All Forum Posts by: Maurice George

Filing foreclosure is about $1500 and takes a few months.

A lawsuit starts at $5,000 and goes up by the hour.    But the time if finally got settled, the attorney would likely get more money than I would.

If I file foreclosure on the old owner, she will probably ignore it... she has nothing to lose.

But filing foreclosure on the new owners will get them to take action contacting the title company and their Title Insurance company.  If they fail to take action, I get the house back.  Either way I win going this route.

There are definitely situations that are just odd and yield a very nice profit:  a seller may offer you a super low price, just to get rid of the headache... or maybe you found a house in a flip area where rehabbers will pay top dollar...  or maybe you have an out of state investor who thinks $60k for a house is a bargain when it's really only worth 20k.  Yes, things like this happen. However, I'd say $45k is not the average fee a typical wholesaler would make.  You'd have to be targeting flip areas or investors who don't know the market.  I'd say those are not the norm, though.  

We average $5-10k/deal.  Maybe we are doing something wrong.  Lol 

@John Thedford  think you have been a little harsh on @Angie A. Yes she has done something unethical, however she was sold a dream and given bad information on what to do to reach it.  Yes she should have considered how the memorandum would get released when she recorded it. More importantly she should have dealt with it faster. However I still put much of the blame on the people teaching this stuff. 

What idiot told her "And this is something I was told was required to do"?   Also Angie was told she could charge a fee for the release!   Who is teaching this stuff?

Angie made a mistake and came to us for help how to rectify it. Her mistake was one of ignorance (negligence) not of malice. The smart people here, (John is certainly in that group) should first strive to educate, then if appropriate reprimand.

Regarding how Angie should proceed, clearly her attorney should address this ASAP. However if it were me I would write up a release, this release would reference the original recorded document with liber and folio, have it notarized and record it in the land records. 

Angie you should realize that what you have done is a very serious issue. This is certainly a Tort (something you can get sued for) and might possibly be criminal. It sounds like you are hanging around and or listening to the wrong people. 

I hope, Angie, you learn from this. There are many lessons here. One which is not obvious is that another wholesaler cannot legally take your deal. It is called "interference with a contract" Another lesson is; you need to KNOW you deal is so good it will easily quickly resell or you need to be in a position to close on the deal yourself.

Regarding how I would handle it if I were the VICTIM, I would move forward with any sale or marketing efforts. This cloud will get dealt with eventually and if it temporarily blocks a sale, that only increases the damages she could claim. At the same time I would talk to TREC and/or to an attorney to file suit against Angie.

Thanks @John Thedford and @Wayne Brooks for the support! I'm new. This is my first one and in no way was I trying to be malicious or hurt the seller. There were other wholesalers trying to go around me and talking to her so I was trying to protect the deal I had worked on. I'm sure you've made mistakes at one point and reached out to others for help. That's what I'm doing here.  And this is something I was told was required to do...after the fact, I'm finding out it's not...No need to be jerks, just a way to guide me would be great. I'm willing to release it at no cost to her, I've heard other wholesalers say I should charge a fee to release it, or have the new buyer compensate me to release it, but I'm not looking to be that guy... I'm just looking for form to sign and get her on her way... Again, I did it because someone said it was just another step in the process..now I know.. but thanks anyway.

These are people who are retired and downsized from a larger property. They are not wealthy and don't want to do up keep on their property or pay someone to do it for them.  they have family in the area of Springfield and like the idea of being close to the lake. They are on a fixed income and/or work part-time in the area (i.e. Silver Dollar City). The duplexes are modest 3 bed/2/bath/2 car garage and are 1248 sqft.  One Story with fenced yards and 1/3 mile from Walmart. The vacation condos and duplexes are a different set up. 

@Maurice George

Perhaps I was not clear. 

The Jenk's house in desirable area cost 180K in 2007. The value today is 210K   Rent for the property went from 1200 to 1500 over that time period. This house sold in February for 198K  Nice house, nice area but smaller returns due to taxes and insurance.   I did live in the property for a period of time before selling.

The Glenpool house cost 79K  in 2015 and rent went from 850 to 995 over 5 years.  This house is now on the market listed at 125K. 

The Glenpool is the last house I own in the Tulsa area. I am 1031 the houses in OK and replacing them with Duplexes in the Branson area. Duplexes cost 100K (X5) 500K and they have long term renters paying 600-700 per door. 

With value added to them (new roofs, painting  and repairs ) totaling 8700.00 They now appraise at 128K.

The point of the comment was that Owasso, Bixby, Jenks and some parts of BA do not offer the return on investment that you find in Sand Springs, Sapulpa, Glenpool and West or North Tulsa. 

I bought quality homes needing work. Added value with repairs grew the rent over time and used the 1031 to save on taxes. My renters stayed an average of 4 years and I never lost a month's rent.  

It really depends on your appetite for risk and your long term REI plans.

We looked at MSU area ( wife teaches there now) but the college has new housing options and the tenant turnover is an issue.

The Branson duplexes are retirees who have rental histories ranging from 3 years to 12.  No children and 1 pet limit.

I think i'll stick with this route.