All Forum Posts by: Account Closed

@Jay Hinrichs - If I am understanding you correctly, you're suggesting that you must purchase and own a property outright first before you sell the property/contract to a 3rd party cash buyer, and if you don't do it in that order its therefore illegal. In this case that would be considered a fix and flip without the fix, and traditional wholesaling is dead/illegal? 

Just trying to fully understand. Thank you for your help in advance!

@Michael Noland This is great advice. I want to be certain that I am operating within legal grounds and make sure that all parties involved have a positive experience. I am setting up an appointment with my lawyer to review all paper work and concepts. Thanks Michael.

@Brian Van Pelt Thanks Brian!

Hi John - I will be operating within the legal and ethical parameters of the wholesaling practice, and have the full intent to close upon each property. Within the legal parameters of wholesaling, there are cases where a deal falls out of escrow due to the inability to find a cash buyer or a cash buyer backing out at the closing table. My question was/is how to handle those situations and what to expect.

Hey BP - I have been working on setting up my wholesaling business for the past several months now and I have a list(s) of sellers and cash buyers that I am about to start marketing to. Before I do so, I want to make sure that I am prepared for the worst case scenario where I get a property under contract, but I am unable to find a cash buyer to invest. What are the legal ramifications if a deal falls out of escrow and are there clauses that I can put into my agreements to protect myself if this does happen? I have heard a lot different takes on this and wanted to know the actual penalties.

I have made sure to do my due diligence so this scenario doesn't happen, but wanting to make sure that I have all my bases covered. Thanks in advance!

Very helpful, Benjamin. Thank you!

Thanks Caleb!

If you're new to flipping/BRRRRing what are the steps to securing a HML without the a background in these areas? Ex: a fully mapped out business case of the property, or your background in other investment fields be a resource that they can rely on?

Jesse, this is a HUGE help. Thank you for posting. 

Thank you Don. Great information. 

In your opinion, can the hard money lender be substituted with a traditional lender? Or would using a traditional lender make it harder to refinance after the renovations?