All Forum Posts by: Brandon Wu

Hello BP!

I've been off for a month hiatus getting my wholesaling business framework laid. I have most of eveyrthing finalized and now I am going through a couple questions, if anyone could help it would be greatly appreciated!

1. When you were just starting out, how did you get Realtors to pull comps for you for all of your potential wholesale deals?

2. When you were just starting out, how did you get GC/Rehabbers/etc. to estimate rehab costs for you for all of your potential wholesale deals?

3. When you purchase a house in Canada, is an "Offer to Purchase" the only contract you will need to purchase a house (or have right to purchase).

4. Is a title company, closing attorney, and real estate lawyer the same thing?

Thank you very much!! When I have all my answers and processes compiled, I intent to share them with all the new wholesalers to contribute back.

Cheers,

Brandon

Thanks Tj Hines, I wil get on the search for an investor friendly title company right away.

Regarding the second paragraph, when you say "have buyer come in fund the deal and sign paperwork before the seller gets there", does that mean that I can do the B-C deal before the A-B is signed off? I was under the impression that in order for the B-C deal to be underway, I must have the ability to pass on the deed/title of the property to C. (If A-B did not take place yet, I wouldnt have the ability to do so).

Hope to hear back soon, thanks.

Couldn't the end buyer simply wait until the contract is void (say 3 weeks) and then go to the seller directly?

From what I have read, wholesale option to purchase contracts are typically very short term (>3 weeks).

Thanks Mike G, that actually helps me alot. I know its not an exhaustive list, however it has given me an idea of the type of things to look out for.

Cheers!

Thank you very much! This helped clear up alot of my confusion, im now starting to see how it all comes together. With the double close, or any wholesale deal for that matter, what protects you from the end buyer going around you after you show them the property?

I see 2 big issues coming up with either wholesaling process:

1.) Double close: if you close the A-B deal with transactional funding, how do you ensure that the B-C deal goes through? And must the buyer pay 100% cash, or only a cash downpayment to avoid seasoning issues?

2.) Assignment of contract/sale of land trust to end buyer: if you show the property to your end buyer and your assignment fee, how do you protect yourself from the end buyer going around you and purchasing from the original seller (thereby foregoing your assignment fee)? Can you assign the contract to an end buyer without disclosing your assignment fee?

Thanks again for your input thus far, hope to hear back soon!

Hi Everyone,

I am currently researching the process of wholesaling and am a little confused about the process. You will see me post a couple topics, however this one will be specifically regarding the title companies.

Once you submit an offer to purchase and have the property under contract, Stephani's blog (http://www.biggerpockets.com/renewsblog/2010/02/11/wholesaling-real-estate-step-by-step/) states two major parts:

1.) "Once you have an executed contract, you will want to get a copy to your title company ASAP so they can begin title work."

What is the "title work" that needs to be started? And can this be done by a government registry agent? (they also do vehicle registration, land title searches, etc.)

2.) "On the day of closing the seller and the end buyer will show up to sign all of the documents, and the end buyer will bring funds for the purchase of the property, plus your assignment fee. Once everything has been signed and the money has been collected for the purchase, the title company will cut you a check for your fee."

With this I am very confused as to the process, sorry if I am not specific enough. But if my assignment fee is $10000, and the property is contracted initially for $50000, the cash flow would be:

End buyer brings 60k -> Title company gets 60k -> Original seller gets 50k -> Leftover 10k is sent to me?

Sorry if I seem all over the place, I am! I am very confused as to the involvement of title companies (and who they even are) with the wholesale deal.

Thanks in advance BP nation (note: this is in Canada, not sure if regulations differ)

Thats what I was thinking as well. Do you have any good techniques for finding out if the HOA is stable and well managed?

P.s: C'mon bigger pockets genuises and gurus, whats your take on the Pros & Cons of Fixing and Flipping different property types?!

Thanks for your input Phil Z. Have you dealt with either one of those properties, and if so, which is your preference?

Mehran Kamari Thank you for the wise and encouraging words, I appreciate the amount of positive feedback and support there is here. And that's my ideology as well haha: "Tomorrow you will wish you have started today". I will definitely look into the book on flipping houses by Brandon, I've read his other numerous blogs and videos scattered across the internet and they have always been very insightful.

Brandon Turner Haha I was wondering if you would notice, you have a divine capability of monitoring your forum. Kudos to you. Hopefully I will have a photo of myself up there soon.

Hope all of you have the best of luck,

Brandon

Thanks for sharing your experience Gil, I specifically liked the last point where you said: "the major pro for me was...it was easy to get accurate comps on the exact same properties and so i knew where i stood on how good of a deal it was."

Searching around the market, I see this right now, and IMO its a double-edged sword. It does help estimate ARV/real value and provide for peace of mind however on the other hand it does 2 things:

1. Others can just easily judge the ARV/real value as well causing less bargains to be available, and if bargains are to be had, they are picked up very quickly.

2. Your resale value is highly dependent on the neighbouring units and pricing, so it may be harder to sell at a higher price than the other units (a price thats high enough to make the fix & flip justifiable)

That being said, I agree with you Gil. For a newbie investor (such as myself), a condo could provide as a "peace-of-mind" investment where instead of financial gain, you would gain significant hands-on experience that can catapult you onto a successful flip for the future. Better than bargaining on a small house, becoming bankrupt, and quitting!

Looking forward to more insight fellow BiggerPockets members, so far this has been fantastic!

Brandon