All Forum Posts by: Mike Nelson

Hi Sabrina,

Yeah I guess I was assuming a double close for your wholesale deals. That is what I would most likely be doing . Therefore, have heard of reissue rates for the title insurance at a discount as to no pay a full premium twice in one day. Do you use "net to seller" terms in your contracts with end buyers? I want to keep mine simple. For example, I get a HUD home under contract, and have found a buyer. I will be paying all the closing costs for transaction A ( HUD to me) and then close with end Buyer B (me to end buyer/investor) and use a net to seller clause in the contract terms to basically collect my finders fee. Does anyone use "net to seller" contracts?

Thank you so much Sabrina this is excellent.  Kinda what I was gearing towards myself.  Does your title company offer a reissue rate on the title insurance?  

Do you make them use your title company? and if so, do they offer some kind of reissue rate on the title insurance?

do you collect it personally? or require that they deposit with escrow agent?

When wholesaling an REO for example, when you find an end buyer that wants the property, I have been told not to sign anything until you "feel the money". In other words, dont sign until I have a deposit in escrow. Is this typically how it works? I would think most buyers would feel awkward signing a contract and handing over a deposit without the sellers signature. Our standard Florida state contract gives the buyer 3 days to make the deposit, or the contract is void. Obviously this is all negotiable, but what seems to be the standard?

I forgot to enclose the deposit check in my HUD contract package (DOH!) Airhead mistake, had everything put in the envelope, come back home to find out the check is still on my desk. Does HUD reject completely if you forget the deposit, or will they give you a 2nd chance to send it in? I have had the chance to make corrections on previous HUD homes when things were missing, or errors were made on the contract.

Has anyone ever known of a situation where a reroof was done without a permit and when busted by code enforcement, forced to tear off and redo completely?

Is anyone still wholesaling HUD homes that could provide some insight?

When paying yourself a salary under S Corp status, what are the guidelines for reporting your salary?  I understand you have to file a 941 every quarter, but if you are the sole owner and individual of an S Corp and say you are a wholesaler, can you wait until December to just pay yourself an annual Salary of say $40,000 when the business made $100k for the whole year?  Are you forced to pay yourself sooner? For example if you made $15000 in the first quarter?  What If I want to keep that money in the Business account until later in the year for possible unforeseen expenses?  I cant seem to find any Info on required salary acceptance.  

anyone? wholesalers?