All Forum Posts by: Thomas Moran

@Nate Marshall I’m not going to take a stance on wholesaling as a whole but I’m this specific case I totally agree. It makes me wonder if I could somehow let the seller know he’s being taken advantage of without getting sued. As @Jay Hinrichs said, I would feel pretty sick if someone was doing this to my mother 

Again - thanks to all who have chimed I’m. Grateful to have so many experts give their .02. 

Assuming theres not red flags in the inspection or appraisal I’m going to keep it rolling. You have given me some relief on the legal side of the deal.  The only other thing that would make me exit and just forfeit my 3k is if the lender says they are not going to finance that size or a an assignment fee, which I honestly wouldn’t be surprised if they did. 

@Kevin Cascante

Thanks for the reply. In most cases the earnest money is gone if the buyer backs out - which I understand. The problem with this one is (which I should have consulted an attorney prior, but hindsight is 20/20) is that it says any litigation resulting from the breach of this contract is covered by the buyer aka regardless of the circumstances I am stuffed, and must close. 

@Jordan L. Webster

The lender wanted the assigned contract and the original purchase of sale agreement to approval the funds, so I asked him for it.  

@Jordan L. Webster

I’m not trying to take a moral stance on this one way or another. Some people say wholesalers are snakes, some say they provide relief to desperate sellers and a valuable service to investors. 

The point i’d like to make is it seems as if he’s done something wrong in the hard money lenders eyes because he didn’t disclose his assignment fee in the contract. Now I don’t know if that’s the case or not, but maybe it would give me a bargaining chip with this guy. Maybe not. Either way I’ll chalk it up to experience. 

Ps. Doing a title search ASAP 

I have done comps. On the ultra conservative side ARV is at minimum 180

@Brendan F. Nagle

@Brendan F. Nagle

I’m doing an inspection, appraisal and title search. Unless I’m missing something I think the seller just got robbed of a lot of equity, unfortunately. What would I call a lawyer for (at the moment at least)? I’m hoping this never reaches litigation. 

Also full disclosure...this is my first investment property ever so it would have been stressful enough even with a licensed agent and something off the MLS. Oh well - you gotta have thick skin I suppose.

Again, thanks to everyone who has chimed in.

@Jared Jackson @Cole Raiford

Both of you make a great point and the ARV should be just shy of 200k after a light rehab. So it will be a good deal. At this point I don't want to lose sight of the forest for the trees and will probably proceed in closing. It just disheartening that the HML expresses disdain for the wholesalers transparency on assignment fees and the excessive margin on the deal.

@Wayne Brooks

It's interesting you say that because that's exactly what he did. It says offered at 107k but he paid 41k for it I found out later because my HML asked for both contracts. This seems like it should be regulated lol