All Forum Posts by: Lauren B.

I’ve bought two flips from wholesalers. One guy ... shady AF. The other guy, one of the most ethical and nicest investors I’ve met who’s given me a good chunk of his time and advice as an experienced investor.

I just had a convo with a young lady who was trying to wholesale mls properties for over list price by listing them on Facebook marketplace. The LA received a copy of her attempt. It made me realize she’s probably not even closed on any properties and has really no idea ... I’m surprised (should I be?) how many people are trying to wholesale mls properties.

is 98k gross revenue? It almost certainly is gross not net and it sounds like he's selling a business not just real estate. You need to know why the deal has fallen though 3 times. I strongly suspect this is priced as a business and not real estate, meaning it won't appraise for an FHA loan. That's what I see as your biggest hurdle. Do you have a realtor?

Something else to consider. If the Airbnb algorithm changes and you can’t Airbnb as successfully as it was previously (over $100/night per unit at 66% occupancy) can you make the mortgage? Can you sell it as real estate without the business or will you lose money on this deal?

as a previous person posted... lots of savvy investors here. If it’s on the market and others have passed, you should find out why. 

I should add it was an in-house loan with a credit union. 

I quit claimed from llc to myself sub2 existing and refinanced same day. Didn’t purchase from my llc. I had about $110k  built in equity so refi with cash out was no problem.  

Quit claimed to myself for same price and then took out cash to rehab and plan to live there two years so no big cap gains

@Guy Noel I sort of did this. Bought in llc with private cash to get a distressed property quickly and refinanced into my own name with a bank two months later with cash out refi.

@Nicho Pruett might be worth checking with a lawyer. I may be wrong but I thought there was a time period after which they have lost their chance to foreclose.

Who is the gun protecting anyone from? You from your tenants ? Why have you rented to these tenants? I’m a woman with two C class properties .. ones probably a C- ish. Maybe D+. A nice house still finds decent working class tenants who won’t shoot me.

Real estate is a risky business. If I was scared all the time I wouldn’t take these kinds of risks buying in c/d neighborhoods. Or buying RE at all.

I don’t buy in neighborhoods where I’m afraid. I don’t want to rent to these kinds of people.

@Charlie MacPherson

If this wholesaler was your client, an investor, who came to you and said “I want to make on offer on this home. To me, it’s only worth $223k”. Would you tell your client to get lost because he’s screwing the seller? Or would you put in your clients offer and expect the seller to make their own informed decisions? (Isn’t this exactly why the seller hires a realtor? For professional advise?)

I do agree! There are some wholesalers who’s actions are egregious.

I just think there are more egregious things happening in real estate than individuals making low offers to homeowners without a realtor. Maybe I’m biased, Because i find my own leads and make my own offers with what a property is “worth to me” (without making representations about a retail market / or what other individuals or investors are likely to offer).

Lying or fraud is reprehensible. Telling them they “won’t get a better offer elsewhere” is crossing a line for me. But making a lowball offer isn’t morally offensive in my opinion. If you’ve listed anything on Craigslist recently, you’ll know this is par for the course.

And a distressed situation doesn’t make any difference in morals or ethics.

Also! It’s fantastic you were able to help your clients get the full value of their property. I applaud you.

I have two under 30k rentals.

Property #1 - 3/1 - paid $25k put in $12k.

Rent 800

Built in ‘95. It had a new roof in 2017 and new hvac in ‘17 both free to homeowner (habitat house). Hml financed. Arv 80k

Property #2 - 2/1 - paid $18k put in 10k.

Rent $650

Built in 87. Baseboard heat. House on slab. I put a new roof on for $3k. Hml financed. ARV $80k

Both are C class properties also located in a town where the neighborhood varies street to street. I’ll buy more here as I can. Most are mill houses built in the 30s-50s. I prefer newer (no lead paint / foundation issues / knob and tube etc ).