All Forum Posts by: Javier Osuna

Hi Kesng,

As wholesalers, we market to a small segment of home sellers who because of their particular situation are motivated, (some times desperate) to sell a property at a substantial discount. When people want to sell quickly and below market, its typically because they have a problem that they are hoping you will help them solve. Yes, we are in business to make money, but our primary goal is to offer solutions to that seller and if you are prepared to present them more than one possible solution, even if that means being more creative, you will be able to convert more leads, than if you are sifting and sorting thru motivated leads, looking only for those that have a clear titles. They're out there, but they're certainly not as plentiful. As a fellow-wholesaler, the best advise I could give you, is that you become well-familiarized with alternate ways to structure deals in order to make the deals work in situations where there are title issues such as first or second mortgages, liens, low or no equity deals, etc. Learn subject-to, contract for deed, lease options, etc and the differences between them. Not every deal will be a perfect deal, in fact most of them are not, so its best to not be a one-trick pony. As far as a title company, I would suggest working with one that is investor-friendly, who has staff experienced in things like assignments, double escrows and creative deal structuring. Ask around and don't be discouraged if some title company tries to tell you double closings or assignments are illegal. Just hear them out, hang up and move on to the next one.

Good luck!

I guess what I would do is google up some sample templates of exactly what you want and just work with that. If you have a hard time finding examples of such post cards, I would begin to wonder why there aren't more working with postcards for multifamily and/or apartment buildings. Perhaps its been attempted before? There's gotta be a reason why they're not more popular... If you still think it deserves a try though, I would just take the closest thing I can find on line and just modify it to suit your purposes, using a program like MS Publisher... If it doesn't exist, create it! From there just take that to a print shop or a direct mail service. That's my two cents. For more tips on do-it yourself investor solutions, check out: www.strugglinginvestor.com  Best of lucks!

Hey Jim!

You have no idea how helpful this was. Thanks for being so thorough. I know it was more like three questions wrapped into one...

As far as the 'due on sale' clause is concerned, the reason I mentioned the term "foreclosure" is because, isn't that what the lender would do if they were to call the note due and the party on title is unable to come up with the funds necessary to pay off the note in time? If this is not the case, what recourse would the lender have at their disposal to take back control of the property? Would you recommend putting the property in a trust? (And yes, I do understand you're not an attorney and this is not legal advice.) just an opinion. one that I would still value greatly...

I understand what you're saying about the guarantee deed having more 'bite' as opposed to a quit claim deed. Is a 'guarantee deed' even an option when it comes to purchasing a property 'subject-to' though? If so, is the procedure any different, or is just a mere matter of choice, paperwork and/or price?

Gotcha on the insurance stuff. Its nice to know that in a worse case scenario, you can always take out a new title policy. Thanks for letting me know that this will be easier when working with a guarantee deed.

Thanks a million Jim! Much appreciated. 

Hello gang,

I would like hear what experienced investors (particularly experienced wholesalers) have to say about quit claim deeds.

It is my understanding that quit claim deeds provide a means of offering a motivated seller with an alternate solution in scenarios where is little to no equity.

As wholesaler, I could put the property under contract subject-to the existing mortgage and then turn around and assign that contract to an end-buyer.

My specific questions are:

1) Is there ANY way to avoid triggering the DUE ON SALE clause, or would working with the seller to put the property in a trust the only way to avoid the bank foreclosing on the property?

I know that the likelihood of the lender calling the note due is minimal, nevertheless it IS possible. Its my understanding some lenders actually audit their portfolios periodically to check for changes in the chain of title.

2) How can I avoid cancellation of the title insurance coverage policy when using a quit claim deed? Is there some workaround or legal loophole one can use to keep the policy from going null and void or can a new policy be taken out?

