All Forum Posts by: Phil B.

@Ben Edgington off topic but I totally read your subject as Cow Hole Sale. Lol. Took me a second. I think I need more coffee.

@Vivana Hernanes a lot of questions. First, is your contract even assignable? Next, in the contract that YOU are now bound to, you should have an EMD deadline date, usually 3 days from the effective date (contract date) here in FL. If you place that $1000 EMD then back out, you could lose that money. If you do not make that $1000 EMD you agreed to on the contract when it was accepted, you have not fulfilled your obligation per the contract which if I was the seller, I'd run. Whoever the agent is that accepted your offer is not doing a very good job for his or her client. The objective is to close. If you have no intention on closing, you should let the agent know. Using someone else's deposit on a contract you signed could get very ugly quickly, especially if you cannot assign it in time. I'd tell you to talk to your broker but you're not licensed, and as stated above, could get you in very hot water and prevent you from ever getting a license in the future. When you assign a contract, a fully legit and secured contract, you are "selling" your rights under that contract to someone else and that person would then be bound to all the stipulations and contingencies of the contract you signed. I would imagine any buyer with any experience will analyze the contract carefully since they will be bound to it and if it's not fully executable or void or voidable, they'd run away. The agent should not have accepted your offer unless there was an EMD provision in the contract along WITH proof of funds. Are you sure you have an accepted offer on contract?

@Adam Lang order an appraisal.

@Stefen Romero education! It’s a cutthroat, competitive business. Unless you’ve got a very trustworthy adviser you can count on, you just need to start reading and learn what you can before diving in, in my opinion.

If you want to learn as you go, start small. Don’t dump 2 mill into your first deal.

@Monica Morff caveat emptor.

Your biggest mistake was offering them anything in my opinion but talk to a lawyer.

@Lydia R. Licensed agents actively pursuing pocket listings is frowned upon. The idea is, the MLS is there to expose a home to all equally. It doesn't theoretically do the seller justice with limited exposure. I know it happens all the time though. Our MLS Chief legal counsel just sent us a video about that and how we have a duty to list a home for maximum exposure versus pocket the listing and show it to a few select potential buyers.

Personally, if I was wholesaling, I’d rather not be licensed.  We’re bound by a lot of different laws and Code of Ethics others aren’t restricted by.

@Anthony Dadlani So with option 2, the property closes in the investors name as owner and we just write out an agreement with the terms of our deal as the investor and I have discussed?

* ARV. ...is there any way to edit a post on the app???

@Chris Gilbert I’m in a similar situation but from RE I know you need to know your numbers. No one will give you a slam dunk. Do the comps, know the real AVR then work backwards - rehab cost, your profit, any carrying costs... THATS your offer price. A lot of it is market specific as well. I haven’t flipped yet but I know it’s incredibly competitive and you’ll need to know your numbers and they gotta be fairly accurate.

I’ve thought about “bulk sending” lowball offers but in reality, it just don’t work without a legit basis for the price.

I’m a licensed broker associate and am fortunate to be working with a client/investor who will be fully funding fix flip deals with me. I am wondering what’s the best setup so each of our duties are clearly outlined and for accounting purposes. Investor is the bank and I’m doing the flips, any profits would be split.

What kind of formal agreements should we have?

Should everything go in an LLC?

Does the home title in investors name? LLC's?

I’m not concerned about the first or second flip per se but as an ongoing venture, I’d like to know how to set things up correctly to build a solid foundation as a real business.