All Forum Posts by: Will Stahl

@Ayman Elmasik thanks for the response. Those 40K return for spending 10K is pretty great in my opinion. If you don’t mind me asking, how much would you allocate per month for PPC? I’m wondering if $1000 a month would be enough to create a buzz.

Hope you’re recovering well from Harvey! 

@Ayman Elmasik

Wondering if you ventured into to PPC and SEO. Care to give an update on you experience?

Thanks!

Hi everyone,

I've just started my real estate wholesaling business and have my first meeting with a lead this Tuesday in Westchester, New York. I'm meeting with an attorney on Monday and would like a template to give the lawyer to review. Do any of you Wholesalers want to share what you include in your purchase contract? I plan on assigning the contract to another investor if all goes well. If anyone is kind of to message me a contract they'd recommend I'd really appreciate it . 

I understand anything posted here is not considered to be legal council.

Thanks everyone for all of the great feed back!

I got a hot lead by driving for dollars and am meeting with her this Tuesday. The property looked like it was in rough shape from the outside. She sounded like she was thinking about listing the property but I'm hoping to convince her otherwise. 

@Sean OToole Thanks a lot Sean. I'm going to look into the services you mentioned. Best of luck with your business. Hope you make your way out towards me one day!

@Sean OToole Sounds like you have a great site but I live in NY which isn't in your area. Can you speak well on any lead source companies in my area? Thanks Sean! P.S Come take your business to New York State next!

@Bill Krayer Below are some of the benefits that the promembership offers. I honestly don't take advantage of most of the benefits. The property calculator and report generations are something I've already used. Once my website is up I'll be attaching it to my signature which is only available to members. Also if you have a deal you can post it in the marketplace to help advertise - which is nice if you're wholesaling. The main reason I became a pro member is to support BiggerPockets. I've received so much from their free content I have no problem spaying them a few hundred dollars a year. I want them to have it so they can continue to improve the community.

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@Bill Krayer I like the comparison to option contracts. When I speak with my lawyer I'll use that comparison to get my point / intent across. I wonder if there a special licences that are required if your business main objective is to assign contracts to others? Again - for us wholesalers just starting out we shouldn't let this paralyze us from moving forward - most of all we need a deal first! Just like everyone else here, I want to be 100% clear and upfront with my client and convey to them what exactly I am doing so no one else like they're in the dark, being taken advantage of, or getting the short end of the stick. 

I think most of us are in agreement that it's just good practice to have your RE License when conducting wholesaling (I'm currently in the process of getting mine) but the below article discusses current legal actions being take against wholesalers in the state of Ohio who don't have a RE license. Billy, I'm sure there are different examples on bigger pockets that talk about wholesalers encountering lawsuits. 

https://www.biggerpockets.com/forums/93/topics/184...

The two main questions I'll be asking my lawyer are:

1) What language can I have in my contract that will help protect myself from a potential lawsuit. In the contract should I have a clause that states that I'm likely going to assign this contract to another, potentially for a higher price? 

2) What am I allowed to say on my website, direct mail pieces, and to my customers regarding their situation? Can I address the fact that they are behind on payments for their mortgage or taxes?  Can I provide information regarding what happens if the bank forecloses on their home? (such as their credit being hurt, losing the current equity in their home, the long drawn out process) I don't know where the line is drawn.

@Bill Krayer My concern mainly stems from two places:

1) If I'm in the business of getting properties under contract with only an intent to assign the contract to another party it can be argued that I'm committing fraud since I'm entering a contract with no intent to exercise it. 

2) When I perform the actions described in bullet point 1 it can be argued that I'm performing a net listing because I'm agreeing on a price with the owner of the property and then I am agreeing on a separate price for a higher amount with a 2nd party.

The wholesalers I know in my area perform a double close so they don't have to worry about this since they are taking 100% ownership prior to listing and selling the property.

@Tom Gimer and @Steve Vaughan

Thanks for quick responses and great information. I'm definitely going to amend my articles of organization if applicable in my area and I was actually just advised by a tax accountant about setting up my tax structure as an S-corp. I will be doing more research on both.

@Will Barnard Hey Will thanks for the responses earlier. I think that's a GREAT tip you provided about giving them a cash offer and a full price offer to list on the MLS. Now I'm thinking that I want to model my business off of that idea. My website and mailers can convey that we provide both offer amounts, so now I have a wider audiance for the services I offer - both cash sellers And people looking to list on the MLS. Is this how you go about conducting your wholesaling business advertising or do you focus on the cash offer and just tie in your full price offer at the end as sort of a side thought?