3) what happens at the end of the subject-to purchase term of say for example five years? Would I (or the end buyer I assign my contract to) have to sale the property in hopes that it has appreciated in value and pay off the note? This would of course cause for the property to drop off the original seller’s credit…

I’d appreciate any feedback you can give. thx. J

Hi gang:

I am looking to build a relationship with one or more short sale experts in the San Diego who are interested in leads to flip. There maybe deals where I as a wholesaler may not be able to make the numbers work, either because the property has no equity, or because the seller maybe upside down on it. In some cases, they maybe behind a few payments but have not yet received a notice of default. I'd be delighted to connect with any such investor and possibly bounce some distressed owner leads off to you. I'd appreciate your feedback. thx.

Hello fellow investors:

As a beginning investor, I would like to pick the brain of those who have already been down this path. When it comes to building your investment team, what would you recommend for a novice investor to do as far as building a relationship with an appraiser? As someone who is just starting out, unless you personally know an appraiser as a friend or acquaintance, chances are one is going to have to go out there and some how recruit one off of a peer's referral, or maybe even the phone book; then build that relationship as you work together... So far, I have not seen any topic that discusses this aspect of investing for beginners. What arrangements can be made with people like appraisers, inspectors, realtors, etc as far as negotiating an arrangement on how they will be compensated by their time and expertise? I hear all the time how a lot of wholesalers got started with zero out of pocket and went from living in the back of their truck to amassing a fortune! The way I see it though, a newbie has zero experience in assessing things like property walk-throughs and estimating ARV. Yes, comps help, but what about estimating the value AFTER the repairs? A professional appraiser's time and expertise are required on the first few deals, at least until one develops an eye for these sort of things. A pro's time is valuable and unless there is something I'm missing here, how would I go about convincing an appraiser, inspector or other professional to work with me and invest their time in physically going out to a property, unless I am prepared to pay them upfront? If this is the only way to go, then cool. Once cash starts coming in of course, I don't see this as so much of an issue anymore. In the mean time though, I may just need to get used to the idea that, I may simply have to gather up a sufficient initial investment in order to pay for things appraiser fees, inspector fees, etc out of pocket. The fact that I may have to look at quite a few properties before I close on a deal, makes the idea of having to pay an appraiser each and every time we do a walk-through scares me a little since there is no way to know when I'm going to make back my money when I do my first closing. Can someone out there render any advice? Is this perhaps where having a mentor becomes important? Seriously, I would not mind splitting my profits with someone who'd be willing to help me out on my first few walk-throughs if that is what I have to do... Thanks.

If anyone is interested in a forum where to socialize and network with other investors, there is a monthly meet up in the San Diego Area of which I am proud to be a member. It is called FIBI (which stands for: For Investors, By Investors.)

We meet at the Del Mar Hilton on the first Thursday of every month. Doors open at 6pm. The founders of this meet up, Mr. Darrell Kucan and Imran Clark are experienced and successful investors, always bringing in top-notch guest speakers. There is so much learning and networking to do at this meetup! There are a few minutes of Q&A at the end of each meeting and afterwards the members head out into the bar area in the lobby and network over drinks (optional). I've learned a lot and made some connections there... You might want to consider trying it out. Its actually fun! Though I must let you ahead of time, there is a $20 admission fee which helps pay for the venue... Just a thought, for those of you out there who maybe interested. You will find this and other great RE meet up groups at meet-up.com

