Contract

28 Replies

@John Thedford That is my ultimate goal. I have a duplex and a SF home that i own right now that are cash flowing. 

I want to own more cash flowing properties that I can buy and hold. I was thinking maybe i could DM for deals to try to find something a little closer to the 2% rule. The MLS going to give me that in my area so i wanted to go off market.

I do know a couple active investors in my area at the moment. They each have a couple projects running at the same time and are always looking for a deal. I was thinking while i was DM marketing for myself, if i found a motivated seller that would fit their criteria i could just wholesale to them to make extra cash for my rental properties. Plus if I found a motivated seller that wasn't prepared to take my 65% of the AVR - my repair cost and wanted to sell closer to market value, then i could just refer them to my fiance/mother to list the house on MLS.

I'm not trying to just make a quick buck. I JUST WANT TO FIND DEALS and i'm willing to work extremely hard for this. At the same time i'm not going to force anything. I'm a general manager for a multi-billion dollar facility maintenance company. So i know my way around repairs and rehabs. If i'm going to make an offer on a property then I'm asking myself in the process, would i buy this at this price? If i didn't have a buyer for a wholesale deal i would buy this property myself(Even if i had to tap into hard money). Like i said in earlier post, i'm not trying to tarnish my name. On the other hand, I do not fully know the laws in my state or all the options that are available to wholesale here. This is why i'm asking the questions.

In my situation would it just be better if i just got my license as an agent? 

I want to thank you again for all your help and advice. You guys have been very helpful and insightful.

@Ryan McPherson

WIthout a doubt I have got more deals due to having a license. Many people seem to trust a licensee more than a non-licensee. Buy and hold is IMO the best route to building wealth. I just purchased another last week. I could have EASILY banked 20K by assigning it. Why not? I would have given away about 30K in equity. Not only would that have been taxed as ordinary income, I would have short circuited the income from holding it 5,10, 20 years. In less than three years, I will net what I would have made on the assignment. After that, look at making 10K or more a year each and every year of ownership.

Now, the problem we all have is endless money to buy. I talked to a HML on BP as well as a local HML I know. I didn't have the cash, and I had no intention of losing this deal. I then tried CL seeking a private lender. After filtering through the FRAUDS AND SCAMMERS wanting advance fees, etc I had one local guy contact me. He funded the loan at a pretty decent rate. Now I have 13 income producing properties...thanks to OPM. If you can find a smoking hot deal, WHY give it away. Line up funds now if possible. You could even start advertising on places like CL or BP for lenders. File away the good ones for future reference. The truth about "wholesaling" is that many people never make a lot of money. With FL law being as it is, it is pretty difficult unless you close and then resell. The FRAUDS AND SCAMMERS that are operating illegally have to hide in the shadows. They know they are committing a crime, so they are really hindered by not being able to post pictures, their contact info, etc. Of course, the new unlicensed brokers don't know better (they were taught wrong), and they end up like these guys did. They probably did not know it is illegal, but they do now.

https://www.myfloridalicense.com/sto/unlicensedact...

https://www.myfloridalicense.com/sto/unlicensedact...

You CAN get licensed and adverties properties under contract if desired.

You can tell the rookie unlicensed brokers because they advertise properties they do not own (BROKERING WITHOUT A LICENSE) and even put stuff in the ads like: showings saturday 1-4. It is a VERY easy case for the state to make, and they DO put an end to it. One time, no big deal--get the cease and desist. After they know better, if they get caught a second time, I think it likely the state would prosecute. We have a local guy that very well be facing prosecution. I am watching closely and if charged, I will post it on BP. I think the unlicensed FRAUDS AND SCAMMERS are losing sleep over my posts:)

I have had my license since about 2005. I just got my brokers license but will almost never been seen in the office. I much prefer to be an investor and build sustained wealth.

So, what is better for you? You have to figure that out. But remember, you can be the business owner (landlord) or the employee:) I like being my own boss!

@John Thedford Wow! Great post, filled with so much information. I really do agree with you that buy and hold is definitely the way to go. I would have to also agree that working for yourself is the ultimate goal of mine.

I'm curious, as an broker how are you finding your deals? I know being in the game over time people start to trust you and bring you deals. Are you at that point of your career or are you using DM or even something else?

Originally posted by @Ryan McPherson :

@John Thedford Wow! Great post, filled with so much information. I really do agree with you that buy and hold is definitely the way to go. I would have to also agree that working for yourself is the ultimate goal of mine.

I'm curious, as an broker how are you finding your deals? I know being in the game over time people start to trust you and bring you deals. Are you at that point of your career or are you using DM or even something else?

Ryan: As I stated I really don't work as an agent. When I get calls, etc I forward those to a good honest agent I work with. The one I purchased last week simply fell in my lap. I don't do DM because I am not chasing purchases. I have purchased a few houses off of CL..and in fact got GREAT deals. I have also purchased because distressed sellers have contacted me for a HML, and I could not do their loan..but I COULD buy their house:)

Another GREAT way to make money is doing HML. Never really got into it in this thread. I started five years ago and returns have been fantastic. I started a thread some time back:
https://www.biggerpockets.com/forums/49/topics/465...

I do have another business. This one drives the left crazy:):):)
I sell MACHINE GUNS

Between the online business, HML, and rentals I have enough to do!

Let me know if I can help you in any way.

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