All Forum Posts by: Krishonda Johnson

@Krishonda Johnson in general I'm not a huge fan of this practice because it's one of the many reasons why wholesalers get a bad rep.  Nobody intends on using it on the front end of the deal, but then they realize they can't find a buyer or the buyer won't pay what they are asking and pretty quickly it turns into an easy way out of the deal leaving the homeowner in a worse spot than before potentially.  

To answer your question though, if you are finding an off market deal you can really structure it any way that you want.  I would just encourage you or anyone else to be honest with the homeowner about what you are trying to do.  Best of luck.

@Krishonda Johnson people will accept cash at any point in the process, you just never want to offer cash if you can't actually self fund the deal (ie cash or a Heloc, etc.) and then hold up closing by dealing with the bank when your offer was a cash offer. 

@Krishonda Johnson I'm confused about what you are asking.  If you have a contract and then you have an end buyer you shouldn't need to worry about the financing part.  Either you are going to assign the deal to them and the end buyer closes or you can double close it using a Hard Money Lender that does transactional funding.  Can you clarify what else you are asking?

Hi @Krishonda Johnson, often times property owners (especially those of investment properties) will shift those assets into an LLC (Limited Liability Company) to protect themselves, as well as their names from being contacted. A lot of tax delinquent properties are owned by out of state or non owner-occupied owners, making it a little difficult to contact them. If there is a mailing address listed, you could try to do a direct mail marketing campaign saying who you are and what you do. Brandon Turner and others have tips for this type of lead generating/marketing. I hope this helps.

@Krishonda Johnson You wont know what they owe on their mortgage until you talk to them. Step one is find someone who actually wants to sell. Step two is to find out the important info and analyze the deal. Start with step one. Then move on to step two.

@Krishonda Johnson Once you find a good title company use them for all your deals. I wouldnt suggest paying the closing costs out of your fee—unless you are adding those costs to your fee. You shouldnt lose money if you are providing good deals to investors that want them. Closing costs here in my area average around $2500-$3000. Thats a lot to take out of a wholesale fee. Just my 2 cents