All Forum Posts by: Jeffrey Butler

Some aspects of the contract which seem like I'm able to cancel the contract?;

Assignor hereby assigns the deposit under the Contract of Şale to the Assignee. However, in the event the Down Payment hereunder is returned to Assignee, this provision shall be deemed null and void and of no further force and effect.

Assignee may not assign this Agreement without Assignor's prior written consent, except to a new entity to be formed, which consent may be withheld for any reason in the Assignor's discretion.

If Assignor defaults under this Agreement and such default is not cured within five (5) days after notice, Assignee shall have the right to terminate this Agreement. Assignee's sole remedy for a default by Assignor hereunder shall be strictly limited to the return of the Down Payment. In no event may Assignee file a notice of pendency against the Premises. Additionally, in the event of default by Assignor, the return of the down payment is hereby personally guaranteed by a member of the Assignor.

@Chris Mooney I'm going to look through the end buyer contract right now and see what it says. I'm assuming that was not added to the contract bc I asked my lawyer if I can back out now and he said he wasn't sure, he'd need to look into it. 

Yes, I required a 1% non-refundable EMD which is a little less than $5k (next time I will make it $10k) which is in escrow with my atty.

I'm reaching out to my cash buyers now but I also don't want to get into a situation where my other cash buyers want to move forward then I can't... anyway, gotta do what I gotta do at this point I guess.

I REALLY don't want to lose this contract and I'm going to do EVERYTHING I can to get it closed!

Thanks so much!

Hey Peter, 

Funny, I'm doing the exact opposite of you - starting out wholesaling with a plan to move into fix & flips. 

Definitely give a listen to Wholesaling Inc podcast. It's the BEST thing I've found for wholesaling help. They also have coaching programs but the podcast has been amazing for learning the ins and outs... 

Seeing that you've been doing fix & flips for 10 years, I would venture to say you do not NEED to hire a coach for this business unless you're really focused on scaling quickly. It's pretty straight forward especially if you're familiar with RE.

You just need to learn the best way to find deals in your market (which I assume you're already doing since you're flipping) whether through driving to find them, targeting pre-foreclosures, distressed houses, tax liens, divorce, probate, etc.

Subscribing to a property app like propstream which is about $100/mo, helps immensely as a huge time saver and gives a ton of useful information. You can also use a website called List Source and purchase lists. Then you can send postcards, call/texting using a skip tracing service, or door knocking potential sellers. You're going to have to spend marketing money to find these potential sellers - I've found driving around looking for the deals is the best way to start. I've learned a ton about my market this way and generally there's a lot less competition because these deals are not so easy to locate for a lot of wholesalers.  

Then find buyers (most will recommend you do this first). You can do this on propstream by searching properties that have sold for cash in the area you're trying to wholesale in then skip trace their information to contact them, searching facebook/craigslist RE groups for posts that say CASH BUYER, networking with other wholesalers in the area to see if they'll joint venture to piggy back their cash buyer list, drive around and look for other flipped properties in the area and tracking down the investors' info...

While I'm not familiar with Colorado laws and such, I definitely recommend getting an attorney to draft up your contracts and help you with the closings. My atty has been extremely helpful with different things that I never would have thought about.

Hope this was helpful. I'm by no means an expert, I've got my second deal under contract now and hoping to close next week but I've failed A LOT and learned A LOT from these failures haha

Best of luck and let me know if I can help with anything!

Hi everyone, 

I have a property under contract in NY state. It's under contract with the seller and under contract with the cash buyer. I am assigning the contract to the cash buyer. 

The buyer has been delaying the process and given every excuse under the sun on why we don't have a closing date yet. Last minute he switched his attorney and now he's saying he needs another survey done. Recently I learned from other investors and wholesalers in the area that this buyer is notorious for getting the property under contract then letting the contract expire and going directly to the seller afterwards to buy directly from them or wholesale it themselves. He is also known for not paying contractors. Doesn't have a good reputation in the local RE community.

I have spoken with my attorney and he says there might be a way to put a quick time limit on the transaction to force the buyer to close within the next week or so before the contract expires. There's about 2 weeks until it expires and I'm getting extremely nervous. This is my first deal and I NEED IT TO GO THROUGH. I'm trying to see if there's a way to back out of the deal and assign it to another buyer asap. 

If anyone has any ideas or feedback, I would greatly appreciate it! Thank you!

@Peter Sosnow

@Peter Sosnow It would be best to discount the property based on 4 units, but the seller isn't coming down much on the property. I might not pursue this property any longer, especially if I can't convert to 5 units.

@Account Closed Thanks for the great info and adding to the questions I need to ask about :)

@Pat L. That's one thing I didn't calculate into the property analysis, updated taxes.. Is there anyway of estimating this number after updating or will this be based off the assessment afterwards?

@Eric Bassett I think the only thing making them illegal, is that the property is registered as a 4 family. But I will ask the seller and code enforcement these questions as well. I just don't want to get the seller in trouble by asking questions about a property that is illegal to code enforcement.

Hello fellow BPers!

It took me about 5 years to finally make the decision to invest in real estate and now that I feel I'm late to the show, I want to jump in full speed ahead.

I could probably fill this post with thousands of questions and comments about next steps, and how-to's.. But I'll stick to a few most straight forward questions I have about a legal 4-plex property I'm interested in purchasing. 

I'm interested in buying this property as MY FIRST using a private loan with $0 down with rehab included in the loan.

Basically the property is currently a legal 4-plex with 2 illegal apartments in the ground floor both having their own exits. There are 5 electric meters (4 for tenants and 1 for landlord). The landlord's family members are currently staying in the 2 small illegal units. I am thinking about combining them into 1 additional legal unit to make 5 in total.

I am wondering; 

1) how easy/quick/expensive would it be to legally change the property into a 5 unit building? It is located in a "Central Commercial" zoned location where most other properties are either MF or commercial. Property is located in Westchester County, NY.

2) the property is currently not the best deal with 4 units rented out but adding the 5th unit makes it a MUCH better deal. Is this something recommended to do to "create" a deal on a property that would rather be 6% cap rate and $5K cash flow/yr, but when adding the 5th legal unit makes it 9-10% cap and $20k cash flow/yr?

I understand all municipalities are different but I am just trying to gauge how difficult a task it would be and if it would cost an arm and a leg to do.

Any info is appreciated! THANK YOU