All Forum Posts by: Steve Christensen

I am hoping @Bill Gulley weighs in on this. Not only because he is from my state, but I have seen his posts, and his knowledge is incredible.

I'm thinking the end result is, you must close. I know people wholesale, but it seems that if you want to be 100% covered, you must 1) be licensed, 2) disclose your intentions 3) close on the property.

Really looking forward to hearing the feedback!

@James Wise that's what I'm thinking too. Along with your last sentence, it doesn't seem like you can do anything right, as a wholesaler then. 

What I mean is, many, after what happened in Ohio, are recommending that you get your license so you're not brokering without. I am licensed. 

I state my intentions up front with everything, but unless you buy and close for yourself, it seems as if there is always this elusive grey area hanging out there.

Thank you for the reply!

Can someone please explain the difference (if there is one) in a Net Listing vs wholesaling?

My understanding of a Net Listing:

Net Listing provision states that seller will receive a net amount of money (say 150k for their house) from any sale, with the excess going to the listing broker as commission (broker sells for 175k, keeps 25k for them self). The broker is free to offer at any price greater than that net amount. Because a Net Listing can create a conflict of interest between the broker's fiduciary responsibility to the seller and the broker's profit motive, however, net listings are illegal in most states and are discouraged in others.

So is there no difference? Or is there a difference because in wholesaling the deal is typically non-commissioned?

To my knowledge, the only way I see around this is if you buy outright someone at x price, close, then sell at y. Because then you can sell for whatever you want with no fiduciary responsibility to a seller.

Does an Option to Purchase Contract, with full disclosure that you will be marketing for a profit, allow the ability to do this?

I appreciate any feedback.

I am at a loss on what contract to use and what terms I should fill out.

I was recently told that an Option Contract is the least binding, and that if I do find a buyer, that I'm going to have to go back to the seller to get a Purchase & Sale Contract signed anyways.

While I do have the ability to close, if I want, at this time I simply want to wholesale everything I come across. I am licensed, but it is currently inactive, so I don't believe I can use the associations Special Sales Contract.

I am up front and honest with the sellers that it may be myself or another investor purchasing their property. 

With this information, what contract would you use? Is it true that I have to get a Purchase & Sale Contract signed after the fact if I find a buyer and all I have is an Option Contract signed? If that is the case, can I just get a Purchase & Sale Contract signed, disclose that I am marketing the property, say for 15-30 days?

@John Hixon, @Bill Gulley, @James Green These were all very helpful, thank you so much!

 @James Green I am new, just disclosing up front, but I have heard, indifferently on the website issue. I had the same question and spoke with a few wholesalers doing direct mail marketing. Some said they don't want their website on postcards (letters the absolutely did). The thought was that they wanted calls, not people going to a site, then potentially not calling or signing up.

However, some wanted the site. If you have a very good converting site, then hopefully you won't lose people. I did not visit your site, but someone mentioned it could use some updating.

@Michael Quarles Again, while I am relatively new to wholesaling, I've read a lot of posts where Michael contributes, and his advice has been amazing. Coupled with the fact that he just presented his card that is not on the site is hands down top notch. Unless I missed it, I did not see a URL, but the text capturing is ingenious...even my grandparents text now.

Michael - What are your thoughts on having your site / URL on postcards?

@Bill Gulley I sent you this as a PM, but realized it's best to post here, maybe others had the same question:

If you don't mind me asking, if you do NOT have the ability to do the things you mentioned from Michael's post card, how would you word it?

This is one of the biggest things I'm struggling with as a relatively new wholesaler....I do have the ability to close quickly, with cash, etc.

However, I'm always thrown off on how to talk to motivated sellers, say through my bandit sign campaign, that call about a property that I DON"T want to buy. I flat out tell them up front that I won't be purchasing, but rather that I will be marketing to investors that I am deeply connected with (this is true), for a slight profit (via assignment or double close). I also NEVER do this if they are facing a foreclosure (say 2 weeks until the date, and mislead them that their house is going to be a guaranteed purchase). If they give me 30 days, and I can negotiate a good price, I should be able to sell it.

It just kind of throws me off, because up front it's "I'll buy your house", then it's "I won't but I'll market it", but I have to deliver enough value for them to see the potential in doing that.

Anyone with feedback, posts to read, etc. would be much appreciated!

@Bill Gulley, Yes, I would be purchasing with private funds to purchase and close to own the property, not wholesale. Thank you for the response!

I have a seller who is considering my offer on their property. It's in a very decent area and needs very little work.

A price has been negotiated as I've seen their house with them and all their contents in it. Is there anything I can write in my offer, that can protect me in some form, if they damage the house upon move out, or if I see something upon them vacating that I couldn't before?

I'm not saying they would, and they don't seem like the type, but things do happen.

How do you handle / protect yourself / your offer when evaluating deals for offers on properties that are not vacant, but rather have sellers that will need to move out?

@Jim Briggs What are you looking to have done? Feel free to PM me.

I am new to wholesaling, and would like to activate my license for comps, searching the MLS, etc. A few brokers have offered work doing BPO's as well, which I feel like I can only benefit from, and I can get paid early on while working some deals.

As a wholesaler who would be doing non-mls deals, do you feel like I should disclose this to the brokerage? If so, do you think that broker will want a percentage? And if so to that, what do you feel like is fair?

I guess what I mean is, many wholesalers who are either out on their own or don't have a license aren't paying a percentage to anyone. I am not trying to go behind any broker by any means. I just don't really know what the expectation is or what is fair.