All Forum Posts by: Travis H.

Howdy!

I am getting set up with wholesaling, and wanted to get your opinions, as investors who are purchasing assigned contracts from other wholesalers.

I have read that it is beneficial to closing the contract with the seller to have a very brief contract written in plain english as opposed to the longer official state contract (TREC contract in Texas).

I have drafted a version of this wholesaling contract, it has two or three clauses that will protect me in case I need to get out. My question to you is - are you folks comfortable with purchasing a contract like this, or would you prefer a TREC contract? If you are ok with a custom wholesaling contract, what clauses do you need in it to protect you after I assign it to you?

Thanks!

Just wanted to bump this thread.

I've got a rough draft of a 2 page contract drawn up, but I haven't shown it to an attorney yet. I tried to describe to him why I wanted to use a custom 2 page contract instead of the 8+ page TREC contract that is written in legal mumbo-jumbo, he didn't quite get it. I told him I wanted the 2 or 3 out clauses to be solid, but the rest of the contract to be very brief, and the whole thing to be in plain english.

One concern that he did raise that I haven't thought of was how would the investors you are selling the contract to want it to look?

Anyone have any input?

I had my student loans (I had three of them after graduation) consolidated to the Federal Direct Loans program. After I consolidated them, I contact the program administrators and requested a payoff compromise. Essentially, you can negotiate with them to payoff the balance at a reduced rate today in order to write off the debt. I owed over $13,000 and only paid them $10,000. In fact, in hindsight, I would have offered much less - probably something like $8000.

Not sure if this will work with private lenders, but it doesn't hurt to ask!

Here is Texas, mobile homes are regulated by the Department of Transportation - so it's not actually real estate, it is like buying and selling cars.

If you seller finance the mobile home to your buyer, and they become late or fail to pay, you simply reposes the mobile home, no difficult foreclosure proceedings.

I concur. I've listened to his podcasts and read his free book, it would be an unbelievable opportunity to meet and be mentored by someone of that caliber in your own city.

Very few attics are designed with proper passive ventilation, though. And when I say very few, I mean perhaps a dozen of the 300+ homes that I have conducted energy audits for in the last 2 years have had well designed passive ventilation.

Full disclosure: I only read the first 2 posts, there are a lot of replies and your problem is already solved so no reason to read them all.

I can say, though, that this is somewhat of an area of expertise for me because I am a residential energy efficiency professional here in Dallas.

That being said, here is what happens with those AC powered electric fans in Texas - your region may be different, we have extreme heat around here!

The reason that your fan broke is because almost all AC electric fan motors break after a few years (5 - 6 years average here in Texas). They do have a thermal snap switch to turns the fan on at 90 or 95 degrees, and shuts off when the temp gets below that, but here in Texas your attic is about 120 - 130 F for 3 or 4 months straight, so the fans never shut off. This is what causes the motors to break - they are just over worked.

Furthermore, the electricity that it takes to run the fan exceeds the energy that you save from cooling the attic - again, regional differences may occur, but this is at least true in the south - see this study done in Florida:
http://www.fsec.ucf.edu/en/publications/html/FSEC-GP-171-00/

You do get benefit of reducing strain on the HVAC system and ductwork if it is in the attic, so even though you are spending more on electricity, reducing the temperature in your attic is important because this will increase the longevity of your HVAC system (if it is in the attic).

So, the conclusion is that for energy savings, solar powered attic fans are superior. If you go buy a fan at Costco or Home Depot or where ever, the DC electric motor will have the same problem - it will be broken after 5 or 6 years (at least in the south).

My company sells Attic Breeze solar attic fans. I am not employed by this manufacturer, and I do not receive any payment / commission directly from them. Attic Breeze is manufactured in Texas (outside Houston I think?) and they make the best solar attic fan on the market. It pushes almost twice as much air by CFM than other fans (solar or AC electric), and it comes with a lifetime warranty. They are larger and quieter than most fans, and you do pay a premium for the quality that you receive - but you will never have to replace it again.

http://www.atticbreeze.net/

If you are looking for an attic fan for your homestead, then I recommend Attic Breeze, hands down no contest. For rental, flip, or other investment properties, you may have to consider the extra cost that you would pay to get it.

I'm in Texas, I've heard that lease options are very difficult to do here?

What you are recommending, though, is that I take a lease option from the owner with a clause that allows me to sub-let the home, then once I have a renter they exercise the option to buy the home?

Are you going to manage this property yourself?