All Forum Posts by: Kyle J.

A next day repair, considering the day it went out fell on a weekend afternoon, sounds reasonable to me. 

@Ari Bachrach You already know the answer to this, and it’s “No”.

He’s already PROVEN he struggles with the lower payment. No reason in the world to consider him for a place with a larger payment.

If you were to allow him to move into the place with the larger payment, you’ll just end up with more late payments (and possibly even non-payments).

Stick to your screening criteria. If anything, in this era of eviction moratoriums and delayed evictions, we should be tightening our screening criteria, not relaxing them or making exceptions. 

I read your post several times, and I’m very familiar with the wholesale process having bought wholesale properties myself and also been a private lender on wholesale deals. And it doesn’t work like you think it does.

It’s not like you can take a $200k house and the choice is either A) Have a Realtor sell it for $200k and your grandparents pay the Realtor a 6% commission, or B) Have you sell it for $200k and they pay you a 3% commission. 

First, in a “very hot market”, it’s highly possibly that a Realtor who properly markets that house could end up with multiple offers and your grandparents could end up selling the house for $205-$215k.

Whereas you, with no experience or buyers, and no ability to list on the MLS, are going to have a much tougher time reaching a wide market. And the buyers you do get are not likely to be retail buyers. They're more likely to be flippers looking for a discount so they can also make a profit. So would your grandparents really come out ahead if you had to sell to someone at a discount, even if you only charged a 3% commission?

And let’s say you somehow found a retail buyer. Who’s going to pay the buyer’s agent commission? If it comes from your grandparents (because it’s not likely to come from the buyers), well then you’re right back at 6%. (And by the way, if you don’t pay it, good luck getting any retail buyers with an agent excited about seeing your grandparents home.)

I could go on, and explain things like how a retail buyer’s loan wouldn’t cover your “commission” because you’re not a licensed agent so it’s not really a commission (which means they’d have to pay that out of their pocket!). And so much more. But hopefully you get the idea.

I wasn’t trying to offend you. Just educate you. Take the advice, or don’t. 

@Chandler Howell Sounds like this is all about you. (You want to wholesale it, you want the experience, you want to get paid, etc). What about your grandparents?

From an outsider looking in, given the facts you presented (they’re in a very hot market, they want to sell ASAP, you’re not licensed, etc), the advice you should be giving your grandparents seems clear...have them list their home with a licensed Relator who can put it on the MLS and expose it to the most amount of potential buyers.

I’m guessing you don’t even have any buyers lined up, and the reality is anyone who buys from a wholesaler is typically looking for a discount. Does that sound like it’d be in your grandparents best interest?

@Jin Zhang I’m guessing your offer was written on the standard California Residential Purchase Agreement form. That would have a section on Loan Contingency and Loan Contingency Removal. 

Just read that. It’s pretty self-explanatory. As long as your offer had a loan contingency, and it hasn’t expired or been removed yet, you should be okay. 

Talk to your Realtor if you’re still not sure. That’s what they are there for. 

@Nancy P. Don’t want to sound harsh, but here’s the reality:

Mistake #1 = Renting to a felon. 

Mistake #2 = Allowing the the felon to remain in the property and the person with the “better job” to move out with your permission. (What? You could have had a second person to hold accountable for the rent.)

Mistake #3 = Making a payment plan with him (that he then doesn’t even honor by the way). 

Mistake #4 = Failing to deal with this problem immediately and STILL unwilling to do what’s necessary to remedy it. He didn’t accept your offer to move out, you know you need to serve him notice, so what are you waiting for?

He’s not going anywhere unless he’s forced to go somewhere. I think he’s demonstrated that. 

I collect all money owed (first month’s rent, security deposit, etc) at the lease signing. If they don’t pay it then, we don’t sign the lease, and they don’t get the keys. In fact, I won’t even consider the property rented or stop advertising it for rent until that’s been done. 

You don't need "supreme knowledge" to know whether a box is checked or not.  Lol.  Come on, this is 100% on you.  It's your loan, your money at stake, and ultimately your responsibility.  Period.  

Interest rate and fees (including all the junk fees) are things you definitely want to look at when comparing lenders, but something people often overlook is the ability to actually close a loan.  

I've read so many posts on here from people who get to the final stretch just before closing and their internet lender (who no ones ever heard of before but promised them the lowest rate) couldn't close the loan because they overlooked something (i.e. small detail that was previously disclosed by the borrower, property type didn't qualify for the loan they had applied for, etc) and the loan was going to fall through with no time to reapply with another lender before the contract expired.  

Some times the cheapest rate just isn't worth it if the lender can't actually close the loan, and you're better off going with someone you know (from prior experience, referrals, etc) can get you to the finish line without any hiccups.  

Just my two cents.

You have to be careful how you word it.  You're not kicking her out.  You're simply offering to let her out of her lease (if she has one) without penalty and she no longer enjoys being a tenant there.  Basically mutually agree to go your separate ways.  

Just like if she was a customer at a restaurant that she no longer enjoyed eating at.  You're not refusing to serve her.  She just has the option to not eat there any more.  

It's her choice though.  Continue to stay there, or not.  Nothing racist about that.