All Forum Posts by: Ray A Delfi

@Steven Denio you didn’t mention why you are considering this route. It seems very complicated and would require someone with a specific skill set to manage it. Is the place hard to rent? Have you compared the income you would receive it you split it up in shares (or however you figure out to structure this) compared to a traditional rental property? Did you do a search for your neighborhood for any Air BnB listings to see if anyone slipped through the cracks and find out how? I’m sorry I could t answer your questions and dumped my own questions on your post, but I’m just curious what brought you to this venture. The K.I.S.S. strategy seems like the way to go.

@An Duong did you deed the property back to the resort? Was the $700 the fee the Realestate attorney charged you or did you go through the website that was suggested above? I haven’t sold mine yet because I successfully sold a few certificates this year to family, but when I was doing my research during a divorce settlement I would have to pay an attorney to draft the quitclaim deed to my name to take my ex off the title.

@Rodney Wright depends on how their contract/ account is structured. If it’s a points account they can find available properties for low points and get a guest certificate and give them a competitive rate to other resorts or hotels in the area they wish to travel. I sold a few guest certificates to family were the fee was $200 to book and offered a 7 night stay in a all inclusive resort in Cancun for only $700 net $500 profit. I was upfront and told them that I’m selling to cover my maintenance fee and will offer a better deal if they would book in their own. Friends and family is the safest bet. With out a hospitality license and insurance there is a lot of risk and liability involved when selling to strangers, so definitely do your research. The timeshare companies don’t support selling and making profit on your timeshare and could cause revocation of your membership.

@Ned Carey hey Ned I figure they make their profit when you get approved it’s about $850 fee they take when you get approved for the loan. Then you make the payments plus interest to the servicing company that awards you the loan. If you have good credit and no other options it could be a good fit for quick cash with lower rates than a hard money lender, but lacks the negotiation and review of the deal you are proposing. Just like the other lending companies they just plug in your information and cast out the line to see if anyone bites with no consideration for the deal or project or exit strategy your working.

Update: We pulled out the joists and now there’s a huge hole in the kitchen bathroom area ready to build new decking, but my loan application was denied. So I’ll have to slowly crawl through the rebuild out of pocket until it’s done. I appreciate all the advice above!

@Michael Woodruff what do you think is keeping you from closing, besides lead:Close ratio? Read/Listen to the book How to buy properties with little no no money by Brandon Tuner, there are a bunch of different strategies in there that you can learn and have in your tool bag for just about any situation. I’ve listened to it about three times and may go for a forth, as I pick on something new every time. I have an hour commute to work so I throw on business books, realestate books and podcasts instead of listening to music.

@Gage Clark it's a good idea to have a realtor in your network. Though some are not fond of wholesalers, but I'd do and is why I have wholesalers as one of my keywords alerts were others have other reasons. I appreciate the seasoned wholesaler that do that thankless Job of finding great off market deals that realtors and investors don't have the time for and are usually gracious if you bring them a great deal they can close quickly, that is, if you do your due diligence and are very close on your rehab estimates. Realestate agents usually know the key players in the area and offer great insight on the market and can pull the best comps off of recent sales on the MLS. This obviously describes the perfect realestate agent and they are not easy to find and don't suggest blasting emails asking to be friends or constantly sending request for information with nothing in return. A good place to find them are in your local REA or REI meetups.

@Patrick Bavaro have you considered a subject to existing mortgage? Looks like the seller is looking for 5k to get out of the property. Confirm this with the attorney, but if you contract with the seller 5k at closing and to keep the existing mortgage in place as long as the holding cost are reasonable, either you or the assignee can take control of the property while continuing to make the payments and on time and complete the Rehab to sell at market price. If you assign it make the assignment fee 5k + your fee to be distributed at closing. But sounds like something you can take down yourself and make a bigger profit at the end of the day.

@Michael Woodruff yes read! I spend hours listening to podcasts, listening to books on audible. Every min of the day I’m along and not working on something I’m learning. But to answer your question, strategy on “calculating” a wholesale deal. How much do they want, how much do you want, how much work does it need, how much will it sell for.

ARV x .7 - Repairs - Closing costs - Wholesale Fee= Max allowable offer

100k x .7 (70k) - 20k (50k) - 3k (47k) - 10k =

MAO 37k

They have a wholesale calculator on BP.

@Patrick Bavaro sorry forgot to provide my opinion on the seller covering the title search. I would be against it as I feel the whole purpose of wholesaling is to isolate the seller from any costs on their end and you as a wholesaler are there to assist them get out of the property and with some assurance that you will be able to close. Asking them to cover costs would raise a red flag if I were in there shoes, just saying. However if say they are looking for a profit of 10k and the title search cost $500 factor that into their profit and have it paid out at closing, if possible, which may be unlikely as you would want to the title search prior to closing. Anyway, the less burden you put on the seller the more likely you will close the deal.