Thank you everyone! I suppose going after a deal that has an "exclusive right to sell" clause could have legal reprecausions since the realtor would still feel entitled to their comission, even after the listing has already expired. Ultimately, I guess it would be up to he seller to cut them a check for that realtor's commission out of their proceeds. Bottom line, their property didn't sell which means that now, more than ever, they will be under time pressure to sell which could give me a negotiating edge, even though I understand there are no guarantees. All I'm trying to do is take their headache away. On the other side of the coin though, I would hate to find out I'm being sued or accused of brokering without a license by some scorned realtor. I will need to prioritize getting that CA license at the soonest possible chace. If nothing else, I have now learned off the 180 cooling off period on expired listing with exclusive right to sell. Even though the MLS is a resource, there are other sources for properties out there that will not necessarily involve a realtor. I will still pursue the deal, so long as the listing agreement does not have an exclusivity clause or prvided enough time has passed so as to not get bit in the butt or fall into unethincal practices. When I get a property under contract, would you recomment adding an exclusive right to buy (or market) the property? I'm inclined to say YES since I would be giving the seller an earnest money deposit right? Also, it is my understanding that at least in California, you may buy and sell up to a certain number of properties per month in CA before you need a brokers license. Can someone confirm? If my memory serves me correctly, you need a broker's license if you're doinf five or more a month. Could someone velidate this or correct me if I'm wrong? Please feel free to comment. As far as being a "newbie with no money" well, touché... That maybe the case, however its only if have no real intention or the know-how for creatively helping someone solve their problem that I become a "time waster" Most of us weren't born rich and have to start somewhere.

Wow!! All great responses! Thank you so much for replying everyone. I have a pretty decent understanding within the field of residential real estate, but I must admit that I have been concentrating more on my specific niche, as opposed to real estare itself as an industry. That's a pretty vast subject and I feel I would have been overwhelmed. I've been doing plenty of self-education for nearly a year now, attended a core course in investing recently and have been hanging out at the local REI club for the past three months. I'm not saying I know everything, but I do know what an agent's job is, why they feel the way they do, etc… I merely wanted to know how a more seasoned wholesaler would deal with such a situation and am glad to know my reasoning wasn't that far off. Some times you just need someone with more authority than you to give you "validation" you know... I do understand and agree than having a RE license would be a great plus. This is why getting a realtor's license is among my short term goals. Thing is, I just cannot allow myself the luxury of waiting around until the license comes before I take to the streets. Rather, I just need to know what to avoid. Now I will know how to deal with a situation where a realtor is already in the equation. I will simply need to respect what they do in order to not butt heads with that realtor and head into trouble as a result. I'll just know to keep my head low, not burn my bridges with that seller or agent and to follow up with that seller if and when the home has not sold by the date the listing expires. I can totally see where they're coming from when it comes to wholesalers/investors and can totally understand. I also understand and agree that there simply isn't enough meat on the bone for both of us and even if there were, no agent will split their commission with someone who doesn't have a realtor's license. That's news to me right there, so thank you for that! Now I will know and won't wind up looking like a complete idiot/newbie on the field. I actually have a couple or realtor friends in my circle; I guess I can always pick their brains if need be. Mistakes will be made along the way and I'm ready to face them. I'm just making sure I steer clear of the major ones, so I don't wind up getting sued or something. I'm just at a stage where I simply need to get out there and start knocking on some doors. I've done plenty of analysis-paralysis and have grown tired of inaction! You and only you know when you're truly ready to enter the school of hard knocks and I feel its that time. I will never know what wholesaling can be like in the real world, until I go out there and pop my cherry! In other words, I need to "**** or get off the pot". I know it's a numbers game and I'm prepared to do the hustling and stay persistent until successful. I appreciate the overwhelming response! Thank you again, and if anyone is interested, I would love for us to connect. We're all in this together. Much success in your investing!

Hi all,

I'm on the verge of going out there and beginning my marketing phase on my seach for properties to wholesale and want to make sure I have this question answered before I'm actually faced with this scenario: Suppose I'm screening a seller for motivation and begin to ask questions about the property and the seller tells me he or she is already working with a realtor? Does that mean a deal is not possible? Am I supposed to somehow make it work with this realtor or should I even bother? Would we split the profits somehow or would the realtor and I have to enter into some kind of an agreement on paper? I There's a good chance the realtor will not be wholeseller-friendly, I hear they don't like us. How would a seasoned wholesaler deal with this scenario? Any input would be grately appreciated. Thank you in advance... :)