All Forum Posts by: Thomas Moran

Thanks all who responded on this. Always learn something from every post. 

@Wayne Brooks you make an interesting point...the assignment fee was not disclosed but it turns out it is more than the asking price of the property itself over 60k. The hard money lender says they have a problem with those margins and it should have been stated up front. 

Hi BP -

May or may not be in a debacle here so I wanted to consult the community. I am under contract via an assigned contract through a wholesaler. I just figured out the obscene margin that he is making (which doesn't necessarily bother me), and it begs the question why is the seller taking such a hit on equity? Is there something about the house I don't know?

I am going to sleep on it, but I am thinking about exiting the deal. He made me sign a contract that effictively states, "forfiting of earnest money does not release you from the contract, and you can still be forced to close". Now is this legal? I've never heard of anything like this before, and I've never done wholesaling. I had no intention on bailing on the deal, but it's very anxiety provoking to be trapped. 

Thanks in advance. -Tom

@Nate Marshall hey Nate thanks for the reply. I paid a $200 application fee, but the deal is falling through so I haven't done an appraisal or anything else yet. Per the advice on this forum I have started to shop around

@Wayne Brooks

My biggest fear is I close and somehow wholesaler #2 exercises their legal right to purchase and the property gets snatched from me 

Hey BP-

Title kind of explains it already, but I am working with a wholesaler to close on a property and he is urging me to close quickly because the seller went under contract with another wholesaler. I am familiar with the other party and they are not super ethical because I have worked with them before. The first contract has an affidavit recorded at the courthouse, but will this present any problems to me? 

How is this even possible/why would a seller knowingly go under contract twice at the same time. I searched the forums and couldn't find any similar experiences.

Thanks in advance.

-Tom

I realized that was actually the wrong image. This is one I was considering because it’s only 30k down. Worse terms though. 

@Andrew Postell

Great advice! I will check out that forum. Your mechanic analogy is spot on as well. 

@Wil Reichard

Thanks man! Still going to shop around a bit but that gives me a little more confidence! 

@Jay Hinrichs

I haven’t commited on the loan yet. Just an application fee. It’s 2 points up front. Not sure why it’s not on there

Hey BP-

Closing on my first deal soon. After talking to 5-6 different lenders, this is the one that was pitched to me the most favorably. Now I’m finding a bunch of hidden fees that add almost 10k to the loan. Am I just a noob and this is pretty standard, or is this a sh%# deal? 

@Account Closed 

Congrats! That is no easy feat. Thanks for sharing!

I am down 18 lbs since January myself. Sometimes it's a thankless, grueling existence going through the motions, but the confidence and health dividends that it pays you are priceless. 

Current goal is to get to sub 12% BF and to get something under contract by September!