All Forum Posts by: Guy Gimenez

Hey everyone, me(19) and my partner(17) are new to wholesaling, we got a good seller finance property under contract and needed an EMD lender and ended up getting one. In our contract with the lender there is no timeframe stated for when the property needs to close by and the lender needs to be paid. However, getting the house sold has taken a little while longer than we expected due to a survey requested by the buyer and surveyors in the area being booked up and unable to get to the house. I now have the EMD lender blowing up my phone saying he needs to get paid and if I dont pay him by a certain period or pay more money due to the length its been he is going to "blast" me on his social media and stating he is the "last person I want to mess with", is this allowed? and how do I go about dealing with this.

If exactly as you say, your lender is either new/inexperienced or used some version of a form found on the internet rather than have a solid, attorney drafted agreement. It defies logic that the lender would not have a firm date by which they must be repaid. Can the lender "blast" you for following the terms of your agreement? Yes, but he/she could also face consequences (litigation) for defaming a person in writing (libel).

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You'll need a trusted, well paid individual locally who has a background in construction and can oversee the contractor. This individual will need to be on site at least 3 to 4 days a week to make sure the crew is working daily on your project, that the work is being completed properly and that materials are not being stolen by the contractor, his/her crew, or by night bandits. Ring or Blink cameras will be your best friend. Remodeling is risky for many reasons, not the least of which is good contractors are very hard to find. Investing/remodeling remotely is many times riskier. Your contract better be rock solid and not some 2 page junk construction agreement you find on the internet or from some guru who has never actually completed dozens of construction projects.

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You just got a college education in investing and I doubt you'll ever again place trust in others who could clearly care less about your money. Flipping is risky. Flipping long distance without having solid systems and processes in place is EXTREMELY risky...as you now know. Trusting your insurance provider is like trusting corner store sushi. It's just not a good idea. After suing Farmers Insurance for 7 years and having to hire an attorney to deal with a title claim that the underwriter's counsel admitted was a valid claim, I know of what I speak. Take your hit and learn from it.

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Quote from @Gary Leonard:

Quote from @Account Closed:

Quote from @Sean Bramble:

Heard about this on Pace Morby's Youtube channel - it's a zero down creative strategy that works when 1) the seller is open to seller finance, but 2) needs a sizeable DP for various reasons (i.e., pay off their existing loan, closing costs, and/ or put some cash in their pocket, etc)

There are 2 "legs" of the transaction. My understanding is it works like this:

Example: purchase price = $1M, seller still owes $200K, seller also needs addl $150K cash at close for whatever reason. But the buyer wants the property at zero down.

First leg:

-- Buyer secures a loan (1st position) for $350K and sends to title company (this is the amount needed to pay off sellers loan + their required cash at close)

-- Buyer also sends $650K cash to the title company (can put in your own cash, or do a temp loan from a transactional lender)

-- First leg of txn is now complete, and the $1M stays at the title company (this is bc you customized escrow instructions upfront to instruct them how to disperse money before escrow began)

Second leg:

-- Buyer and Seller enter into an agreement through an LLC which allows them both to be on title, and seller agrees to seller finance the buyer $650K of the purchase price (on whatever terms they agreed on). Being on title protects the seller from the buyer defaulting - it seems this is an alternative to "officially" putting them in a 2nd position)

-- Title company sends seller the $350K they require

-- Title company sends buyer back $650K (which they can use to pay off their transactional lender if they used one)

So now the seller is happy bc they got the $350K they needed, the buyer is happy bc they acquired a property for zero dollars out-of-pocket, and from what I understand the 1st position lender is happy bc due the LLC arrangement the seller finance component is not technically considered a second lien on the property. Plus all parties were protected throughout the entire transaction through the title company.

Have any of you completed a deal w/ this method? Am I understanding this right? I would love to hear your thoughts on the pros/ cons/ risks involved

Your comment: "Buyer and Seller enter into an agreement through an LLC which allows them both to be on title"

Your comment: "Being on title protects the seller from the buyer defaulting"

That isn't how things work. The buyer can still default.

Wow, that's one of the riskiest transactions I've ever heard of. Having someone on title with you that you don't know, as a "business partner" puts you in lawsuit risk for anything they do. Nope, wouldn't do it, "wouldn't be prudent" as George Bush Sr used to say.

WHOA! "due the LLC arrangement the seller finance component is not technically considered a second lien on the property."

Either you misunderstood what was said, or you are extremely likely to get yourself into all kinds of grief following that line of thinking.

No No NO! It's not "risky" as most on this thread make it sound.

It's not a "risky business" opportunity because the "LLC" must only be created for that transaction ONLY (w/ a partnership agreement with the seller). NO OTHER BUSINESS practices should be conducted by either party except for that property only. You rather have an LLC agreement in which the seller holds the guarantor of the LLC (of which is the buyer) of the transaction.

I don't even know where to begin with this. Just wow. I especially love the "It's not risky" part.

