All Forum Posts by: Timothy Franklin

@Nicholas L. This is also apparently going to "be a thing" with airbnb portfolios as I am currently working with another owner ready for retirement. We are helping with his accounting, business valuation, and exit. The property alone is worth a million but is generating an estimated $250k/ yr with the ability to add 3 units on site and acquire an additional 13 acres. This one is going to presented as a value add but is not distressed in any way. I think too many people get stuck on distressed, when there is a whole generation aging out that will take fair prices for their assets. A new owner with more capital can easily come in and decrease vacancy rates and increase supply to realize a 2-3x revenue. (Minimal competition, high demand, and 20 year operating history with repeat & longterm clients)

@James Wise so you would rather pay higher interest rates to the bank? I could have sworn everyone in real estate was trying to get the most back on their dollar, but that could just be me I suppose. But I guess if you want to give a bank $375,000 upfront and $10,871 a month for 30 years you are welcome to. This deal is not exclusive by any means, just trying to help people get deals done.

@Nicholas L. No they are not distressed in any way. The properties are listed on MLS, the owner is a business connection from an alternate venture. I simply recommended the seller finance structure based on the current market rates to make it easier to sell since he has better rates than can be gained financing traditionally. The entire portfolio is also actively booked with guests with the busiest season coming in the beginning of the year (bookings already in place).

The seller intends to exit this portfolio and reinvest.

Hey all, I'm new to wholesaling and my first deal is proving challenging, I'm looking for advice or potentially a j/v on dispo. It is a 3 unit airbnb portfolio with each unit in a different city. Would it be better to dispo each location independently or as a whole, and if done as a package deal does this fall under commercial or residential? The portfolio is turnkey/ fully furnished and active. The deal is structured with partial seller financing ($766k) below market rates (varied on each unit). I'm light on capital so paying a mentor isn't an option, but happy to split revenue (pay as I learn).

The first thing you should consider is are you able to make financing pass underwriting? Not all seller financing is good financing, and certain types of financing are more risky than others.

I have a connection dealing with this exact type of issue, funds have to be in escrow by the 18th to prevent default. I'm still trying to help them, is there still time?

Thanks Don, that is both enlightening, and created new questions as I have 2 potential deals that could be classified as commercial, both are airbnb portfolios, with one being 3 singe family units, and the other being a single site with multiple units (11 units,themed resort style). I have been trying to avoid the coaching programs (limited capital) but it seems like I might need one if (and/or)  not a lawyer on retainer to sort  through it all. I would J/V but not sure who I should approach on that. So many questions, and so many opportunities lol.

Thanks again Jacob. I have a contract template for a double close, but not for an assignment contract, I will have to source that for each of the locations we have deals. Thanks.

Thanks Jacob. Could you detail the process for a traditional wholesale and any monetary requirements as you understand it? We are looking to wholesale outside of our chosen market to help build capital for projects within our chosen market (Louisiana) as I have potential deals in other markets and am not confident in how to proceed with them contractually, (don't want to be stuck with a bill I can't handle currently and also want to ensure I'm operating correctly). As far as ethically that is part of my nature and I don't care for the aggressive (potentially predatory) strategies discussed by others, but I see value in offering a transparent and convenient service with lower costs and faster turnarounds than traditional MLS transactions.

Our business plan actually includes rehabbing distressed properties and conducting off-market transactions with owners currently occupying distressed properties using equity to reduce the out of pocket costs for the seller/buyer and to simplify the process. The market we are in currently is ideal for such but we need the initial capital and assets (rehabbed) to begin execution on the model.

Hey all,

I would like someone who is experienced in wholesaling to verify the accuracy of my understanding of the wholesale transaction. I understand the process as follows:

Step A: wholesaler places property under contract. (A-B)

Step B: wholesaler places buyer under contract (B-C)

Step C: Closing
Wholesaler (or PML) wires title company (not the buyer here) The funds for Step A contract). Buyer wires funds for Step B to title company). Title company processes transaction and finalizes sale. Title company issues check to seller. Remaining money (less title fees) in escrow is returned to wholesaler (less PML funds and fee if used) with the remaining from the Step B contract.

The reason being is that it is illegal to sell a property you do not own. From my understanding you cannot place a wholesale contract and have no funds to complete the transaction using only the buyers capital.

is this accurate from your experience or is there anything missing? Thanks in advance.