All Forum Posts by: Timothy Rogers

Marcus Roberts It depends on the wording in your assignment contract. You can have it where you get half of the assignment fee when end buyer signs the assignment contract (nonrefundable deposit) and the another half at closing. I do nonrefundable deposits when I don't have a relationship with the end buyer. I usually have my end buyer sign assignment contract then I either fax or drive assignment contract over to title company and wait for closing to get paid.

Burt,

You are trying to keep from making a mistake and you can't go about it like that. My first wholesale deal did not go smoothly as I wanted to in the marketing phase of the deal. I had three investors at the same time in the seller's home while the seller was there. I was honest with the seller from the beginning by telling the seller I was a wholesaler and that I work with several investors. The seller was fine with it, but the investors did not seem fine with being among other investors at the same time. It was learning it experience for me, but I did sell the home that night to one of the investors. I earned a $5000 assignment fee. I have not made that mistake again. You just got jump in and go get deals.

If you can get the knowledge down on how to write a contract and what addemums to use to protect yourself(see an RE attorney) then everything else for you will get easier for you as you do more deals. Don't be affraid of making a mistake, you can only learn from your mistakes.

Burt,

Like Jon said, wholesaling is a hard job. You have to bust your butt daily. The Guru will make it sound easy, but it is not. Best thing you can do for yourself is to pay a consultation fee to a real estate attorney. The attorney will tell you how to use the state regulated contracts and addemdums. This is what I did when I got started in wholesaling 5yrs ago. It cost me $250 to sit down with an attorney. The attorney will tell you what is legal and not legal. All states got different real estate laws and a guru will sell you programs that probably won't fly in your state. I am also with Jon when it comes to mentors, if you are earning so much money wholesaling when will you have time to teach thousands of students. They are just taking your money to buy more properties for themselves from selling their programs.

Mikel Graham I have been wholesaling for 5yrs now. I have had great months and bad months. I have gone 4 or 5 months without a deal. I am closing 1 deal about every 6 weeks earning $3K to $5K per deal, but have gotten $2k once on a deal. I am a self employed wholesaler (only me) not working with a big wholesale firm. I am looking for deals 24/7. I don't remarket wholesale deals with other wholesalers. I will help other wholesalers sell their deal and the wholesaler share his or her assignment fee with me. I don't remarket, because it can turn wholesale deal into no deal due to all added sale prices on it.

Wholesaling is a business for alot of us wholesalers and too many people want to wholesale for quick cash and get out. Those people are the one that is making honest working wholesalers job harder. Just be ready for the bad months when they come. The Guru will make wholesaling look easy, but it is a business where you have to bust your butt daily to make money.

@Keith Saunders Are the legal fees included in the payoff amount of $31,844? If not then the seller sold himself short. He will still owe the bank. I know banks will add on legal fees when they have begun the foreclosure process.

I have been in your position before. I had a wholesale deal that was in foreclosure with 2 weeks to go before the auction. The payoff was $58K including legal fees. I offered him $62K. I had my buyer ready, but title came back with a mechanical lien (Siding Company said they did not get paid for siding job on the seller's home). Seller got financing through BofA for the siding and he had his paper from BofA where he had paid it off. BTW his mortgage was with BofA. Fax his paid in full statement over to BofA. BofA said it would take 30days to clear the lien and would not put a rush on it. So property went to auction. I loss out on the deal, but my buyer bought the property at the auction.

Banks will not work with you or wait on you, so have that buyer in place before you take contract to title company.

My friend (contractor) and I look for equity partners on deals that will be great flips with big profits. I look for the home in great communities with low DOMs. Once I find that home my friend come inspect the property. We then structure the property with a HML. The potential equity partner will come in with the difference in the total rehab and acquistion cost. After we put all the numbers together, we send out the proforma to our potential equity partners showing the potential ROI. The equity partner or partners has the option of having deed in their name or we all can form a LLC with deed in LLC name.

My friend does all the contracting work on the property. My friend and I get a small portion from profits. We started doing this because so many people were wanting to get into real estate using their IRAs, but did not want to use all of it. They are looking for a nice return in a short amount time.

We meet with all potential equity partners in person just to explain our concept and to get to know us. I want people to know that my friend has the construction experience and I have the experience in finding properties with big time profits in them.

At the end of the day I just want people to be happy with their ROI and know they can trust me and my friend with their money. I will earn my money from my own wholesale deals.

I think we all got into the real estate business for the opportunity to one day have real estate working for us instead of us working for real estate. We have to crawl before we can walk. I know as a wholesaler I am out of business when I don't have an inventory of properties to push. So, I am still a working man, but I enjoy it more because I am in control of my income. Don't have to depend on someone telling me I am only worth this much.

Brandon Paisley just use your state regulated contract. I use the Texas Real Estate Commission contract forms. The Sellers are at ease when they see a state regulated form. I know most sellers are not comfortable when they see a 1 or 2 page contract. A Texas contract is 9 pages, but I can fill it out in 10mins or less. I explain each page to the seller. An attorney told me what to fill out on the contract to cover my butt. I went home and printed a few contracts off the state website and practice on filling them out. Now, I am very comfortable with sitting down in front of a seller and filling out a contract.

@Jennifer N. Welcome to BP. You will learn so much from the information provided on here.

@Jaime Rocha Since you are in Houston,Texas...try using www.investway.com for comps and lease comps. You get a free 3 day trial. I use it for the DFW area.