All Forum Posts by: Account Closed

I just got a list today from my city with a few thousand records for $1. It is a list of all homes issued citations by the neighborhood protection board. It could be a fire job, condemned property, abandoned, nuisance, overgrown lot, etc. Got the property and owners address. Call your city or county because they do have a record and it should be public knowledge. We have investors here that buy burn jobs.

Chris -

I really appreciate you taking the time to reply and offer some advice. Out of curiosity do you use your own forms or a TREC contract? I understand it makes the closing process much easier especially if hard money is involved. Others I have talked to also said you could use your own forms but the normal TREC contract works best. I was a member of the local REI club before and liked the information so I plan on joining again for 2010.

I am still looking for comments or suggestions from any others reading my original post. Thanks in advance.

I've studied wholesaling for a while and put it off to the side for about three years. I've gained a lot of knowledge and now want to pursue it full-time but I have some specific questions.

I will use a TREC contract in stead of these Option contracts - I know this works best in Texas and believe in the KISS approach. When you fill out with seller what do you put in the Earnest Money area - leave it blank or put to be determined? I don't know if the buying investor has a preference.

I want to use the Termination Option for 30 days or longer? Your thoughts and experience?

For Special Provisions I only plan to include -
1. Buyer may sell, assign or transfer all interests and rights in this contract - I will also make the seller fully aware of my intentions
2. Possibly a 10 business day satisfactory inspection clause
I don't want a bunch of "out" clauses - your thoughts?

I will use an Assignment of Contract I put together from finding many others on the net:
Do you indicate the buyer will deposit X amount non-refundable earnest money deposit and your assignment fee or do you just indicate your assignment fee?

I also plan to use a Non-Disclosure / Non-Compete to try and prevent behind my back deals. I just don't know if that would hinder me - requiring interested investors to sign this document before revealing the property address, etc. - your thoughts?

I do not want double closes so I will just assign my contracts so:
Do you get your fee, turn over the paperwork to the investor and go on to the next deal or do you have to babysit and make sure it closes and get your fee when the transaction is done? I've heard it done both ways. Your Thoughts?

I plan on starting with FSBO's or working with agents on MLS and will be avoided all REO's and Short Sales as I know the processes are much more involved and time consuming to wholesale - LLC's, Land Trust, EM Deposit, proof of funds, etc.

I would really appreciate some responses from the Texas Wholesalers on their process and other investors as well. Thanks.

Property taxes only. The owner is motivated to sell but after further investigation, I discovered the owner owes about fours years worth of property taxes. It does not appear that a lien has been filed against the property. Thinking of doing a contract "subject to" all past due taxes being paid in full.

Looking for suggestions for the best way to put a property under contract with back taxes owed so if I flip the contract everyone is covered. Thoughts or Ideas? Just trying to figure this process out. Thanks.

Posted in another forum on this site with only moderator response so trying it here. I am in Houston and have questions about wholesaling and assigning contracts:

Do you suggest using the option period on a standard TREC 20-7 to control the contract/property and flip it to an investor/rehabber or using an Exclusive Option To Buy Agreement that I would develop? Seller would be aware I was flipping contract with no intention of buying. Do not want to deposit earnest money. If I cannot flip, I want out. Which form do you think owner would be more receptable to signing? Which do you use? Timeframe for option period?

Recommend any investor friendly lenders/mortgage brokers and title companies in Houston?

DTA - "Don't Trust Anyone" so I have developed an Assignment Agreement with fee included and Non-Disclosure Agreement. All Parties sign Assigment Agreement. Rehabber/Investing and I sign Non-Disclosure. My CYA policies. Good to use? Thoughts?

I want to form an LLC for this business. Most people say get feet wet and then form business entity. Want LLC for advertising, business cards, etc. instead of following the herd and saying "I Buy Houses". Is it a good business structure for wholesaling?

I have limited funds and it seems everyone has a hand out offering boot camps, courses, etc for big fees. I have been reading and studying forums, many articles, etc. Just trying to see what is working in the wholesaling area for investors in Texas and I am ready to take the plunge - tired of paralysis of analysis. Thanks for any comments, advice and answers to my questions.

James

I am a novice RE Investor and have several questions about this area of investing. Many people interchange Bird-dogging and Wholesaling. I have studied a great deal and am ready to begin my career in this field. I want to Wholesale properties - put them under contract and "flip" to true end-buyers/rehabbers. In the beginning, due to cash, I do not want to truely purchase the properties unless absolutely necessary and then I have probably made a bad deal if I cannot flip the contract. I understand the numbers game before putting a property under contract. I will build reserves and then look into rehabbing and rental. I want to file an LLC for protection, advertising and credibility. I understand the marketing aspects - buyers lists, ads, business cards, bird dogs, networking, etc.

Questions:

Without a lawyer where can I obtain or purchase Non-Disclosure, Non-Compete and Master Fee Agreements?

I will use the standard (Texas) TREC 20-7 contract but I definitely want to have an exit strategy out of the contract. Do you recommend the "Option Period" for this strategy, maybe for 30 days, with closing 30 - 45 days after?

If not using the option period, how and where on the contract do you indicate how long you have control of the property? I will always be up-front with the seller about assigning the contract. Earnest money will be deposited with a title company.

How do you indicate payment on contract - all cash since flipping to an investor/rehabber? They may be financing through hard money...

Starting out do you recommend finding one or more realtors that works with investors to run comps, etc? If so, any realtor recommendations? Any suggestions for compensation, trade-outs to the realtor.

Any title companies and lenders you recommend that work with investors in Houston?

Sorry for the length of the thread but I would like any and all answers, comments and advice from other investors. Everyone has to start somewhere and I know I will always be learning about this industry. I believe I am off to a good start and this will work as I will not fail. I will not work for someone else again. Thanks for reading. If you would like to network or exchange ideas, please email me.

James