All Forum Posts by: Jacob Michaels

@Nicolas Falbo Your title company/attorney will do that for you. If you don't have one yet, get some recommendations from other wholesalers, give them a call and have a brief chat and let them know "so and so big wholesaler" recommended them to you. 

Send your signed purchase contract with you and the seller to the title co and ask them to run the title on it. They'll usually do it for you for free, because they'll get paid on the closing.

Key point: in your original purchase contract with the seller, always have the language that "BUYER PAYS ALL CLOSING COSTS". That means you, or in this case, your buyer after you assign the deal will pay for the closing costs. 

Make sure they know that upfront, which is pretty standard with wholesale deals. 

You as the wholesaler won't pay for any costs. You just make the middle spread between your contract purchase price with the seller and your assignment contract price with the buyer. Very clean. The title co will make sure you get paid at closing. 

Just stay in good communication with all parties, incl title co, throughout the process

@Larmon Cummings Jr 

FYI I always state in my contracts that the BUYER PAYS ALL CLOSING COSTS. It's one of the things my buyers know up front, and it helps close the deal faster with sellers when they know they don't have to pay that. 

@Larmon Cummings Jr 

Also, if you want to close the deal bad enough, you could hop on a plane to meet with the seller now and get the deal done. 

She would be incredibly impressed with your chutzpah. 

@Larmon Cummings Jr This is one of the many reasons why I'm a big proponent of investing in other people's education courses. A lot of people on BP are against learning from "gurus", which seem to mean anyone who has an education course that they sell. 

As long as the guru is actually actively in the business, and their course is highly recommended and reasonably priced, then paying the small amount to learn properly makes you a lot of money in the long run. 

I have no vested interests in this, but I heartily recommend learning from Sean Terry's Flip2Freedom course. Very thorough and you'd learn a TON from someone who does hundreds of wholesale deals every year. 

Another way to do it is to wholesale it by negotiating as much as possible, then tell them you're not sure you can make it work, but you do work with a lot of other investors who might be interested. Put the property under an option agreement (giving you the option to buy, but not requirement, at the arrangement you negotiate) and then market for a buyer at a price that's slightly higher for a bigger down payment. The difference in price/down payment is your wholesale fee. 

I forgot to say, make sure you go over these numbers with the sellers. All of your costs as a landlord and show how you'll lose money. Don't just show it to them, but if possible have them even re-write the costs down and tally them up themselves. I've had great success getting sellers to give me deals that work when I did this.

@Brandon Duff Besides offering less than the asked for $175k, Another option is to negotiate an interest-only arrangement, where you only pay the 2% annual interest every month ($3400/yr), with a balloon of 10-20 years (the longer the better). This should help your cashflow situation. 

Not sure of your California-specific laws and I believe Dodd-Frank comes into play if you do too many of these...., but after you get the deal another possible option is to resell it via owner financing in what's called a "wrap" mortgage. Something like $10k down, 8% interest @ $185k. It's called a wrap because the arrangement you are selling is wrapping around the arrangement you used to buy. So you'd pay $5k down to the current seller and agree to some arrangement with 2%. Then you'd market for a buyer at $10k down and 8% interest at a higher price. You'd pocket the down payment difference, earn the interest spread (2% - 8%) and eventually get paid off at a higher amount which you can then use to pay off your original seller balance. 

This is a very lucrative exit strategy that a lot of investors use with these kinds of deals. Because there aren't many quality seller financed houses on the market, these are really attractive to owner-occupant buyers who can't get traditional financing but still want to buy a house. Big market for this. 

@Tyson Hartley When looking for a mentor, you should actively seek out active investors in the area, introduce yourself and what you're looking to learn, and find out how YOU CAN HELP THEM. That's the key. How you can help the mentor, or anybody else. That's providing value to others, and the key to your future success. 

When you learn how to provide consistent value to others, you will get all the help you ever need, and build long-term relationships along the way

@Raymond Chan Can you PM me with which banks were offering close to 5% and $100k minimum? I'd be interested in researching them myself. 

Thanks

@Patty Tran I'm a wholesaler in Dallas. PM me with what you are looking for, your budget, repair budget, exit plan, etc. I can only work with cash buyers, or similar fast closing ability. The benefit is you get off-market, below market pricing.