All Forum Posts by: Marty True

No the deals I'm referring to are not locked up by agents, they are locked up by wholesalers. The agents are getting on the wholesalers' "cash buyers lists" so that they can add an additional $5k-$20k to it and resend to their own cash buyers list. So the lists, as I mentioned in my OP, are daisy chained with fees on top of fees on top of fees and there's no way of knowing who the original wholesaler is that actually locked up the deal.

And no, I am not required to submit offers through them, but sometimes I don't know who the person is that actually has it under contract so if I want the property, I have to offer through the agent.

Thanks @John Thedford while I appreciate your devotion to pointing out how wholesaling (in the trending structure) is illegal and everyone should get a real estate license, I'm not sure your reply addressed my point at all - in that agents/brokers (the licensed ones) are adding fees on top of fees, in a "daisy chain" sort of way, that essentially pushes the "wholesale" deals to near ARV, leaving no "meat on the bone" for those of us that actually do add value through improvements, etc.

As a "cash buyer" I am (or was) on many wholesalers' buyers lists. There is a fairly recent trend where real estate agents/brokers are getting on the "re-wholesale" bandwagon and basically adding on an additional $5k-$30k to the original wholesaler's contract+assignment price.

So a $100k property (which already includes the contracted wholesaler's fee) comes in on one list as $106k and then on another list as $114k and yet another list for $120k (or more). And because they are licensed real estate agents/brokers, they can legally advertise these off-market deals and basically put as much on top of the "connection" that they got it from, as they want.

This basically is making wholesalers worth a lot less when it comes to ranking where our deal flow comes from. If wholesalers are going to "get into bed" with so many other wholesalers and/or real estate agents and the property gets tagged with 2, 3 or 4 levels of "fees" then why waste time with wholesalers as a viable source of "good deals"?

I literally got a deal this morning, from a wholesaler, for $90k on a house. Then about 3 hours later, I got the same property emailed to me, by a real estate broker (that also wholesales) for $105k.

I'm sorry but as a licensed real estate agent/broker, unless you are somehow adding value to the deal, how are you putting a $15k fee on a deal that you will do absolutely nothing for??

I believe this is contributing heavily to why it is so hard to find good or great deals here in Florida and specifically in South Florida.

I'd love to hear everyone's thoughts and opinions on this...

More info needed @Josh Malenfant - what type of property is it? Is the property vacant or cash-flowing? And what is the former relationship between the deceased owner of the property and the churches? In other words, why do two churches have ownership stakes in the property?

I highly recommend @Malgorzata Sadowska - she works in most of South Florida and has a lot of knowledge in the WPB area - and she is an investor-friendly realtor.

http://www.miamiherald.com/news/business/article13...

There is a process in which you can do Air B&B. I recommend finding a realtor that has been through the process to get approval, to work with (message me if you want a referral). First, the building itself has to be approved for short-term and then each individual unit has to apply for an individual approval. If you're buying in a building that is approved, the process for individual approval is not expensive but it is a process that can be difficult if you haven't done one yet.

I echo what @Jose Alonso said - you can find duplexes for under $200k in Miami but they are not only going to be in C/D neighborhoods but typically in need of pretty extensive rehab as well.

Hi @Luis Rodriguez I know this is a bit of an old thread but I was wondering if you ever pulled the trigger on moving down here to Miami Beach. I am currently acquiring in Miami Beach - studios and 1BRs, for both flipping and rentals. Let me know if I can help at all if you're still interested in Miami Beach.

@Joshua Wilson Trust me, I understand how you're feeling. I do think that you need to try and come up with more than the $5k to work with however, if you are really wanting to do something right now and that is all you have to play with, then the one strategy I would suggest is to find an off-market deal with a highly motivated seller and no mortgage on the property. If you are willing to put in the work that it takes to find those kind of deals, you could get a deal done for what you have to work with now.

I actually have a specific and very targeted sub-strategy for just those kind of deals - "Your Price Our Terms" (we even built a website just for this strategy). Some deals are fantastic deals, not because you get it for a "steal" of a price but because you got it on amazing terms.

Find a $100k property with a motivated seller; with no mortgage; and offer them their asking price. Tell them you'll pay their asking price and that they won't have any realtor fees to pay, there won't be any repairs needed, they won't have to deal with appraisals, etc. Offer 5% down payment and seller financing for 24 months, at 7%. Then let him know that he will actually make more than his asking price because of the interest. You will cash them out after 24 months with a refi (assuming you have or can create enough equity for a 70-75% LTV loan in 2 years time).

Hope this helps! There are deals out there for any situation, just remember... the easier you need it to be, the harder you'll need to work for it.

Hi @Joshua Wilson I'll offer a few things here... First congrats on your chosen path of getting your RE license, that is not a simple task. I would say to continue educating yourself in real estate investing, through BP and through other great books (stay away from guru courses though!).

As far as your two strategies, I would call both of those "dreams" or "goals", not so much "strategies". However, if it is your dream to acquire an apartment building and reside in the entire top floor of it, then don't just call it a "lofty" dream, make it your burning desire! If that is what you want, then write it down as your major life purpose and wake up every day with the intention of working on and towards that goal!

In the meantime, as an effort towards that main goal... Start accumulating more cash from your very respectable salary and build on that $5k so that you can get into a property that will provide enough cash-flow or appreciation to build into something larger down the road.

While it isn't impossible to buy a property with $5k, it is not an easy "ante" for what you are hoping for.

Are you a veteran? Or are you located in a rural area of Tampa that USDA would be an option? The answers to those two questions could possibly put you in a zero down situation... Or if you qualify for FHA, you could find something as low as 3% down.

In regards to your statement "I need a lender who works with new investors" - why? It sounds like you are the poster child for conventional financing... Great job, great credit, etc. You don't need a lender that works with "new investors" you just need to find a great deal and then work up the best financing option that is available to you as "Joe Q. Homebuyer". It sounds like the $5k down payment money is your only obstacle so like I said, either save more money, borrow from your $20k credit" or find a 0-3% loan.