All Forum Posts by: Joseph Milano

Thanks for your insight, I have no issue refunding them part of their security deposit towards rent if thats is what they wanted, it would honestly be easier for me. I just wanted to be sure doing something like this wouldn't cause any problems in the future that I am not seeing right now.

I started keeping two months security deposit instead of last months rent so we are better protected from from damages or unpaid rent in case a tenant trashes the place during their first year and the cost exceeds one months wort of rent. To the best of my knowledge you can only use last months rent for the last months rent.

 Thanks Colleen that is very helpful, the past few leases I had renewed I used an addendum for any changes such as rent or other terms, and attached the original lease to that for reference. I would feel comfortable enough noting the return in security deposit on the addendum so it is documented and signed.

One of my tenants is coming up on their first lease renewal, so if they decide to stay, it will be the start of their second year. I currently hold 2 months of security deposit for them. 

I understand that after the second year you can only hold 1 month of the current rent as security, but I am curious how other landlords or property managers in Pennsylvania handle returning the other half? Do you return the money as a check as soon as they sign the lease, refund the last months rent for the following term, something else?

I appreciate any guidance anyone can provide. 

Is there any books on sales anyone  enjoyed or thought was practical related to wholesaling? I am still getting my feet wet and currently working on my first deal. I am also continuing to work on estimating rehabs, finding comps and ARVs of property’s, but I would like to learn more about marketing and sales strategies as that’s the subject I’m the least knowledge on. 

I have read books on the process, but I am more interested if anyone has read anything more related to cold calling or talking to sellers as it relates to wholesaling that they think would be helpful for someone without any sales background. Thanks for the help!

For any flippers or contractors who work in south jersey or nearby, what neighborhoods are you buying or working in? 

I currently like places like Glassboro, Swedesboro and West Deptford for buy and holds since rental rates are so high and they seems to be more development going on there, but wanted to get an idea of where cash buyers are looking for wholesale deals. 

 If you are using the agent on both ends and they are collecting 5-6% from the sale, and you still need to assign to an investor that can make a profit plus whatever assignment fee you would make, thats taking a lot of juice out of the deal. I am assuming this would only work because they are now collecting a larger percentage of the deal and are more willing to try and negotiate a much lower price point? 

I am currently researching different marketing strategies in generating leads for wholesaling, and utilizing some of my current relationships with realtors seems like a great place to start since it doesn't require any upfront out of pocket cost, and I have worked with them on deals in the past.

That being said, how should you go about paying them any finder fees for off market deals? Should it be apart of the assignment contract and paid out at closing? A separate contract all together? 

Also, what is anyones experience finding deals this way, do you lean heavily on this as a strategy or something that only produces a deal or so every couple months? 

Hey Jamie,

I am also trying to navigate my way through wholesaling and putting all the pieces together before I start marketing to sellers. I am sure others with more experience will have different advice, but "The Wholesaling Blueprint" by Luke Weber was a good read and it more or less gives you a basic step by step approach while explaining a lot of the strategies and pitfalls.

I would start there, and while you are reading and researching, start developing a plan. Pick a market you are familiar with or close to and find out what houses are selling for. Become familiar with how much it cost to rehab a kitchen or bathroom and repair common items. Learn how to find comps and the ARV of a distressed home. Search for sales agreements and assignment contracts that you understand and can explain to a seller.

There's a lot to learn but people will help if you meet them halfway and show some effort.