All Forum Posts by: Dave Passey

Get the property under contract. That is the first step. If you don't have it under contract, then you are marketing something that you don't have the right to market. Make sure that you are getting it at a price that will make sense for you to be able to sell it to an investor. Knowing their criteria will be helpful, but in all honesty, if it is a good deal, then the buyer will be there. 

I know it can be scary to contract the property without the buyer in place, but you are just going to show yourself to be unreliable if you go to your investor and they put the time in to try to look it all over and then for some reason you can't contract the property. 

If it really is a deal, then you will be able to sell it. 

You can't get away from that flood insurance and it seems like a lot of people are thinking that it is only going to go up too. I have picked up a number of properties that are in the flood zones and have been able to sell them wholesale decently well. There are definitely a number of factors to take into consideration though. A big one is how many times has the house flooded? For example, there are a lot of homes out there that have flooded 2-4 times in the last few storms in the Houston area. These house are worth less than a house that flooded for the first time in Hurricane Harvey. This one was unusual. If it is borderline on cashflow as a rental, then I would probably push more towards doing it as a flip. People are still purchasing houses in the flood plains because they like the location. I would probably recommend making sure that it is still a good deal if you aren't able to sell it at what you would consider full market value. 

I have recently been seeing this quite a bit more lately and have been debating on how I should approach this in my own investing. I am regularly doing my numbers for maintenance on a deal and have been trying to determine if I should be including lawn maintenance and snow removal type things in my general 10% maintenance calculations. 

I feel like it is the type of thing that could potentially be passed onto the tenant in the right circumstance, but that is clearly not always the case. In the event that I am keeping up with the lawn care and general snow removal (if needed), should that be included in my 10% or should it be an additional amount that I am calculating in?

What kind of rents are you getting that you are able to cashflow $250/door per month on a $550k mortgage? I am blown away by this. 

I would very much like to see your deal structure. 

As a disclaimer: I have no idea about contract laws in the UK. In the US, when mortgages and other things are attached to a property, it will be found out by the title company when they do their research. The mortgage gets paid by the title company when funds are dispersed at closing because the mortgage company has told them the payoff amount. Same thing goes for other liens or encumbrances on the property. 

You should talk to a UK attorney about how it works over there. 

Good luck!

Hey @Shiv Jey

Your scenario sounds a little bit different than a typical wholesale deal. As a wholesaler myself, we typically don't do any of the rehab work. It sounds like this is a little bit more of a turnkey investment, yet possibly still buying it at a discounted price. 

My first question would be: Why would he sell at a discounted price if he already did all of the rehab work and could list if for retail price. Why is he even bothering to try and sell it to an investor like this. 

Second question: What part of Utah are you buying a fixed up house for 48k? Because I want in. 

What I do when I am in a situation where I can't get to a property but I want it looked at is to hire a contractor that can go in a double check a lot of the work. You will have to pay them obviously and tell them the things that you want them to look at and inspect. 

I would not have the wholesaler do the inspection stuff for you, but it would probably be okay to have them draw up the contract. They should have one already put together from their lawyers originally. Or you could just request that they do it on the standard state document and then have a realtor look it over to make sure that it makes sense. 

The appraisal will be from the bank and they will typically set it up because they will use someone that they trust so you shouldn't have to worry about that part. 

Hey @Jeff Garrett

I have been following this post to see if you got any traction. Contractors are tough to find these days down in Houston. You are looking at waiting a couple months if you don't already have a good relationship with these guys. Then, you are going to be looking at about a 25% increase in your rehab costs. I have been wholesaling in the area and having to make sure to calculate in significant increases to our regular repair model. Even with more work needing to be done, we are finding that we are typically having to contract houses at about 10% lower than we normally would in addition to the increase in repair costs. 

Unfortunately, I don't have a GC recommendation for you in Houston, more just a word of caution. There are a lot of good deals that are still available out there, but make sure you are accurately estimating the repairs. Like you said, plenty of people are overpaying and that is just bad business all around. It is not going to make you want to use that wholesaler anymore and it is going to put a bitter taste in your mouth toward real estate investing. 

If I were in your shoes, I would call up and talk to like ten contractors and see what they can do and see which one seems to fit best with your investing style and strategy. It will take time and be a lot of work but hopefully you will be able to end up with someone that you will be able to have a long relationship with. 

Good luck out there! I hope it goes well for you and that you can find some good properties. 

Does anyone know of any active wholesalers in Missoula that are actively doing marketing of some sort? Guys that are finding off market properties to sell. Or really even wholesalers in any of the major cities around here, like Butte, Helena, Billings, Kalispell. 

Try for a portfolio loan with a smaller credit union in your area. We have had them do bundle loans before. Pros: you can get them all under one loan. Cons: if you try to sell one of them, the bank may want to better their position on the loan and not give you as much cash. They did that to us once. Terms and stipulations vary widely from bank to bank. 

We like this option for our business. It is not for everyone but worth looking into. 

I have not done monthly payments with Venmo, but I have sent around $1600 through there and there were no fees at all. I have wanted to have an online rental payment set up. I think it would make things very clean and easy. I like that you can send requests for payment as well with it.