All Forum Posts by: Yoann Dorat

@Josh Corby, keep in mind that the "inspection contingency" is more of an exit door for most wholesalers if they can't find an end buyer. You shouldn't front the cost of an inspection or get contractor estimates as any "sophisticated" end buyers would hire their own vendors. 

Watch out for your expenses as a wholesaler, don't spend where it's not necessary. 

@Ed L. Land contract is a good tool but the problem is... you're not seasoning since the title is not transferred until the debt is fully paid off. Also if you go this route, keep the title on escrow with an attorney. 

I personally like to have the title transferred to my name with a promissory note and mortgage. That's something you can probably negotiate with the seller, it's not that expensive and you can secure them by using a third party servicing company. 

@Missy Corbin if you want to do deals virtually nationwide, your best bet is to build rapport with local wholesalers to help you out on dispo. 

@Emanuel Eyssallenne FLIP by Nick Ruiz, it's a little outdated but it's still a solid book and gives you a broad understanding of Wholesaling. Every new recruit in my company has to read it as part of their training. 

@Josh Corby the promissory note and mortgage gonna be between the seller and the end buyer at closing. You can ask your title company or attorney to take care of the paperwork. I personally handle that in-house as a service to my buyers and sellers but it's not a requirement. 

@Adam Silvers You would reduce your buyer pool, especially with the eviction moratorium out there but it's not impossible. In my market I have a buyer list of +8000 cash buyers, out of that 300 are my active "Preferred" buyers but only 6 guys are buying properties with unpaying or problematic tenants right now... it'll get better when/if the moratorium gets lifted... 

Btw, even if she doesn't have a lease you should check your state regulations, if she's been living there for 10 years and has been consistently paying rent... there's a big chance she'll be considered as a tenant. 

@Paul Winka It's a common practice, most sellers don't want their tenants to know they're selling and most tenants don't like having a whole bunch of strangers walking their home. 

in my company we only do 1 showing with serious buyers, our buyers have to put an EMD in escrow before any showings, we usually bring 1 or 2 backup buyers at the same time, just in case the first one doesn't perform, this process allows us to disturb the tenants only 1 time.

@Daniel Silvernail If you have a Propstream subscription, download a list of Cash buyers in your area (any transactions for cash within the last 12 months), skip trace it (you can do that within Propstream) and Cold call them. 

I disagree with what has been said by others on this thread, I think it's mandatory to build your cash buyer database first and then advertise to find deals, too many wholesalers lock deals under contract without knowing who they are going to sell it to. Build rapport with your buyers, ask questions and THEN go find some deals. 

@Bryan Stocklas I wouldn’t hire a lawyer just yet. There’s a big probability they’re just trying to scare you out, I’d just ignore it for now and wait to see if they’re really moving forward with their threat, then you’ll still have plenty of time to lawyer up if necessary.

I receive similar letters several times over the years, my attorney explained to me that most lawyer will send 1 mail and see if you bite, if you hire an attorney they will be “forced” to go back and forth a few times to scale up their fees. Most people are willing to spend a few bucks to get a letter drafted but it won’t go further than that.

That being said, next time make sure you got additional “exit doors” built in your PA, from what you’re saying you might need a refusal from the lender to get out of this one. Try an inspection contingency next time.

Just my 2cts.

@Pedro Amador If you're planning on buying from a wholesaler, they will be the ones drafting up the paperwork. They usually have a template and a title company they use for all of their closings. Most of the time you will only sign an "assignment of PA" as the original PA between the wholesaler and the seller will stay unchanged. You still need to review the original PA though as you'll be equally responsible for assuming the terms. You can hire an attorney to review the contract and make sure everything is right. 

An Attorney is the person you need to hire, no need to get a realtor involved as they usually bury the deal in paperwork/compliance and most wholesalers won't want to deal with them.