All Forum Posts by: Tara James

Have you tried the courthouse? I'm not from PA and I've never been there (im in California so it's much easier), but this is a good way to acquire properties that are a financial burden to the owners...The county records always help!

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Have you ever invested in California? I ask because I started with the assignments and I never really made it anywhere :( The banks rejected every offer I submitted! Also, I to have heard about "Land Trust", are you familiar with that strategy?

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Okay so here's the deal:

I currently have a property under contract with the bank and my buyer backed out on me :(

The deposit is due today ( $2500 ) and my buyer who was originally supposed to pick it up backed out...

The property itself is an AMAZING DEAL!!! LITERALLY!

I picked it up at $116,000. The repairs are only $15 - $20k and the actual comp is $193,500.

It's a 4 bedroom / 2 bath with 2003 sq.ft....

So my question is what should I do?

Initially, my buyer was going to wire his funds for the full purchase amount to escrow but he's MIA :(

Luckily the bank doesn't have my deposit yet, but I know I'll have to turn it in by this evening....should I turn it in and find a buyer by friday?

Please help...I'm very new to this and this is my first deal!!!

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Originally posted by Stephani:

Nationwidepi,

I closed 19 REO wholesale deals last year, and all of them but 2 were done via simultaneous closings where I used my buyer's funds to fund both the A-B and B-C. There is full disclosure to the end buyer that their cash is being used to fund both transactions, and they are required to sign the disclosure at the closing table that states that they are aware of what is going on.

The other 2 transactions were done by me adding my buyers's name to the purchase contract after my offer was accepted, closing on the deal with my buyers' cash, and then quit claiming the property to them right after closing in exchange for my fee.

There are about 15 other wholesalers in Tampa that I know (and many in other states), who are doing these types of deals all day long. Its not a myth or a theory, it is actually happening all the time.

For those who think it makes you more "legit" to actually bring your own cash to the AB closing.. that doesn't make sense to me. Why would I borrow the cash to bring to closing (and pay points and fees on the loan), when I could just do a simultaneous closing, and be done with it? If you have the option available to use someone else's money to complete a deal, then I see no reason not to go that route. Maybe I am missing something?

Steph

Hello Steph,

Do you mind explaining your strategy a bit with more detail? How do you gain the relationship with the investor to where you can use his funds to close deals? I have a ton of cash buyers, but I can't seem to get around the basic "wholesale concept" of using and/or assigns....I guess what I'm asking is how do you to them that you want to use their money?

Help!

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Originally posted by Ryan Weber:

The title agent is essential to any double closing, and I think your biggest problem, Will, is exactly that. I don't care what state you are in. I have had title agents in my own town tell me that its illegal and you can't do it, and yet I've had highly experienced attorneys tell me its perfectly legal. So my advice, again, is to find a new title agent. I've shared that with you before but you don't ever really seem to address me directly about it.

I don't remember you addressing this directly with me, but I appologize for my lack of response. Here it is now: I am not personally stating that it is illegal, or fraud, I am repeating what I was told. Am I taking that at "face value"? No, which is why I am questioning it here on BP and other sources. I have had 3 title reps tell me the same thing in the last week and a half. I am attempting to validate or disprove it right now. Many people say you can't do something, but what they really mean is THEY can't.

Hey Nation,

Chicago Title allows double closing...they have a few branches in Cali!

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Originally posted by nationwidepi:

I have heard many people here on BP talk about "wholesaling" the property via a double closing and no money or credit needed. Few, have gone into deal to answer this question: If "A" is the bank (seller), "B" is you, and "C" is your end buyer, the A-B transaction must close before the B-C and you can not use the C funds to close the A-B transaction (in my state and many others). That is considered loan fraud in CA and no title company will touch it. So how are you guys getting around this?

Question 2 is this: IF you are buying a bank REO, in many cases, the property is in poor condition (or at least needs some amounts of repair). IF you had a situation where you wnated to sell to "C" and "C" was an owner occupant looking for a ready to move in condition home, how do you get the home fixed while it is in escrow and owned by the bank prior to doing your double close?

Hello Nation,

I completely agree with all the advice that you have been given, but I too have run into problems while trying to Wholesale in California. The majority of the banks really aren't accepting assignments. Actually, I'd say like 97% of them are saying no! But don't fret though because there's still 3% of the banks that will allow you to assign a contract, especially if they're desperate.

I got into investing about a year ago, and I'm one of the million people who haven't made a deal yet...Of course that was due to my lack of knowledge, but the 6 mth run around taught me a lot about this crazy California market... And let me be the first to tell you that a lot of these strategies are automatically tossed out of the window for us :( But you can't give up...

Just this past weekend, I put my foot down and marched to my agent demanding that he submit 25 low ball offers on properties that have been on the market for a while. These properties usually have minor to major repairs , but its okay since you're offer is low. From those 25, my agent found out which banks accepted assignments and it drastically reduced the huge list to a whooping 4 properties. :D I mean that really isn't to shabby if you consider the numbers. The point is that eventually one of the strategies will work. You just have to choose what works BEST for you! If you have the money, great! That's even better for you AND the bank. If you don't or if you like OPM better, than those resources are also available in Cali...they just aren't as easy to access like they are in other states.

Hopefully this helped a bit...I just never see any advice from California and things can get a bit tricky :/

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All Forum Posts by: Tara James

Tara James has started 1 posts and replied 6 times.

Post: NO MLS LISTINGS!!

Post: Beginners Guide To Wholesaling: Killer Exit Strategies pt.1

Post: AM I IN TROUBLE???

Post: Wholesale Investing

Post: Wholesale Investing

Post: Wholesale Investing