All Forum Posts by: Guy Gimenez

Each MLS will have their own rules but the State of Texas doesn't regulate who can and cannot market on such a platform. For instance, in my area, anyone with an equitable interest or a limited POA can market the property. Of course, the party with an equitable has to clearly state that they do not own the property and that they merely intend to assign the contract, if in fact that is there intention. In a sub-to or Novation, it's typical to get a limited POA with allows for advertising the property on behalf of the seller.

Marketing, relationships, OPM. 

Wash, rinse, repeat.

1. Seek a consultation with legal counsel if you believe you have lost money and the amount of money lost makes it worth the time to pursue a complaint with the Texas Real Estate Commission and possible reimbursement from the real estate recovery trust account. It will not be a quick process though. 

2. It would be foolish to sign a new contract with the same brokerage. 

3. Make sure every phone call with your brokerage is recorded (two party calls only or make notification of recordings if more than two parties involved) and every email and text is saved. Anything in writing or recorded is much harder to dispute. With your next brokerage, make sure you start this process with the very first conversation...record every communication and save every email / text from day one. 

4. Due lots of due diligence before hiring your next brokerage. There are too many D/D items to go into here but you can always start with the Texas Real Estate Commission website and search for prior actions taken by TREC against your current or future brokerage. Then formulate your questionnaire. 

A legally formed contract does not have to be notarized to be valid and enforceable, including a lease agreement. DocuSign will work fine. 

Seems like this would be an "unseen" benefit that would be used by few and seen by even fewer. Can't see how the additional $5 per resident who "opted-in" would be worth the potential damage that might come from the towing service vendor doing a sloppy job or worse, damaging a vehicle. The tenant will come back to your management company to complain. If it isn't about the "kickback", charge $5 more per month and do something that would have an impact on a greater number of residents and make ALL residents feel more valued because they see that management is going above and beyond. Monthly social hours with hors d'voures, community BBQ, pool party/cookout, monthly car wash, monthly giveway's (gift cards, dinner with management, etc. for a small group (2 to 5...and post pics on your website) who provide feedback on what areas management can improve, etc. If you allow pets (and most people treat their cats / dogs as family) and a good portion of the tenants have pets, partner with a local veterinary clinic that will provide a free visual exam or similar service.   

Honesty/transparency IS the best policy...PERIOD. As was stated by others, many States are enacting statutes to stop the fraudulent activities of wholesalers (actually known as "assignors"). In Texas, you're required by law to advise the seller (and end buyer) in writing that you do NOT intend to close the purchase but will instead assign the contract to a third party. Putting "and/or assigns" behind your name will no longer suffice. Failing to do so can place you in a position to be sued (assuming you have assets or insurance) for fraud. See Fraud of Inducement. If you don't have funds, you should also include language in your purchase contract explaining this as well. Remember, if you have a contract and can't ultimately assign to a third-party, you're still responsible for closing on the deal unless you have a way to terminate the contract prior to the closing date using a weasel clause. 

I have been investing for 24 years and have been through numerous major economic challenges. My OPINION is this (your opinion can be different and I'm not looking for argument or debate...just adding my opinion). By election time, I expect us to be heavily involved in a war on one or more fronts across the globe with considerable conflict and tumult across the U.S. These events will shake all sectors of the economy and create pullback by consumers due to fear of the unknown. We'll likely see a significant recession...or worse. It appears we're already on our way to seeing national rent controls which means LTR's may not even be a safe haven. Over the last few years we've sold off most of our rentals as I'm not liking what I'm seeing and I want to be prepared for the worst but hoping for the best. 

Your first job will be to educate yourself daily on the investing strategies you plan to use. Find a minimum of 1 to 2 hours daily to research, investigate and deep dive into each investing niche you hope to use. You'll also need to learn about marketing, property values, repair costs, property management, etc. 

Your second job is to build relationships daily. Private money sourcing is built on relationships. But since private money is relational based versus purely collateral based, you'll need a track record to prove yourself. With no experience and no money of their own, it'll be difficult to find a PML who will provide you $50K to $100K or more due to the risk. You may find a hard money lender to help though. 

The alternative is to find a seasoned investor in the location where you plan to invest, work out an agreement with them to bring their money, time, expertise, relational capital, systems, etc. to a deal you bring to them, and let them show you the process from beginning to end. It's true you'll likely make very little money on those deals but your benefit will be expediting the pace at which you learn this industry.  

Smart money has an agenda...it wants to replicate. You'll have to convince private money investors you have the knowledge, skills, talents, expertise and drive to help their money do just that. 

There is considerable fear-mongering in your Hot Takes. 

1.  True. Since it's now required, most, but not all, agents will abide by the rules. 

2.  False. Prices always adjust but not because of commissions. Commissions don't dictate the intrinsic value of real property. 

3.  Partially True.  I suspect many full-time agents will simply become part-time agents and they'll find steady income elsewhere. 

4.  False.  Sellers are not greedy because they want to maximize their net. I suggest Buyers (well, more like buyer's agents) are greedy because they want the seller to pay for a service the seller doesn't receive. Paying someone to negotiate against me is indicative of a broken system. If I want a broker, agent, etc. to represent me, I shouldn't ask someone else to pay for him/her. This is indicative of a broken system. I sell about 40% of my investments directly to the end buyer who does not have representation. Twice this year, the buyers called to tell me they want my house and agree to my terms but their "representative" won't listen to them and they feel they'll lose the house. 

5.  Partially True.  Some sellers will get "screwed", many will not. Again, fear-mongering is the word of the day. I have yet to have a single complaint, in 24 years, from a buyer who worked directly with me with purchasing one of my homes. In fact, many call me back years later to list their home because they know I was fair and detailed. As stated above, not all buyer agents truly represent their buyers because they don't understand the buyer makes decisions, not the buyer's agent.  

Unfortunately, you ignored multiple red flags during the vetting process and now you're paying a price. The answer to your question will be found in your lease agreement and no one here has read it so any advice would not add tremendous value. If you don't thoroughly understand the agreement you signed with the tenant, take it to real estate attorney so you can get advice based on the facts of your lease agreement. Then have the attorney draft you a rock solid lease agreement that includes a binding arbitration provision and indemnities.