All Forum Posts by: Ray Johnson

She hasn't paid the mortgage in 18 months? Is she already in foreclosure proceedings? At 80k underwater no one is going to buy the property at a loss unless there's an aggressive outside of the box strategy, What area of NY are we talking about? Any of the 5 Boroughs where there's an option for various strategies or Upstate NY where a short sale is her only option

@Kasey Nordeen I don't know what a Wholesaler calls the money they collect on a Wholesale transaction, a Fee, a Commission, Finders Fee, Facilitation Fee? Whatever it's called the DC Code seems to have covered all options by using the language "or other valuable consideration" Unless you're doing it for free there is some form of value being obtained by the Wholesaler period.

You can contact the Real Estate Commission as recommended by @Russell Brazil , with my experience with contract law the language stating "valuable consideration" would be what DC would most likely argue as the violation in a legal matter. 

Even with the code in place I will say that I've encountered many Wholesaler trying to conduct transaction in DC, I'm assuming the code enforcement just hasn't caught up to the illegal practice taking place.

Instead of Wholesaling maybe you can propose an enforcement arm to the RE Commission to shut down the illegal Wholesaling and make money that way.  

@Adam Jaken Like many others have mentioned on this post, not everyone may be stating their true rate return. You can get nice returns in just about every market, the markets just aren't flooded with those deals and it takes longer to get them, especially when you're dealing with Class A properties. If you're only interested in Class A you should expect returns in that range. Also keep in mind most people that are boasting their rate of returns don't seem to be saying if the properties are Class A, B, C, or D.

One of the things that I do is look at my portfolio as a whole, I have brand new construction in Class A areas, in addition to Class B, and Class C properties. I currently have more class B and C than I do of class A so my portfolio as a whole has a much higher rate of return.  

@Jessica Oots I'm having the same thoughts as @David Dye the rates are very low so it may be easier getting a new loan unless someone in the transaction won't qualify for a better rate or the new owner will be Non-Owner Occupant meaning the investor loan rate will be higher that an owner occupant loan rate 

@Eddie V. the signs you see are from Wholesalers. This is one of the many tactics they are taught when being mentored to get into RE. If you're looking to build a team and you're looking for a few wholesalers to find properties while you fund/purchase the houses, they may be interested.

@Levi T. What area are you doing 30 Buy-and-Hold deals in this year? I see you're in VA, What type of returns are you getting on those 30 deals?

I don't target for deal volume in my portfolio, I target for ROI per deal.

@Account Closed you need to be careful offering money to the "I have a great idea crowd". I worked for a couple of REIT's while I was in LA and Orange County, CA. and the industry is full of teams with projects in the pipeline so they're looking for funds.

Great post @Levi T. It would appear with all the talk about a pending crash there are some nervous investors in the industry that may be way over leveraged.    

@Russell Brazil I see the next crash as a great buying opportunity as well.

In the DC and surrounding M/V areas the deals are pretty strong, I see a lot of what's happening in Baltimore to be a different story since that market isn't as strong as the MD areas closer to DC.

Where would you say the dividing line is in MD where property values will be affected the most in a downturn? We all know areas like Rockville, Silver Springs, Bethesda, etc.... wont be an issue but going further out towards Baltimore there must be a line in which the fundamentals of some areas will cause them to be affected more in a down cycle.

I was in CA in the last down cycle so I don't know how this area was truly affected. 

All of my investments are structured properly with good fundamentals so I'm not worried about a crash.

I'm planning on buying at some point during the next RE crash to take advantage of the all the bad deals factored into the current market.

Just like the last crash, it will present opportunity for the experienced investor and nightmares for all others.