Well-executed wholesale deals feel like well planned checkmate.

89 Replies

Originally posted by @Brian Gibbons :
Originally posted by @Jamal Lee:

...for them to pay six grand commission when they could've  paid 3% on a $30,000 house which is $900, how's your six grand paycheck feel?

@Bill Gulley

Valid points on both sides just one small point to correct.  Real Estate Agents do not work on 3% or 6% commission on the low price properties.  Most likely a flat fee commission of $2500.

When I first started buying houses in Michigan I saw banks sell houses for $100 and pay $2500 flat fee commission + $1000 selling agent bonus after also paying $1500 property management fee to watch the house during the 6 month right of redemption. 

@Richard Dunlop

I'm well aware of that Richard, I didn't say that, Brian Gibbons did.......  

Yes, there are minimum costs to dispose of a property. :)

Originally posted by @Mary B. :

If you build it they will come. The haters that is. 

 @Jamal L.

Notice that there's never a licensed attorney that goes on the war path about whether wholesaling / assigning a contract is legal or not. lol, just the others... 

Kudos,

Mary

 heh

Originally posted by @Bill Gulley :

@Richard Dunlop

I'm well aware of that Richard, I didn't say that, Brian Gibbons did.......  

Yes, there are minimum costs to dispose of a property. :)

 I left a prior tag in when I was deleting from a bulky post. It could look like I was quoting you and I was not. Sorry. 

Looks to me like we might have folks who have preconceived notions about something someone will post and they are caught in biased thinking before they ever read a post, or, they read into it where their bias takes them, instead of actually reading what is said.

If you only come to do battle in the forums, you're not going to get much out of them. I am not a persuasive writer, my posts are not written to bring anyone over to any personal point of view. I'm more of a technical writer, no fluff, no puffing, no bragging, just plain English on a technical, factual style of communicating, just as you might hear in a college lecture on a subject. 

I can also be very boring, I know. Education, a formal curriculum of study, is the best way to learn a profession in arts and sciences, business and real estate are both an art and a science. If professional degree programs were better taught by those only having ideas, we wouldn't need universities or colleges, we could just have a local bar to acquire knowledge. BP is an open social site, it's the local bar.  

My writing style is not intended to be far off from instructional, if I get into something which becomes more of an opinion, I do try to make that clear. You will see me say "I think" or "I don't think" or IMO when I get into that realm. Otherwise, I'm on point backed by education and experience. 

For those who don't want to hear anything contrary to what they think, there is an ignore button to the left of my posts, please use it. You may get lost in a thread and not understand following posts made, but you can certainly stay and enjoy the forum chatter that underscores a more narrow view of a topic to your liking.  

For the rest of you, please simply read and don't skim anticipating what you think I might say. I've been misquoted, had wrong implications interjected into what I said and comments completely contrary to the point being made. 

All I ask in return for my time here is an open mind and willingness to understand some issue that will likely 1. keep people out of trouble, 2. save them time and money, 3. save their reputation in this industry, 4. make you more successful. 

I donate my time here, my fees for consultation at one time were on par with CPAs and more than some attorneys in my area. You're getting the same information and opinions others have paid for, some paid a lot. I'm retired now. I don't blow smoke at people in an attempt to get them to do business with me, I have no agenda here other than teaching, besides, few here could afford me anyway.

This RANT was brought to you by previous posters in this thread, commercial free and not really for your enjoyment. 

For those still interested in understand the points made, a simple review:

1. Why is real estate different than selling shoes?

2. What social impact does real estate have in our society and why?

3. What are the economic aspects of real estate?

4. Why is real estate regulated?

5. Why are property owners protected more than buyers in our law?

6. How are services valued in business? BONUS QUESTION!!!!

Multiple choice. 

A. Services are valued in our economy based on how hard the servicer provider worked

B. Values of services are determined by comparable services in an industry

C. Services can be what every someone agrees to pay

D. Services have no value in our economy

7. What basic functions do Real Estate Agents provide?

8. What basic functions do wholesalers provide?

9.  Does taking title to a property and selling it different than wholesaling?

10. Are real estate investors or operators held to implied terms in a contract with regard to services being carried out with reasonable care and skill, in a reasonable period of time at a reasonable price as described in the Goods and Services`Act 1982? Yes or NO ?

If you got less than three right, you're as dumb as a rock

Got 6 or less, you need to review

Got 7 right and you're catching on

Got number   6 correct, you get it

Got 8 correct and you're pretty good

Got 9 correct, you can move to the head of the class, you're a pro.

Got all 10 correct, you can walk on water, give blessings and kados to others (LOL) :)   

     

Great story man congratulations on the deal.

Originally posted by @Davetta Johnson-Ajavon :

And this...  is the very reason I want in...

 Welcome to BP!

You posted after my last post, so wondered what you were saying in this post, the reason you want into what? Did you take that little quiz? LOL

Not to get off topic, but how are you going with that multifamily acquisition goal with ten days left? I like your goals for the purpose you described. Thanks for your service! :)

@Brian Gibbons ,

That lesson comes in semester #2 for newbie wholesalers. :)

Ok, so you did good, got a deal done. However consider you took 20% off of a $30K deal from someone's grandmother, someone in their last stage in life. 

Nauh ! I do not think the young man was fully conscious. For some reason the word,

"common" is on the tip of my tongue.

Come on now, he is ready for lesson #2 and so should everyone else be. 

Yes you did good, congratulations !........................... Now step over here and have a look at it from this angle. Got it?

Now tell me how are you going to do it better next time?

@Gilbert Dominguez

I do not believe @Jamal L.

still thinks he did anything wrong.

Maybe he could return $2000 to the seller?

