All Forum Posts by: Joseph Hernandez

@Andrew Still. thanks so much, I appreciate it!

Hi. Can anyone refer an attorney in GA that can write up a sub to contract? Thanks.

@Kelly Crepeault. I did. I made a post here to get critical feedback. It was very helpful when people told me their honest feedback. I learned a lot.

@Jerryll Noorden. I'm a new wholesaler. I just got my first contract, a sub to. So, I asked a few questions here and I was shocked at the replies. I was called a fraud, a scammer, said my $14,000 wholesaling fee is way too high. If necessary, I will go down on my wholesale fee. It's smart to start high and go down. One person told me I should charge 3k-4k. lol, that's about how much I spend in advertising, sometimes more. What these clowns didn't know is that i'm a real estate and mortgage broker for the past 23 yrs. We are trained to know what are fraudulent transactions. Based from their comments, most of these investors have no clue as to the intricacies of a sub to transaction. Furthermore, wholesalers match sellers with buyers, similar to what an agent does. As you know, that's called a dual agency. Furthermore, there's another layer of duties and knowledge that wholesalers must know. So, what agent is going to charge 3k-4k when representing both seller and buyer? lol. I've come to the realization that most negative comments are coming from primarily flippers, next agents. Most are both jealous and have not one iota how time consuming and complex a wholesaling deal can be.

@Peter Mckernan. Yes, the property is in pre-foreclosure status. however, I spoke to the lender this morning, and they are giving the homeowner an extension. The auction date is now May1, so we have much more time. Everything is fine.

@Daniel Patrick Glushko. Yes, the home is move in ready. I started marketing the property yesterday for a few hours. One bite. My VA will spend the rest of the week marketing the property. i'm not giving up and telling the seller anything. I just got a 4 month extension from the seller's lender, so plenty of time. I noticed a lot of BP members here complain of assignment fees. I wonder if they know how much work is involved. Also, I not only have to find sellers willing to sell substantially below FMV, I also have to find a buyer. Anyways, if you drop your buying criteria, perhaps I can find you a good deal. I virtual wholesale. Even though this is my first deal, I've been a real estate and mortgage broker for the past 23 yrs in CA. So, wholesaling is easier for me compared to someone without a real estate background. Thanks for your feedback.

@Dustin Woodley. no. the seller is in the NOS stage of foreclosure, how is he going to do a seller finance? If he had the money to pay his arrears, he would pay it and keep his home.

@Peter Mckernan. Penny Mac is the lender. I don't have more than 10 days to close due to auction date coming soon.  As stated, this is a sub to transaction. Why would there be a need for a hard money loan? Makes no sense. And what is there to review from the lender? All they want is the arrears. Maybe you're not familiar with a sub to? It should be a faster close, right? Buyer is taking over payments. I already have a prelim, which is clean,a payoff demand and the redemption amount.  

@Lucia Rushton. Although this is my first wholesale deal, i'm a licensed real estate and mortgage broker for the past 23 yrs. I understand that many agents think wholesaling fees are too high. however, I disagree. I match sellers with buyers. Similar to a dual listing. Therefore, I should earn a double commission, same as you if you represented both sides. Furthermore, do you have any idea how much work is involved finding a distressed seller? Not only is there more competition than finding a traditional seller or buyer, there is more work involved. Not only do I need to perform somewhat similar tasks as an agent, I need to perform wholesaling duties, which is another layer of tasks. So no, I would be crazy to charge 3k-5k. Just because i'm a newbie, I still must perform the same tasks as an experienced wholesaler. Therefore, I will charge the same. Based off your implied recommendation, you are either jealous of wholesaling fees (like many agents), or you don't know how difficult it is to find a needle in a haystack. If you want higher commissions, become a wholesaler. I didn't mean to offend you, but everything I mentioned is true. Agents shouldn't suggest we charge very low wholesaling fees without knowing everything involved.  

@Joe Davis. Thanks for your reply. You gave me great and honest advice. That's what I need. I get the impression that this is an "iffy" deal. I made a few errors, so I had to edit the property profile. Pls see below. True, there are a few negatives. However, allow me to retort. First, although the city population is very small, Montgomery is only 26 minutes away. In addition, there are two military bases in Montgomery. Second, the 60k investment is equivalent to a 20% down payment. Also, i'm targeting cash buyers, so 60k is substantially lower than 320k. Third, in regards to potential due on sale problems, I watched a video from Pace Morby, and he showed how to handle this issue. I forgot, so I'll have to watch it again. Also, title insurance will handle the issue with prior owner of record. Is it different with wholesale transactions? doesn't seem right. ANyways, I think the benefits of a sub to outweigh the potential negatives. However, since i'm a newbie, I can't give a definitive opinion. Thanks Joe.

UNDER CONTRACT:

-Address: 105 Meadow Ln,, Deatsville, AL 36022

Subdivision, no HOA dues

city population: 1,800; county population: 91,450.

Two military bases nearby. Only minutes to Montgomery.

Subject to deal! No loan or down payment needed. Perfect for an investor that doesn’t like hard money loans. Don’t need to buy property for all cash. No need to pay sky-high interest rates (take over seller’s interest rate-only 4.875%), no need to pay any points, no need to pay outrageous closing costs and wants a fast close.

Type of existing loan: VA

Property status: pre-foreclosure

Value: $320,000

Purch price: $272,000* Buyer to pay seller arrears of $60,000+ $4,000 closing costs + $14,000 wholesaling fee. Total estimated out-of-pocket amount needed: $78,000. Purchase price includes 60k arrears.

*Arrears and closing costs are estimates. I’m waiting for payoff amount from seller’s lender. Final out-of-pocket costs +/- $5,000. A more precise number figure will be given by Jan 17.

Estimated equity: $47,000

Existing rate: 4.875%; 30 yr. fixed

Existing PITI mortgage payment: $1,446 mo.

Rental estimate: $2,250

Property details:

• Single family
• 4 bed/3.5 bath
• Very good condition, minor repairs only
• Yr. built 2006
• sq ft: 2,428 per appraisal report in 2013 when seller purchased property
• Huge lot: 77,417 per appraisal report in 2013 when seller purchased property

Close to shopping.

Cash only. No hard money, private loans or any other type of financing. NO EXCEPTIONS.

I’ll be holding a viewing tentatively next Wed. Jan 17 or Jan 18 time TBD. Will update you on exact date and time on Tuesday. Don’t show up at seller’s property any other day or time. Bring your contractor/inspector because there won’t be another showing as time is of the essence. Call/Text Joseph w’ any questions @ (562) 486-7999.

Non-Refundable EMD of $20,000, NO EXCEPTIONS. Escrow must close by Feb. 5, 2024.

Disclosure: Wholesaler is a CA licensed real estate and mortgage broker with the DRE. Wholesaler is not representing seller or buyer in any way, nor is he utilizing his license to broker above transaction. Above data was taken from public records, appraisal report supplied by seller, when seller purchased the property, verbal information from seller and research from various websites. Buyer to perform due diligence to verify all information pertaining to above stated property.