All Forum Posts by: Joshua H

Thanks Jonathan... It's definitely not a clear buy. As mentioned.. could go either way. I will use the Option but I'm curious if I need to put all of the terms of the monthly payments, etc.

I normally just put something like this:

3. Exercise of Option: To exercise the option, Buyer should give written notice to the Seller as soon as possible during the term of the Option Agreement. At that time, Buyer and Seller will enter into a Purchase and Sales Agreement outlining the terms set forth in this agreement. Seller agrees to sell the property subject to the current mortgage loan on the property to the Buyer upon fulfillment of this agreement.

Probably doesn't protect me really well, but if someone wants to screw me on an option deal, it's likely not worth the hassle anyway.

Just asking about how you would word it in the option. Not saying I'm a big shot, but the seller has already agreed to do it this way, and it's not a property I want to risk getting stuck with.

The area the property is in here has been fickle as of late and this could go either way...

This property could go either way... it's nice and price is right, but it's been listed forever.

I will be putting an option on it and the seller has zero problems with this. Not looking for advice on another method, just looking for an answer to my question.

I can't sell this to my buyer on lease/option in my state either...

I'm locking up a property that I will be buying subject to. I did not want to sign a PA as I do not want to make payments on this until a buyer is lined up.

Looking for some feedback on how I normally should be doing this. What clause would you put in the option agreement that talks about the purchase being made subject to the existing mortgage when I exercise my option?

Thanks!

If you're buying subject to and owner financing in turn to the end buyer (not a lease option), how would the insurance be structured?

Erik and Curt. I'm in agreement that backing out of contracts is a bad way to do business and can sour a relationship and a create a bad reputation fast.

If the numbers make sense on the deal, I know a couple of guys that handle hard money loans, and it seems if something fell through with a buyer, I could go the hard money route until a buyer was found.

The hard money lenders I know base it all on the property (no financials, credit, etc.)... as long as there is a survey, the property is under contract, they will loan up to 70% ARV. Any deal that warrants a wholesale will be under the 70% mark.

Great info! Now, if you tie up a contract for lets say $10... Can you ask the buyer for more to make sure he/she's serious?

Granted, I have no problems with doing $1,000, but if someone will lock it up for less, why not.

Also, what about escape clauses. I've seen people talking about a partner clause and inspection clause. If you pull out, do you get the earnest money back?

Does anyone know if wholesaling in TX is legal or where can I research this.

Assuming it is, I have a decent investor's list... I just need the state specific contracts. Any ideas on where to find these?

Thanks Big E!

Any tips on where to find the best contracts? Also, I have seen some people claim they never put down more than $50-$100 in earnest money. With sellers actually let this fly?

One last questions... what do you feel is the best and most accurate way to lookup comps and get a ARV of a property?

I'm new to real estate investing completely. I've been an insurance agent for almost 7 years and I'm in TX. I'd like to build some cashflow to get into some other investment strategies. I believe wholesaling makes sense as being self-employed, it's that much harder to get a traditional loan in our current economic climate.

I'm building a website with a capture form for both potential investors and those wanting to sell their homes. I intend to do some online advertising and start to build my network of investors. I currently have a few clients that are investors which will help a little.

I assume driving and looking for FSBO signs is a good way to find properties, as well as CL, BP, and eBay. However, it seems to me that building the investor list should be my primary goal.

Any tips or feedback would be appreciated. I'm fairly business-savvy, so I'm not going to over-analyze this process. I plan to get a house under contract within the next 2 weeks.

I'm also curious where I might find the required paperwork and what the exact flow of the process is in relation to involving the title company, when to make a deposit, etc.

I also noticed someone posting that they typically put $500 to $1,000 down in earnest money but it doesn't come out of pocket. An explanation here would be appreciated.

Thanks in advance and sorry for the length of my first post.