He still earned $2000 for posting an ad on Craigslist...And avoided a seize and desist order for brokering from the Dept of Real Estate (if he is not licensed)

See

http://www.dllr.state.md.us/license/mrec/mrecdodon...

An unlicensed person MAY NOT:

  • Prepare promotional materials or ads without the review and approval of licensee and supervising broker.
  • Show property.
  • Answer any questions on listings, title, financing, closing, etc.
  • Discuss or explain a contract, listing, lease, agreement, or other real estate document with anyone outside the brokerage.
  • Be paid on the basis of real estate activity, such as a percentage of commission, or any amount based on listings, sales, etc.
  • Negotiate or agree to any commission, commission split, management fee, or referral fee on behalf of a licensee.
  • Discuss the attributes or amenities of a property, under any circumstances, with a prospective purchaser or lessee.
  • Discuss the terms and conditions of the real property offered for sale or lease with the owner of the property.
  • Collect, receive, or hold deposit monies, rent, other monies, or anything else of value received from the owner or lessee of the real property or from a prospective purchaser or lessee.
  • Provide owners of real property or prospective purchasers or lessees with any advice, recommendations, or suggestions as to the sale, purchase, exchange, or lease of real property to be listed or real property presently available for sale or for lease.
  • Hold himself or herself out in any manner, orally or in writing, as being licensed or affiliated with a particular company or real estate broker as a licensee.
  • Contact the public concerning the availability of real estate brokerage services unless an inquiry about a specific property is immediately referred to a licensee.

Elizabeth H. Trimble
Assistant Attorney General
Counsel to the Real Estate Commission

This is all a matter of opinion and they are the cheapest of commodities, everyone has one, therefore they aren't worth much. It intrigues me that people will ensue the smallest of issues rather than try to stand a moral ground on a macro level which would have a better chance of trickling down oppose to the opposite way around. If we want to discuss atonement let us atone for the millions of men and women who worked for nothing to build this nation. A cause highly worth fighting for if we are really fighting for those that were wronged. Who's free labor built a nation of wealth and left their decedents with the debt they inherited as well as the pseudo logic of white supremacy. From this morally correct society we live in. Lets have atonement for Redlining where there was predatory lending which caused for the economic seesaw to be tilted even greater towards one side. Lets atone the millions of subprime lending victims who were targeted by banks that did the reversal of redlining which was just as destructive and disproportionately affected African Americas. Which has created a feeding frenzy of REO and Foreclosed properties that has caused the greatest down spiral in property values since the great depression. This market that just about every investor on here has profited from, was a product of the biggest Ponzi scheme performed by the banking industry and no one seems to see fault in how the market has left them a greater chance to profit. And who were the majority of the victims in this well executed checkmate the government planned out thoroughly? inside job documentary

Originally posted by @Brian Gibbons :

@Gilbert Dominguez

I do not believe @Jamal Lee

still thinks he did anything wrong.

Maybe he could return $2000 to the seller?

He still earned $2000 for posting an ad on Craigslist...And avoided a seize and desist order for brokering from the Dept of Real Estate (if he is not licensed) 

This is all a matter of opinion and they are the cheapest of commodities, everyone has one, therefore they aren't worth much. It intrigues me that people will ensue the smallest of issues rather than try to stand a moral ground on a macro level which would have a better chance of trickling down oppose to the opposite way around. If we want to discuss atonement let us atone for the millions of men and women who worked for nothing to build this nation. A cause highly worth fighting for if we are really fighting for those that were wronged. Who's free labor built a nation of wealth and left their decedents with the debt they inherited as well as the pseudo logic of white supremacy. From this morally correct society we live in. Lets have atonement for Redlining where there was predatory lending which caused for the economic seesaw to be tilted even greater towards one side. Lets atone the millions of subprime lending victims who were targeted by banks that did the reversal of redlining which was just as destructive and disproportionately affected African Americas. Which has created a feeding frenzy of REO and Foreclosed properties that has caused the greatest down spiral in property values since the great depression. This market that just about every investor on here has profited from, was a product of the biggest Ponzi scheme performed by the banking industry and no one seems to see fault in how the market has left them a greater chance to profit. And who were the majority of the victims in this well executed checkmate the government planned out thoroughly? inside job documentary

Jamal,

So many times investors or wholesalers get a bad wrap.  Through the years I had people call me back the day after agreeing on a price and signing the contract wondering if I just made them sign their house away.  Even after I thoroughly explained what was going on. Sometimes people in distressed situations listen to the wrong people, like a family member whose never sold a home or a skeptical friend.

However when you present yourself as the expert and you genuinely make it about the seller and their best interest, it shows to people.  Jamal keep making it about the people and not so much about the dollar and your referrals and overall business will continue to prosper. 

Realtors also will try to sell the house for as much as they can get to make more on closing. Even if the house won't sell. Or they will buy it and sell it for more then they offered you to buy it. My grandmother was taken for that ride by her realtor. A real snake. So no, I don't trust realtors.  

And if you don't go through them, then they get butt hurt because they're losing out. It's Jokers like that that caused problems for people like Jamal and other investors that have a heart for helping others and finding creative solutions to people's problems. Sure you make some scratch in the deal, but isn't that why we all love real estate? There is money to be had, no matter what your angle is. Right, @Tom V. ? You, Jamal, could have cleaned them out, but that's not you. 

Great reply @Andre Key

 and that gives me an idea if I ever do a wholesale deal. Contact the home owner after signing the contract to reassure and go over the whole process again. That speaks volumes when they think you have them on your mind. It also eases their fear that you might be someone they can trust. 

Have there been bad wholesalers in the past? Sure, just like agents and home owners. If we strive to have integrity and build trusting relationships, you know you did your best for all involved. Not just yourself.

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