All Forum Posts by: Erin Elam

Every deal is different. I do plenty with option periods. I would say that is more the norm than not, but maybe it depends on the deals you're going after. Wholesalers don't like option periods, they like cash. How do you know the offer that got accepted did not have option period? That's unusual that you would know much about the offer that did get accepted. Sometimes we can find sales price or find if it was cash or financed...but option periods don't always get reported. I guess if it goes straight from Active to Pending in MLS then you can assume there was no option, but that's not 100% true.

You just have to determine a way to make your offers stronger....more earnest, more option, faster option, higher price, offer to pay title, eliminate the home warranty and there's a whole host of other things you can do to make your offers look better.  When I first started 10 days was normal option period or at least not unusual...then it moved to 7 as the market got stronger, now not unusual to see 3 and 5 or 0.  Zero can be tough, but 3 is possible and 5 is certainly doable.

Be creative....to match the market.

@Kenneth McKeown I agree, I don't think you can compare the Tulsa and DFW area markets directly. I live in Tulsa (one of those historic neighborhoods minutes from downtown). While the rents are lower here, the purchase prices are too. I have one rental I bought late last year, in neighboring Broken Arrow, that rents for nearly double the mortgage/taxes. 

For comparison, my rental is a renovated 3 / 2 / no garage 1300 sqft house in downtown BA (still 20 minutes to downtown Tulsa) that rents for 1100. 

@Meg Mussman I agree. Not sure what you purchased it for but in DFW our downtown market is crazy expensive (I'm building a house downtown myself). However our rents correlate usually as well - for instance there are many houses that rent for $3-6k/mo downtown. 

@Mashika Patrick

I’ve wholesaled houses before and I’ve bought dozens of rental and flip projects from wholesalers. I’m good friends with tons of them.

But I see a problem with the business model. Many of my friends are seeing this too, and getting licensed.

Here it is.

I think we can all agree wholesaling is just brokering real estate. It’s just connecting a buyer and seller for a fee.

So if you look at it in those terms, wholesalers are basically agents. What kind of agents?

Agents with no credential. Agents that can only work within a tiny niche of the real estate market. Agents that can’t really build a brand to sustain them long term. They can only take “net” listings and have limitations on how they can market them. Their buyers can’t use conventional financing.

To me, it feels like being an agent with one hand tied behind your back.

Here’s the worst part. That tiny niche is being flooded with new entrants everyday.

Im not saying you can’t or shouldn’t wholesale. Give it a try!

I’m just saying that getting licensed is a better business move if you’re serious about real estate long-term.

 I have never been asked what I was going to do with the money I have extracted via the refinance.  So I can do with it as I please including investing it in RE in another state.  

Many years ago we did extract money from a San Diego RE to make down payments on two Alabama RE.  This was maybe 15 years ago.  But my recent refinances have had no inquiry into what I was going to do with the extracted money so I could have done this recently (but have not).

The RE that secures the loan is the RE that is being refinanced.  The other RE that may have money put towards it really is not part of the other RE refinance (other than the borrow chose to use the funds toward a different RE versus stocks, of mattress, or commodities, or bonds, or mineral rights, or ???

Good luck

Hello I’m refinancing a San Diego property and paying off a loan on aHawaii property and my question is the cash out taxable since it’s a loan?

Thank you

Tommy

I am struggling to input the Hard money lender portion into the BP calculator. I plan on having the HM loan for 3 months. I am getting confused with the following

1.when putting down the down payment option for the purchase loan

2.interest only option

3.amortized over how many years? ( I am guessing one year but only need to hold the loan for 3 months)

Could someone please help me understand how to work this calculator with the HML? Thanks in advance hope that made sense.

BEWARE! BEWARE!! BEWARE!!!  Zeus Lending is a fraudulent company, very dishonest and their scam is to say you are approved and then take your money and drag the process out with no end in sight.