All Forum Posts by: Julie Groth

Jeff, I have just started using Podio. There is a lot of setup. Have you found templates or apps that manage direct mail, using Podio?

You can do it two ways, write an offer (like a Letter of Intent) and have the seller accept it. Once you know you have a deal, then you can find a buyer. HOWEVER, you have not formally tied up the property with just an LOI.

Or, the Contract for Purchase is in itself an offer. At the bottom of the Contract for Purchase is ..."this offer expires at 12/17,15 at 5:00 pm".

I call mine "Purchase and Sale Agreement" or PA for short.

AND...I just had a pretty good idea. If you have a buyer you trust (the one you will assign to), then use their contract. Have your attorney review it to protect you, but that way you get a 'free' contract AND then you know that the contract that you are assigning is something your buyer is ok with (since he gave it to you).

Do an online search for the standard PA used by agents in your state. Read it about a dozen times. The lingo and terms, what they mean and standard time frames is something that you need to be very familiar with.

The $500 will be credited toward the sale on the HUD statement, for the buyer. Which is not you since you assigned it. Your buyer should reimburse you for this-in addition to the assignment fee.

This is the overview. Seriously, have an attorney draft this or review a draft of a contract that you choose to use. An attorney I know suggests that investors use the standard Residential Purchase Agreement that agents use. Probably available online. The details of the language is state specific and necessary to protect you. I'm just giving a brief rundown here.

1. Put it under contract with seller. I put $500 down with language that says something to effect that if buyer (me) can't buy, then that is full liquidated damages. Meaning, seller can't sue for specific performance or get any more than that.

2. To be held at title company of buyers choice. I put no time provision for me to drop off this deposit. Since many deals are off-market, there is no real estate broker.

3. I put in a 30 day (business days, excluding holidays) due diligence period. If sellers want to ask for less, then they can. Allow yourself plenty of time.

4. Somewhere in the document, you should have assignment language. It's like "...contract may be assigned...blah blah about enuring to benefit of heirs, successors, assigns..." Don't make a big deal of this. It's standard stuff and I've never had a seller ask me about it. Just because you know you plan to assign it, doesn't mean they know (or care).

Wholesaling doesn't mean that you HAVE to assign it. I don't do it that way because I don't want my buyers to see how much money I'm making. There are many transactional funding  companies who will loan you the money, once you have a buyer under contract. 

Chris, you do a a great job of tracking your mail campaigns. What software do you use? Or do  you use Excel?

I know that it is common to have PM charge a % of rents. However, I don't quite get that logic. If I have a duplex with $3500 per month rent in high end 'hood and one at $2000 per month someplace else...well, what's the difference to the manager. In some ways, the higher end property is easier to manage.

Do you all pay your property managers a flat fee? Pros and cons?

Thanks!

Thanks Manolo!

Sounds great. Would you mind sharing the exact language you use, from your contract. So, I don't have to reinvent the wheel. :)

Thanks!

Do any of you use some type of bonus system with your contractors? $x for early completion. Or, a penalty system for not completing on time?

Thanks!

Does anyone have a checklist they could share, concerning all the documents needed to close: from the seller, insurance, get to title co, etc. I'm creating my own, as I close deals, but 'why reinvent the wheel?'

Thank you!!

Can you set a different ring tone for the GV?