All Forum Posts by: Roy S.

It should have been in the assignment contract that if the deal didn't close because of the seller or wholesaler, the buyer gets the money back. If the deal doesn't close because of the buyer, then the assignment fee is kept by the wholesaler. This is to make sure the buyer has skin in the game and doesn't flake, but is not hurt if the seller is the one that flakes.

The seller may balk at handing over the assignment fee -- and it's a perfectly reasonable fear, especially for the first deal. In this case, the money should be put into escrow with the title company or a lawyer.

Hope that helps!

Go to the county auditor site where the property is located. Lookup who owns houses nearby. If it's an LLC or trustee, call and see if they want to buy. (I'm talking about LLCs that are rentals - not LLCs that are some other business). Also call any owners of duplexes or 4-families.

You can also try calling the REI club in the area. They may or may not give you the names of some local investors. If they happen to have a computer forum for the locals, look on there as well.

I think there are also some big name gurus who buy all over the country. Contact them and see if they're interested. (Sorry, can't think of any names at the moment)

Good luck!

Isn't this exactly what a basin wrench is for?

http://www.homedepot.com/buy/plumbing/plumbing-tools/brasscraft/basin-wrench-41584.html

You can't tell it from the picture, but the head part swivels and can be 90 degrees to the shaft. This will bring the part you turn down below the sink.

Since you'll probably need extra oomph, turn it with a big ol' pipe wrench, or a pipe to extend the handle for extra leverage. Something'll break. Just hope it's the nut :)

Note: I've never actually used a basin wrench, nor do I even own one. So this is all theory on my part

First off, is the $2 million gross or net? I think with that amount, he'll have to pay some taxes, so if it's gross he won't get the whole $2 million.

Second, I'd encourage him to figure out what he wants. It wouldn't be that hard to put together a stock portfolio that returns 8%. Re-invest 4% to keep up with inflation, and he would still get $80,000/year for the rest of his life without touching the $2 million. Since you say he has "little income", I imagine he may be happy with that and not have the hassles of real estate.

But since you asked about real estate in particular, I wouldn't do the $8 mil loan, at least not in the beginning. Instead I would set aside enough to live on for a couple of years, and then partner up with an experienced invester. Lot of people (even some on this board) would be glad to have him as the money man while they supply the expertise. In a few years when he's a lot more knowledgable about real estate, then he could branch out on his own - or sit back, rake in the money, and continue to let others do the work.

Good luck!

It can mean lots of things, but it doesn't really change what you do as a wholesaler. Just send your marketing piece to the the trustee as listed.

One reason is to hide assets. If an unhonest person is thinking about suing you, and he does a search to see what you own, and you own multiple properties in your own name, his eyes will light up. If it looks like you own just your own house, then you might avoid these nuisance suits. These trusts are more likely to be name "1234 Main St Trust" and have a lawyer as the trustee.

Another reason is to get around bank rules on wholesaling. Instead of doing a double close or needing seasoning or whatever, you can assign the beneficiary of the trust.

There are probably other reasons as well.

Yeah, you're going to meet a lot of tire kickers in this biz. People that want to invest in real estate, but are afraid to pull the trigger (or don't have their ducks in a row to be able to do it).

When you put them on your buyers list, you can ask how many deals they've done before. It'll give you a better idea if they'll actually come through or not.

But the truth is, if it's a deal, you should be able to find a buyer. Just the other day, I saw on this forum that LA is a bad place to invest because you can't find deals at 70%. That guy should jump on your 60% deal. Go to the local REIA meeting. Put an ad in Craigs list. Look at the ads in Craigs list and in the classifieds. Call other wholesalers in the area and offer them money if they produce a buyer. Don't give up.

Good luck!

Congrats! Getting started is the hard part :)

Buying from a wholesaler is a great way to do it. Just remember to do your own due diligence, and don't just take the wholesaler's word for anything - just as if you were buying from anyone else.

Finding a good one requires kissing a lot of frogs. For most, you'll sign up on their list and never hear from them again. Others will bring you a couple but they won't be real deals. But eventually, you'll find a good one. Fortunately, it doesn't take much effort to sign up with them.

Several ways to find them. Go to the local REIA meeting. Call all the bandit signs saying "we buy houses" or "house for sale" (not the realtor's signs). Check Craig's list. Look in the classifieds under investor houses. Google.

Signing up should be free. What they charge isn't really important, as it will be rolled into the price you pay for the house. The deal should be done through a title company or lawyer.

Good luck!

Maybe I'm not understanding something. The buyer will have holding costs and will include that in figuring what he will pay for the property. So even though the wholesaler does not have holding costs, he still needs to include it in figuring what to offer for the property, doesn't he? While I agree it's usually included in the 30% (ie 70% of ARV), it still needs to be considered.

I hesitate to give an example, as these things usually vary from state to state. So with the usual disclaimer that I'm not an attorney:

Partner Approval. Buyer’s obligation to close this transaction is contingent upon approval by Buyer’s partner of the condition of the property, as well as all terms and conditions of this contract. Buyer shall have ______ days after acceptance to approve or waive this contingency.

I know of at least 3 wholesalers who have used it to get out of the first house they put under contract, as their buyers educated them as to why it wasn't a deal. One renogiated, the other two had to walk away. But they did take it to heart and did better in the future.

I've also heard of some unscroupleless people who lock up houses under contract hoping they can find some sucker to buy it, even if it's not a deal. Don't be like this.

Good luck!

I caught the last few minutes while I was flipping channels. After my initial surprise that it was on Spike, and not HGTV or A&E, it felt like all the other flip shows. Made-for-tv drama, not much real info.

The one show I do like is Holmes. Not a flipper, just a contractor. Sometimes I want to throw things at the tv as it seems he thinks money is no object, but overall I like his shows.

There are times when I like "This old House", but usually I find it boring. More informative than the flipping shows though.

And yeah, I caught that last part where the value jumped $50K. Makes me think they really don't know what they're doing, or they took advantage of some newbie buyer.