All Forum Posts by: Saad Khan

Chris Sullens That deal is not going to close. The underwriter(bank) is going to see that the wholesaler is not on title and they will not fund. Bank will see that the chain of title shows the original owner as owner of record and your contract shows the wholesaler as the seller who you're in contract with. I flip and wholesale properties for a living. I'll be the first to be admit if I'm wrong but I've come across this same issue multiple times in Texas where I'm from and California where I currently reside. Every time this is the case the deal hasn't closed because the bank will not fund.

Hi Linda Young! I have actually real estate in Texas (Dallas and San Antonio) mostly distressed homes including short sales. I agree with the others- I don't know why your broker would tell you to stay from short sales aside from maybe having a personal experience which was negative. Short sales do take time. Short sales can also be some of the best deals you can acquire for yourself or your clients. You have to looking into the different stages of short sales. You also have to know what questions to ask. Main question to ask is if it is an approved short sale. If it is then what's the approved price? If that price works for you then move forward and if not, keep looking. If the short sale isn't approved then submit an offer where you fee comfortable acquiring the property. Just know that with short sales the more questions you ask, the better questions you ask, the higher your success rate is going to be. You don't want to waste your time on just one short sale...it's a numbers game. I hope this helps. Good luck to you!

Alejandro Flores How do you answer those calls when a motivated seller calls you? What questions are you asking?

Chris Sullens you mention a bank. Are you just referring to you funding the deal from your account and wiring funds? Or is the bank actually funding the deal putting a mortgage on it? If it's the latter then the bank is gonna see that he wholesaler is not title and they will not fund. Some hard money lenders might consider doing that but not the experienced ones. As far as letting a wholesaler use your funds to close the First transaction (AB transaction or Frontside Escrow whichever you want to call it) - I would highly recommend you to not do that. You lose control of the deal and that is not legal in many states like these other gentlemen have pointed out. I'm assuming this is a great deal and you do want to close. You also don't want to lose out on the deal or your earnest money if it is non-refundable by now. The simple way to get this transaction done is to have the wholesaler do a name change addendum (change the vesting) where she changes the name from her entity or personal name (however she contracted the property) to your entity or name. You can also direct the title company to put the wholesalers fee on the settlement statement by writing up an agreement between you and the wholesaler of the fee/invoice that is to be paid to the wholesaler at the close of escrow. Unless it's an assignment, vesting being changed to your name or the wholesaler is using his/her funds to close on the first transaction, I would not recommend this type of transaction. It gives you less control and a much higher exposure to risk when you're letting someone else pass-through your funds to close the first transaction. I would definitely call a real estate attorney or a local broker who has experience with wholesaling before proceeding as laws are different from state to state.

@Jay Hinrichs I see where you're coming from. I closed on a deal last month and took in a total fee of $2700 - the price on that house was $214k. This was an MLS deal with 3% commission that I gave up so the seller can net some cash to move out. I did that to get the deal done and the investor was happy. We do not represent the investors- most of the time these investors that purchase from us have their own agents that guide and direct them on the end value of the property and the repairs. A lot of them are brokers and agents themselves. It's not about greed Jay- it's about saving investors time and leg work so they can focus on rehabbing the properties instead of chasing deals down. We simply bring the deal to the investor and they decide if it fits their criteria or not. I understand you're standing by that statement and that's your right. I plan on being in this arena for a very long time and you've been in the industry for a while already. You and I can agree that this is a people business and we need to have an open channel of communication to resolve issues. I'm thankful for platforms like BiggerPockets which allows us to talk about issues and problems so we can all get better at resolving them and coming up with solutions. Thank you for your time Jay. I will talk to you again soon.

@Jay Hinrichs I'm glad you brought that up Jay. I've been doing this since I was 19 and I believe you started right around the same age at 18. I didn't understand this exact same thing when I started working with New Western. As I've come to understand it much better now- the main reason is to save the investor time driving from house to house submitting offers and waiting for something to get accepted. Instead we go find the deal and put it in front of the investor to let them decide if it makes sense to them or not. Our feelings aren't hurt when investors say no to us Jay. I listened to your podcast and you're a very knowledgeable person especially with the experience you have doing this for more than 40 years. So I understand where you're coming from. However, your opinion is your opinion and I can not change that only you can. I love real estate, I love dealing with people and I love doing deals. Most of all I love working with New Western. I respect your opinion that you may not like our business model but I assure you it's not as simple as me logging into MLS and contracting just any deal and mark it up to present to an investor. I've spent countless hours and put thousands of miles on multiple cars to get some of these deals. Regardless, I hope your business is going well and you're having a great start to this year! You should do another podcast before the year ends!

@Stan Butler I love it when people understand and appreciate what we do. Thank you for understanding and at the same time thank you for running your own numbers and double/triple checking them before moving forward with any real estate deal not just ours. You seem like someone who takes full responsibility for the decisions they make. I highly admire that. A few of the people that have had negative experiences do not realize the long hours our agents work and the thousands of miles they put on their cars in order to get some of these deals. Just because a deal is listed on MLS does not mean you can easily acquire it. It takes hundreds of phone calls, emails, negotiating, driving miles upon miles, meeting with sellers and agents...not to mention the marketing dollars that some of us spend just to get these deals. It's not as easy as just picking up the phone and buying a deal that's listed on MLS. We put in a lot of leg work to put these deals in front of the investor. Thank you again for understanding our process and we look forward to continue working with you! Happy Investing!

@Will Barnard I appreciate your input. Can you please specify which property or which agent you dealt with? I would like to find out more to resolve the issue. I completely understand that you may not agree with how we do business but we are full disclosure as to how our transactions are handled. I understand your opinion of us is negative in nature but I assure you we hold ourselves and our agents to the highest of moral and ethical standards. I hope you can give us a chance to address your concerns even though you don't plan to do business with us and I understand that. I am extremely proud of New Western and our business model. I'm sorry to hear that you've had a negative experience with us but that should not deter us to have open communication and resolve any issues that arise. Good luck with your real estate ventures and I wish you a successful and record breaking 2017!

I've been with New Western for 8 years. I absolutely love this company and my investors & contacts love working with me. I'm sorry to hear that a few of you have had a bad experience with us but that does not portray the company as a whole. If you've had a negative experience- then it's your right to not work with us. Time for me to get back to work- I wish you all well and hope all of you guys kill it this quarter!!!

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