All Forum Posts by: Pita Lucas

@ Lydia. T. and Jerryll Noorden: thanks for both of you sharing your experience about this topic. I still wanted to discuss further about the example i mentioned above. The wholesaler made a difference of 39,000 between two transactions on the same date. 

As per my understanding, one wholesaler is in the business of buy-and-sell as quick as possible and make transactions as many as you can.  Most people assume that the wholesaler made a tiny profit for each property, but the transaction occurred within a short period of time, thus the overall profit over a long period such as one year looks decent when the wholesaler can make quite a few transactions.  Will you mind sharing if this is also your strategy of doing your wholesaling business?

i read through the forums and many flippers would be satisfied with a profit of $5000-$25000 for each property and they share a similar business model: quick in and quick out.  Most flippers need to do some remodeling works i assume.

Regarding the example i mentioned above, the difference $39k out of 69k is a hugh profit in my opinion. Although i know that the end buyer might be too late to renegotiate the price with you after knowing the difference afterward. But do you have any concerns that in future this end buyer might no longer buy any property from you or give a low ball offer for your listings after learning the lesson? 

A little bit disclaimer: I fully understand that the wholesaler might need to spend a lot of time and efforts to find a property which is suitable for wholesaler and it requires an extensive knowledge and expertise for local market and legal matters related to real estate transactions. The market force(the invisible hand) will dictate how much one wholesaler get paid for her/his hard work.  My experience so far is that if you want to be in this real estate  for a long term, you need to build your reputation and your social network. I believe that the wholesaling business also follow this.

Dear All,

I came across this post and it contains a lot of useful and relevant info to me. Big cheers to Biggerpockets members.

However, i do have one related questions: i read through all the replies in the post and some members said that double closings can prevent the end buyer from knowing how much profit the wholesaler has made from this transaction.

There is one ready example: there were two transactions occurring on the same date and the difference is $39000. Does it mean that the wholesaler made $39000 gross profit out of this double closings?  Can any member shed some light on this? it appears to me that the end buyer is still able to see the profit made by the wholesaler. If deducting any closing costs probably a couple of hundreds, can i think that this wholesaler made a fortune with this transaction?

Hi, Everyone,

I am a buyer of one residential townhouse. My buyer's agent told that the property was used to be in a living trust and then its heir got the property. The heir hasn't live in the property before, they didn't provide any seller disclosure. 

I checked the relevant florida law and as per my understanding, the seller is required to provide the seller disclosure. 

http://aboutfloridalaw.com/2013/10/22/duty-to-disclose-for-sellers-in-florida-residential-real-estate-transactions-florida-real-estate-buyers-are-protected-by-florida-law/

But my buyer's agent told that this was not the case. The seller is NOT required to do so because the property is inherited.  

Does anyone as a buyer have a similar experience ? Any clue or hint will be greatly appreciated.

Hi, Everyone,

I am a novice real estate investor in Florida and in my city, there is one team of agents who claims that they are number 1 top selling agent in the local market and they said there has been about 160 sales for the past year. The number of agents is about 6 or 7 agents and they combined their sales under one team, which makes their performance very outstanding..

That team put a lot of ad on everywhere such as zillow, trulia and local radios. I saw many houses was listed by this team of agents. The properties listed by this team always have a much higher price than similar listings. I thought that these houses couldn't be sold easily.What makes me feel fishy is that  these houses were sold very quickly and usually within 1 week(I normally saw a sign which said "Pending"). After the listing is under contract, I would still keep an eye on those listings. One month or two later, I checked the county's public records. There were no such transactions or deed transfer recorded for those properties even if that team of agents provided an record at Zillow.com that the property was sold at which date.

Have anyone notice a similar phenomena in your area? I would like to share my observation with other via this forum and alert other investors if there is something wrong behind it. I suppose that many investor tend to choose real estate agents with a lot of sales record. Or maybe any seasoned investor may shed light on these "transactions".

I am looking forward to any other's comments on this topic and let us learn from each other.

Dear Everyone,

I have been a real estate investor for a couple of years and I think that the internet has transformed our way of finding the target investment property. Many online websites such as Zillow and Trulia offer us a wealth of property information and provides us with more transparent sources than before. For crime statistics, for flood zone for HOA information and you name it, almost all those information can be found somewhere online. Although there might be some inaccurate or misleading info, we as our home buyers/investors at least have some source of information to double check and verify them later on with respective professionals.

In my process of hunting properties, I heavily relied on the county's appraisal website information to facilitate my investment decision.  I would like to bring this topic to this forum and see if any other people have any GOOD/BAD experiences in using county's appraisal information. What do you think of the dependability of those county's appraisal values(i.e. the property's market value)? As far as i know, the valuation method used in county's appraisal is called "CAMA" and there should be room for improvement since it was calculated by the computers. Specifically for my local market, I noticed that you might get a good deal if your purchase price plus any repair costs if any are less than the current year appraisal value.  Moreover, I often turn to the county appraisal website for the transaction history of the properties. Since there is a classification of "Qualified " and "Unqualifed" purchases, we are able to identify what are historical prices for the house which occurred between  actual buyers and sellers.

I hope that anyone can share any knowledge with everyone and thanks in advance for your kind attention.

Pita

@

Hi, there,

I am a newbie to BiggerPockets and I am asking some questions about the warranty deed(title).

I bought one foreclosure house in Florida and i was given a "special warranty deed". It appears to me that all foreclosure houses are given this type of title. I found some relevant info via google:

Quoted:

There are two types of deed, a "special warranty deed" in which the grantor (seller) guarantees he encountered no clouds to the title during his period of ownership ONLY. in a "general warranty deed", the grantor guarantees to defend your right of title for claims arising from ANY period. 

Unquoted.

Here are some questions:

1) It appears to me that all foreclosure houses are given this type of title. Is it correct? can the buyer of the house request on the bank to give the warranty deed? is it possible?

2) since i bought the house with special warranty, does it mean that I must sell it in future with special warranty? Is it possible for me to sell it with giving warranty deed to the buyer? If this is the case, does it mean that I , as the seller, will have a bigger liabilities?

Any advice will be greatly appreciated and thanks in advance for your help.