All Forum Posts by: John Napier

A wholesaler is not selling a contract, as if they have not interest in the property, if they are the Buyer on the contract, under VA law. They are transferring a legal right in the property for consideration. I agree that someone who has no interest in the property, or a legal right to sell it for the owner (Broker Agreement/Commission Agreement), cannot market it for sale without being a VA Broker. I know these laws vary widely among different states, but the common law right of equitable title in Virginia goes back a long way and I suspect it is not undone by this updated definition in the DPOR regulations in Virginia--even if that is what their intent was in trying to change this definition.

This could bring litigation, as a lot of new laws do, and then the courts may clarify. But from my reading, this does not prohibit wholesalers who do things the right way in VA (i.e. have the property properly under contract before trying to assign it) from continuing to do business.

If the intent was to cut off wholesalers from doing more than two deals a year, I do not think this accomplishes that end. When someone is a buyer on a contract they have equitable title, which means they have an interest in the property (in VA). It does keep the daisy chain method from being utilized, but that was never legal in VA--I expect that this law is making that explicitly clear. If someone is under contract as a Buyer, they should be able to wholesale the deal, since they have an interest in the property as the Buyer. If they are not a party to the contract, they cannot market the deal without a license (and never could, under VA law, though that does not mean they do not try--but they should not be getting paid for something they have no interest in by a closing company).

Thanks, @Patti Robertson for the mention. 

@Lee Bailey feel free to direct message me and we can discuss your situation to see if we are able to help. 

@Mark Yap I think it would be worth reaching out to @Patti Robertson about management needs. She has a management company and is an incredible resource.

@Patti Robertson Thank you for your post!  We are just on the edge of the overlay zone in VB, luckily.

Douglas, this is fantastic.  Great job to you and your team.  The Ocean View area is amazing.  Did you do the renovations in-house?  Or did you contract out the work to other companies?  We are local RE investors and would love to connect.

Warmly

@Allan Smith thank you so much for your response!  Right now we are trying to streamline 1) Lead generation and 2) Property Management.  Our portfolio is not big enough, yet, to begin using systems like Appfolio.  As we grow this year, we want to have systems in place that allow for sustainable and healthy growth rather than building the plane as we fly it.  We will have to begin delving into more software this year, most likely.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

We bought and are currently working on this fun multi-family deal a couple blocks from the oceanfront in Virginia Beach. We are working closely with a company that renovates and manages short-term rentals who we love and trust.

What made you interested in investing in this type of deal?

Virginia Beach is an amazing market and is was a deal we couldn't pass up. We love multi-family buy and holds and love the Virginia Beach/ Hampton Roads market.

How did you find this deal and how did you negotiate it?

I connected with the owner a couple months prior simply through friendship, and he called me up and said he wanted to sell and asked if we wanted to buy. Life is all about relationships.

How did you finance this deal?

Private Financing

What was the outcome?

We are in the midst of remodeling and transitioning it into a Short-Term Rental.

Lessons learned? Challenges?

Always have a good network of people in your corner. Be kind towards everyone you meet, mainly because it is the right thing to do, but secondarily because you never know what those friendships can hold. Always have a network of contractors that you trust and love. Have good relationships with the city.

Good afternoon from Virginia

We are in the process of systematizing our portfolio as we are building and growing. In doing so, we are in the process of developing a good system of go-to templates and processes in order to streamline. 1) What have been some must-have cogs as a part of your deal-flow machine (for my excel lovers). A good proforma is priceless, market comps, T12 from sellers, underwriting, etc. Anything else?; 2) If anyone has any templates they absolutely love, we would be extremely grateful to have those shared with us as we begin to create/evolve our own based upon our companies' needs. Thank you in advance for your responses!

Blessings