All Forum Posts by: John Barrows

In the state of Washington, once a property is under contract (all negotiations cease) when it comes to the tenants! If the seller signs new leases without the buyers approval then the buyer has the right to terminate the transaction, get their EM back and possibly sue for costs incurred while under contract agreement! Seller has to abide by the agreements and has to keep buyer aware of all issues while under contract!

Seller should always have "rent rolls", copies of utilities, expenses and of course a schedule "C". You can also look the schedule "E"  and operating expenses. If you own a rental you will have all of theses items for tax purposes!

Russell Brazil, you need to "read" the question! The AGENT REPRESENTS THE SELLER! She has a duty to BRING ALL OFFERS TO THE SELLER, PERIOD! This agent in question is not acting as an agent just picking up a buyer to make offers as you have suggested in your misguided answer. When an agent represents the seller (it is NOT their position) to TURN DOWN any potential offer! The fact that she did turn down the request to make an offer ("AS THE SELLERS AGENT") has undermine her fiduciary duties to the seller! If I were the buyer I would DEMAND a written letter on the spot that is guiding the agent to such conclusion that the seller wouldn't accept this offer! I would then have another agent write the offer to present to the agent and seller and I would have documented my conversation with the LISTING AGENT! 

Obedience: The agent is required to act, following and abiding all lawful instructions, subject to the principal's continuous control, but not exceeding the scope of the authority conferred by the principal. That is, do not make decisions for the principal.

I suggest to you, that you need to speak to an attorney or your broker prior to making wrong and misguided advice to the open public! Go read what FIDUCIARY means..

Mr. Crawford,

It is time to rid yourself of your SELF SERVING BROKER! "It is (BY LAW) the job of the Broker or agent to present all offers"! The fact the the Broker made a decision for the seller is a form of REDLINING and/or DIRECTING a transaction... I would submit that if you go to the licensing department they will have another term for your Broker and it might be (a fine or suspended) license. 

The Brokers fiduciary duty is to present all offers and NOT MAKE decisions based on price for the seller, UNLESS the seller has written a letter to the broker (PRIOR TO REFUSAL OF YOUR OFFER) that the seller will not look at any offer below this XYZ price! 

You may want to speak to an attorney on this matter OR go to another agent and write the offer... Depends how your state laws are in your state. 

Jay Hinrichs, Thank you for your insight and comments! I appreciate your views on what is "really needed" to make a dent in the direct marketing programs.

I have tested and now have found a true way to have sellers and buyers respond to my marketing. I have found by testing my idea's and continued marketing efforts, that my response rates rose quickly. I have devised a marketing program of post cards that are now giving me at least 2-3 calls or e-mails per week. Some responses (in certain area's) are giving back higher returns as well! Test, test, test until you find what works then, and only then, do you move to a profitable marketing program worth investing your money! I also, put ads on my car and it's really producing the numbers. I love it when I come out of a store or someone is standing at my car or stops me on the road, at a stop sign to get more information or become a customer. That was only a $100 and has already paid dividends! 

I have "FREE" ads that can and do generate 20-50 calls per week of nothing but buyers. I've had to buy another phone and designate one phone for just the ads....calls..

John Thedford, I am not calling WHOLESALERS FRAUDS! I am one myself. I am calling out the "WHOLESALE INFORMATION MARKETERS" ie.. sellers of books, templates, letters, marketing plans, frauds! They capture a person's vulnerabilities then exploit the buyers motivations of getting educated about a process called "wholesaling"! That is the problem....! Most of the information is inaccurate and misleading. It's called drip sales starting at $1.00 (to suck you in) then in (SMALL LETTERING) automatically withdrawing funds ($20 to $100) each week or each month depending on the way the sellers of the information has created their scheme's...... If a person is unaware and does not check their checking accounts, they can get an UGLY SURPRISE of $100's if not $1000 of dollars withdrawn without their knowledge! Just be aware of these scheme's and sales techniques.

As for Washington state, there is no "AS IS" contracts because several court cases here in Washington state have corrected the statement of "AS IS" in buying a property. In your mind a property is purchased (as is) but, if it ends up in court then you will find (here in Washington) that "AS IS" is a term used for a personal item or something within the property like ( dishwasher or broken windows or carpets and most of the time appliances) are "AS IS". It's impossible to see within the walls or under a structure so to say "AS IS" in Washington state, could be costly in the future.

As for a broker (as myself) selling or buying, I have to put a commission disbursement out so the whole world can see my earnings (IRS) 1099. I can not give anyone a spiff, a referral fee, a bird dog fee over $50.00 I believe (last time I looked). There are ways to buy here in Washington that allow unlicensed people to collect a fee. One would need to seek the advice of an Attorney on that matter. 

Hi David,

I have been buying and flipping for a while here in King county as well as Pierce County. The advise your receiving seems very "on-spot" One thing you may be missing is the Foreclosure and Auction markets that can give you tremendous returns if your LOOKING in the right area's. We find properties all the time that are needing investors..... So, the properties are here in Western Washington, you just need to find people who work the markets and the sellers...

pro-forma is a view at a possible future price and not what you should pay today. Like buying a business, would you pay for future sales or what sales are today? Now, with that said, let's make the case. If you rare buying a multi family unit with very low rents but, with very few issues (no maintenance issues), the roof has been replaced etc.... then that might be a buying opportunity especially if the rents can be raised to MEET THE MARKET rents. 

Let's say your exact property one block away is renting for $1000.00 per month and yours is renting for $750.00 per month, that is instant equity that a good manager can recover for instant income. Also, if the owner is paying for utilities, that can give you INSTANT INCOME by using the RUBS SYSTEM (RUBS)= Ratio Utilities Billing System, which is legal in most any state.. Do your home work and (YOU GET THE REWARDS)......

California is different then other states but, if it were me I would hold up closing until the issues are dealt with. If not, then when the title is in your name, you will inherit the problems. When code enforcement is involve, beware....

Managing Broker for over 22 years and I myself do buy and sell wholesale properties. Depending on where you do your real estate business (state), you HAVE TO MAKE FULL DISCLOSURE! If you are a licensed agent or broker you have to tell the sellers what the property MAY BE WORTH in the future and YOUR BUYING THIS PROPERTY (AS IS) OPENLY KNOWING THAT YOU WILL MAKE A PROFIT IN THE FUTURE! Real estate people better have a clause that the seller has the right to seek an attorney's advice as well..... To think that your going to buy a property without disclosures is a breach to your fiduciary duties and WILL LAND YOU IN COURT! Just a word to the wise... Talk to your brokers before just buying a property from a DESPERATE SELLER.....