All Forum Posts by: Jesse Kozazcki

@Jesse Kozazcki I think the mistake is believing anything that the “gurus” are saying. Also, if you are just making up definitions for things then it makes it really difficult to be on the same page as anyone else when discussing real estate.

What you just described is a wholesale deal. With little profit to your end buyer but a wholesale deal nonetheless. You are doing a straightup assignment, but not leaving any room for an investor to profit. A wholetail is a combination of the concepts of wholesale and retail. Wholesale+Retail= wholetail. The definition of that is NOT selling a wholesale (assignment) deal at a retail price or to a retail buyer which is what you are trying to claim wholetailing is. It also means that your end buyer has to be an owner occupant because any investor is going to be looking for a profit whereas an owner occupant is not. However an owner occupant is most likely going to be purchasing the property using some kind of bank financing. Guess what banks wont do? Finance a buyer trying to buy a property from someone who doesnt own it.

At the end of the day if you can find an investor that wants to buy a property from you with very little profit in it for them then thats what you will do. Good luck to you!

@Jesse Kozazcki If the price the sellers want is too high for an investor to make a return then the property isnt a deal. I think there is a little confusion on the terminology here. Wholetailing is when a wholesaler buys a property, does a few minor projects and then resells to a buyer (investor) who is going to tackle the entire rehab. A great example would be a hoarder house that a wholesaler buys, cleans out and then lists on the MLS for investors to buy and actually rehab.

I think that if the sellers want a price thats close to retail then its not a deal. Your only option would be to buy it yourself, make the minor improvements you say the property needs to make it financeable and then sell it. But it sounds like the price they want doesnt leave room for this to be profitable. So its probably time to move on to the next deal, since this isnt one.

@Jesse Kozazcki

I think you might be confusing some terminology. I don't think you need to limit yourself to a buyer who is looking to move in.

Wholetailing typically means that you are listing the property on the MLS rather than wholesaling it off-market to an investor from your buyers list or network. It doesn't mean that the buyer has to be owner-occ.

Also, it generally means that you are closing on the property yourself and then reselling it, although some investors do list properties on the MLS that they haven't closed on, with the intention of a concurrent closing.

Correct me if I'm wrong, but based on your comment about setting the expectation that it may take a while to find a buyer, I'm thinking that you are looking to assign your interest. First of all, if this is the case, bravo for being transparent with the seller rather than leading them to believe that you are the cash buyer until the last minute. What I don't get is why you think you need to find an owner-occ buyer? If you got the property under contract at a discount, you should be able to assign it to an investor who wants to spruce it up and sell it or hold it as a rental.

Anyway, @Jessica Stevenson already gave you the best advice; which is to go the meeting and talk to buyers and other wholesalers about ways to get it done.

Happy investing,

Troy

@Jesse Kozazcki come to the REIA meeting this Wednesday in Manchester. There is a buy/sell segment with lots of buyers in the room

The problem you are going to face with hard or private lenders is that you plan to live there. The Dodd/Frank law will not allow a non licensed mortgage originator to loan to a homeowner.

@Jesse Kozazcki How much skin are you willing to come up with in this game? What are you initially offering into this deal? 

Hard money lenders will  definitely finance fix and flips, but not if you plan to live in the property.