1 Vote

Quote from @Andrew McGuire:

Quote from @Guy Gimenez:

The "old way" (fundamentals) never go out of style. It's like saying buying at retail and trying to sell at high, high retail is a good idea because the old way is no longer applicable. I'm not trying to be argumentative...I've just seen many Andrews in my time who think they can use creativity to overcome the the basics (fundamentals). The horror stories are many but it's best to allow someone to get spanked financially because they learn better from their mistakes than from the mistakes of others.

There were a lot of retail stores that thought that was fundamental until Amazon came and wiped them out as well.

Actually, those businesses that disregarded the fundamentals, including the need to adapt to changing market demands and technology advances, are the businesses that failed. With no disrepect meant, it's clear you believe you're smarter than the generations of investors before you and you have figured out the secret sauce to buying at retail, having little cash flow, but still making it a great real estate deal. I wish you much luck Sir.

1 Vote

The housing market in Corpus has cooled since last year when interest rates spiked. Add into the equation the cost of materials and it makes sense that builders are finding ways to cut overall build costs and one of those ways is to buy land cheaper.

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5 Votes

Most everyone is excited about investing...until the realities hit them squarely in the face. I've seen this kind of stuff posted for more than two decades and still can't believe that folks think it's a good idea. I truly hope it works out for you. I am all but certain it won't. Way too many red flags that "excitement" won't fix.

2 Votes

Quote from @David Nolan:

Quote from @Guy Gimenez:

Quote from @David Nolan:

Hey Chris,

I am a student of Ryan Kuhlman's. I signed up for his Flip Coach program a few years ago. I first took a National Mentor program, Clever Investor, and it was horrible! They assigned some so called mentor to me out of Tampa. They were not even in my market. I spent a good amount of money and never got a single deal. It was a complete waste of my time. I came across The Flip Coach from a National REIA webinar when Ryan Kuhlman was President of NREIA. After speaking to Ryan and speaking to a couple of successful students of his, I joined his program. Best thing that ever happened to my Real Estate investing career!! The Flip Coach program has the A to Z of information, but more importantly Ryan really motivated me and made sure I understood the actionable steps I needed to take. He got me over my procrastination and fears! Now I do 15-20 Wholesale deals per year and last year did my first two fix and flips. I know a lot of people think they can watch YouTube videos, spend time with Real Estate professionals and network, and they can get started investing in Real Estate. But I know a lot of people who tried on their own like this and have failed and are still failing. I made back my investment in the Flip Coach program 10 times over! I highly suggest you check it out. Hope this helps.

HUGE. RED. FLAG. If you give any credence to this type of response, you're in for a long painful real estate investing experience.

Nothing painful about my investing experience Guy. Not sure why so negative unless maybe you had a bad experience yourself. Yes, there are a lot of so called "gurus" that are total crap. But when someone throws this kind of shade is usually something personal. Of course I support my mentor because he is a big part of my success. But I dont need to convince you or anyone else of anything. I came here in support of my mentor. Thats it.

I don't know your "mentor" so it's not personal. My comments are simply based on experience and common sense.

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Fort Lauderdale, Florida

Quote from @Ryan Kuhlman:

Quote from @Guy Gimenez:

Quote from @David Nolan:

Hey Chris,

HUGE. RED. FLAG. If you give any credence to this type of response, you're in for a long painful real estate investing experience.

Hey Guy. You must not have read any of my responses nor simply looked me up online. I have had one of the most successful mentor programs for many years. I did take a few years off since COVID, but I can tell you David and all of the others on this thread are very real, and are doing very well in real estate. I have probably 10 other students that failed at Clever Investor program like David. Its not a HUGE RED FLAG when someone tells you about their experience. I am not saying all of my students have been as successful as he has, but I can tell you that when my students talk about me they really advocate for me and my program. Sorry you have a problem with that, but you should do your research before blasting people that you dont even know.

Well, if you say he is successful than he must be, right? I'm not blasting you...it appears you've done that to yourself. I could care less about your self congratulatory commentary. I've seen plenty of you in my 24 years of investing and many of those had skeletons in the closet. So please spare me the "I'm legitimate" routine. When a "successful investor" joins BP, or any other page for the SOLE purpose of promoting a guru, it's a red flag. That is a fact. You may carry on now. Thank you.

1 Vote

Fort Lauderdale, Florida

All Forum Posts by: Guy Gimenez

Guy Gimenez has started 48 posts and replied 1982 times.

Post: Trouble with an EMD lender

Post: Managing General Contractors Remotely

Post: What a mess!! This is a whole new education of what NOT to do, and what to READ!!

Post: Anyone done a "Morby Method" deal? Zero down creative strategy

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Post: I'm Buying Negative Equity Properties and I'm Excited About It

Post: I'm Buying Negative Equity Properties and I'm Excited About It

Post: Is Flip Coach by Ryan Kuhlman Any Good?

Post: Is Flip Coach by Ryan Kuhlman Any Good?