BiggerPockets

I have always wondered if wholesalers hurt us buy and hold guys when dealing with banks. I am sure there are some good wholesalers our there, but the majority that I have had contact with are useless noobs or slick characters. It would seem to me that when a bank sees me write an offer Jeff Koenig and/or assigns, that it might hurt my chances because of all of the bums that have burned them in the past trying these complicated closings or other tactics.

When an REO is listed on the MLS I write offers through an agent to the bank. My name is jeff koenig. I write the offer jeff koenig and/or assigns so that I can move it to an LLC. The POF is in my name at the bank as we only put one property in each LLC.

David,
I am not sure what you are talking about or if it is even english. Buy and hold is the type of investment strat I use. We are in the REO forum so we are talking about buying REOs. I have purchased six REO's in the last year using and or assigns. Are you asking and question, answering a question, or commenting on my post?

sorry I reread your post and see that you aren't wholesaling. I was under the impression that banks won't allow any assignments at all. I think that's what David is getting at.

Hi Jeffrey,
I am a newbie! Wholesaling seems to be the easiest way to start. Can you elaborate on the bad experiences you have encountered or know of...Maybe I can avoid being a nobb. lol! Thanks!

A good wholesaler will bring a great deal to another investor. To be a good wholesaler though you need to know the markets,negotiate well with sellers and buyers and spot a good deal from a mile away. Problem is as Jeff stated there are those who don't bring anything to the table.

To be a good wholesaler you need to:

1.Do due diligence. You need to do as much due diligence as possible.

2.Evaluate the deal as thorough as possible. Which means finding out what the market is like,what the ARV is and what the estimated repairs are. This separates the men from the boys.

3.Negotiate with sellers and buyers. Your negotiation skills need to be spot on if you want to not only get a good deal going but to sell a good deal to buyers as well.

4.Be a good marketer. Which mean not only marketing your deals online but offline as possible. Combine online and offline marketing is key to be a successful wholesaler.

If you can master those aspects than you can succeed in wholesaling and you can build a reputation that will help you your business in the long run.

And that's what separates good wholesalers from bad ones.

Thank you for the Response. :D Especially to Mr_Investor for giving me pointers. It is much appreciated.

I dont know how you can do Your Name/ and or assigns? So what your saying is when you make an offer your going to put the home into who's LLC? If your doing assignments then my guess is that your LLC has about $0 in it. Banks want to see proof of funds? How do you get around this? I want to believe what your saying but everyone knows banks do not let anyone assign and you need proof of funds to even get the home under contract.

Are you fooling the bank with a phony letter? Doing and or assigns is the poor mans way of wholesaling real estate.

Whether you are an investor, agent or whatever-if someone is operating in an unprofessional manner it can hurt all of us in this industry.

It takes a lifetime to build a reputation and only a moment to ruin it.

Do they use escrow companies in Wisconsin. Typically, I just write offers in my name and get escrow to do a "courtesy amendment" transferring the property to the entity of my choice.

Most of it don't take issues with it, they ask my operating agreement though.

The other option is just write the offer in the entities name and attach your own Proof of Funds, I bet most people wouldn't have issues with it.

To answer your other question, I do think beginner wholesalers and investors hurt the industry (aka give investors a bad name to sellers), but everyone was a beginner once.

Thinks beginners should remember:
- Don't put a deal in escrow if you are not 99% sure you are going to close
- Be careful with the weasel clauses (I know many gurus advocate for this, but I think it's bad practice)
- Use a real earnest money deposit, $1 doesn't work for banks
- Look at most properties before you blast an offer, unless you really know your market
- Remember this business is about hard work, many new investors think making the big bucks in real estate happens quickly and easily (I wish)

When buying investment property it is always wise to write it as your name and or assigns.

Please explain to us why this is wise? Banks do not allow "and/or assigns" in most cases, and it makes your offer look weaker. If your intention is to buy in an LLC, form the LLC first and write the offer in the name of the LLC. If you don't get that property, go on to the next writing the offer in the same LLC.

Most people on this board know I am an experienced investor and REO's is a strong point for me. I NEVER write and/or assigns and have my entity already to go to make my offer in.
I have written a few offers in the commercial world with my personal name and/or an entity to be named later and then stipulated inside the contract that I was to be a majority owner of the entity to let the bank knwo I was not attempting to assign the contract. If you do want to assign it (wholesale it) just double clsoe and use transactional funding. So much cleaner and easier than all the garbage inside of contracts.