable money .What if i gave it to her and she cannot give me a clear title .First time doing business with her what if she vanishes after getting the 5k.Even if the 5k non refundable money is held in the title and if i donot perform the wholesaler obviously gets the nonrefundable money for nonperformance from my side .Correct me if i am wrong

@Michelle Garcia

I am going through the same situation in Houston market.Once a ppty comes on MLS it is not a deal anymore ,doesnt matter the amount of repairs it needs it will have a ton of offers on it and it will sell for above asking price ( so ridiculous that the purchase doesnot make any sense with rehab) .Wholesalers are promoting bidding wars .They get a deal under contract and there is no First come First serve anymore .They schedule an open showing on a fixed date and you get at least 20-30 investors showing up and it becomes a bidding war.I am currently getting to a point of marketing for my deals myself or wait it out till it becomes the buyers market.Personally i will donot know what to pick.Marketing for deals is expensive (i have tried i when i started out) but waiting for the market to flip into a buyers market is even expensive because of the rate at which money is loosing purchasing power .Confused alltogether.

@Amanda Schneider

i am positive after reading the clause ,the seller got all privilege to terminate the contract and you as buyer donot have any loophole to force them not to terminate.I am not an attorney and this is not legal advice .But this is what i feel after reading the above mentioned paragraph

Any recommendations for an investor friendly CPA/ Tax professional in Houston Texas please.

Will you do business with a wholesaler who wants 5k Ernest money check in her LLC name to lock up the deal.Never done business before with this wholesaler but the deal she brought is a sold flip with 30-35k profit

Some red flags from her side

1.Hard to get hold off using the business number she mentions in her email blast but finally gave her cell # once i got hold of her and  said i want to lock in the deal by doing deposit.

2.Claims there is an open house showing next tuesday but if i want she can cancel the showing if i accept the full wholesale price of 165k and do the 5k earnest money deposit check in her LLC name

3. She says she will not get keys to ppty till tuesday so i cannot see the ppty till tuesday. I have to run numbers based on photos that she send.

4.I asked her to send me the contract for my attorney to review, she sends me the assignment contract between her LLC and ME (1PAGE DOC)but doesnot send me the original contract between her LLC and the SELLER.

I really need an investor friendly tax person /Cpa in Houston .Any recomendations ?I am in a serious situation .Filled for an LLC in state of Texas using Incfile .LLC was created to keep a rental ppty ,but currently the ppty is still under personal name because no lenders would refinance the rental ppty in an llc name .In a nutshell the LLC holds nothing .But here in texas we have to file franchise tax .Complicated topic. I efiled for zero frachise tax .As of my knowledge the rent collected is included(filed) with federal income tax return and LLC is a pass through entity. A few weeks earlier got a TEXAS SALES AND USE TAX PERMIT come in mail.Not sure what it is .Now i got invoice from comptrollers office saying the LLC owes 1000,s of $$ in Back taxes .Cant figure out what on earth is happening .

@Melanie Liu

This issue is happening a lot in texas .I have a relative of mine who went through the same issue.Got into contact with builder jan 2021 .Closing date April 30 2021. Builder was dragging their feet.Didnit even start construction till March .Finally came back and told they need to cancel the contract because of high cost of materials or pay 100k more for the house.Builder had their contract written in their favor that they could cancel the contract so finally ended up paying more. I would advise consult with a realestate attorney and fig out how the contract is written.Does the contract have any clause stating the builder can cancel any time.If so what is the compensation . Else you know the back end ,your attorney will take care of this.

Also keep a documentation for any conversations with the builder.Always do email follow ups Builder wont respond via email,because they donot want proof of what they said but even if the build is talking to you via phone follow back with the builder via email stating AS PER OUR CONVERSATION TODAY VIA PHONE THIS IS WHAT WE AGREED OR.. THIS IS A BREIF FOLLOW UP OF THE PHONE CONVERSATION WE HAD TODAY, in that case you have proof to show what the phone conversation was and that builder didnot respond to your emails.