All Forum Posts by: Brandon Kargol

Okay so i recently went through a situation similar to this. A major question I have for you is this... Does the seller have 100% equity in the property to do a 100% seller financed deal or are there any banks involved? Also, I don't know your state laws but I can only assume that you cannot close on a property with back taxes because the title will have a lien. So your end buyer is willing to dish out 15K in back taxes BEFORE the deal even closes? Also, does your 24K sale price include that 15K in back taxes? or is your buyer actually paying 39K out the door? I ask all these questions because a lot of this situation doesn't make sense to me. If you can answer those questions then maybe we can help you out!

Using realtors in your wholesaling business is very effective. They can help in a few ways.

1. They can email you expired listings from the MLS. These are typically very motivated sellers and most of their properties are in great condition!

2. They can again use the MLS to help you pull comparable sales on a property. This is very helpful!

What can you offer them in return?

Any lead that doesn't work for you can be referred to your realtor friend! It's free marketing for them. Hope this helps! 

My end buyers need to be either cash buyers or have access to quick cash via open lines of credit or hard money. Otherwise I wouldn't deal with an end buyer going with FHA or conventional financing. I don't want to deal with banks at all.

If you find yourself in that circumstance though as Mark described then you are basically at the mercy of the FHA. Ive no experience with dealing with the FHA but I can only assume that you could call and try to haggle with them. They are probably going to want at the very least several repair cost estimates and home appraisals for licensed professionals.

 It could be this simple, but probably not. Remember, the seller has an agreement with the realtor to pay them a certain percentage for commission. You as the wholesaler cannot interrupt that agreement. 

    Whats your reason for wanting to purchase this property? Why is this an attractive lead for you? If it's because you like the property then you're doing this for the wrong reasons. Fall in love with the deal not the property. 

Here's the way I see it. 

220K ARV means that your offer can't be anymore then the upper 140,000's (and the seller still needs to pay the commission!) to pull about a 5k profit. This is assuming that the property is in NO need of repair what so ever. If the seller is motivated to make a deal like this happen then the odds are that the seller wouldn't be listing the property with a realtor. As listing with a realtor generally takes 3-6 months to sell and close on the property. Sellers who list with realtors are most likely looking for market value on their property. Also, the realtor is going to want to protect their commission, and when they see a lower offer like that then it's not gonna go well. I'm not trying to be negative about this deal, or to say that it can't be done. I want to make sure you're going in the right direction! No need in wasting time on a deal that won't happen.

Are you not doing a double closing or assignment on these properties? Cause you should be. Which means you never actually owned the property meaning you should never be paying for a title insurance. 

If you have a good deal on your hands then it might be worth jumping through the hoops to make it happen. Do you have any details of the deal so we can help you decide whether its worth pursing or not? ARV, repair costs, and asking price would be good info so we can help.

"Agreement Subject to Partners Approval" (my favorite)

"Agreement Subject to an Acceptable Appraisal By Buyer"

"In the Event of Buyers Default the Deposit Shall be the Sole Remedy"

The deal has been postponed due to a family emergency on the sellers behalf. Negations continue in a few days.

Exactly, that's how I leave all my dead leads. "Well Mr/Mrs Seller I think we are looking for two different things here. Good luck with selling your property and if you ever change you mind down the road feel free to give me a call." 

  Most leads I get are from people who are just poking around trying to see what their property is worth. They are looking for a "make me sell" price which isn't what wholesalers do. When I ask why they want to sell and I get this response "Oh I don't know. You were the one who sent me the letter." Then I say "Okay? So you're not selling the house?" Then they say "I am just trying to see what your offer is." 

This is how I know they are not motivated and I don't waste my time. NEXT LEAD!

I hope you have one serious deal on your hands, otherwise I my opinion I would avoid any realtor deals like the plague. Couple reasons…

1. You never get to talk to the seller directly. The realtor is the middle man between you two. So any offers you make or any counter offers that come your way are bounced between the realtor. This becomes more time consuming.

2. You will probably get asked to show a verification of funds to purchase the property. 

3. You won't be able to get nearly as good of a deal because there will be a 6% commission to the realtor. 

4. You will be using the realtors contract to purchase the property so you will not have the ability to insert your own clauses.

I am assuming that you are trying to wholesale this property?