All Forum Posts by: Sekelle O.

I would borrow against the equity and keep the house in Arlington. It is cash flowing and will continue to appreciate over time. I wouldn't sell a money making asset to buy another money making asset when I can borrow against the first asset to buy the second and then have 2 money making assets.

John Hixon I am confused about why a seller would pay an assignment fee. The person who is benefiting from the assignment of contract i.e. the end buyer pays the fee. Real estate purchase contracts have contingencies all the time. I am looking for my first rehab and will be using hard money. You better believe I am going to have a financing contingency. And if my lender turns down my loan app, I will be using that contingency. Does it mean I am not a real buyer? I have a cash buyer with millions in the bank who still wants a 2 day contingency on all his contracts. My wholesale contracts all have a 10 day due diligence clause. The seller understands I can cancel anytime within that period. My EMD is whatever the seller asks for. If it's $1000 I pay it, if it is more, I negotiate to pay $1000 when we sign and the rest at the end of the due diligence period. Then I get the end buyer to put up the rest. I had an end buyer put down the entire purchase price as EMD once. As for negotiating with the seller on purchase price, it is a negotiation. I don't tell lies, I act in good faith and I make sure the seller knows I am acting in my best interest and they should act in theirs. I have had sellers change their mind about selling, ask for more money. I just roll with it, try to save the deal if I can, move on if I can't. Some of the recent posts I have been reading recently about wholesaling are really confusing. Maybe I have just been sheltered and there is a whole world of crazy going on that I don't know about.

There is no such thing as an assignment fee that is too steep. The assignment fee is the spread between what the seller agrees to sell for and what an end buyer will pay, no min or max limits. If the be buyer is mad about how much money you are making, then they can find deals somewhere else. Whether u can assign depends on the contract. If it gives you the right to assign, then you can. If it says with the seller's consent, then you have to go back to the seller. (I am not an attorney and that is not legal advice, just my opinion). If you have opened escrow with a title company, the lawyer there should be able to advise you.

I had a situation like this once where the bank payoff was too high to make the deal work. Instead we did a subject to where we transferred title to a trust, took over the payments, did the rehab and then sold the house. Of course there is always the chance of triggering the due on sale clause. In our case it worked and we sold the house without any trouble.

2017 is the year I am going to do my first rehab project. My target area is Montgomery County and Howard County in Maryland. I am looking for a hard money lender to provide financing. Any recommendations? I would love to hear about your personal experiences with them.

Originally posted by :

@Bill Gulley

... I just try to give an opinion based on experience as well as my training......but I'm not an attorney, so find one! :)    

 Can't argue with that.  :)

Originally posted by @Sean Cole:

Originally posted by @Sekelle O.:

 And in Ohio, does having a real estate license mean that you can publicly market a property that you have contracted to purchase as a principal to the transaction?

 Nope.  However, not having a license doesn't prevent the Division from claiming jurisdiction over your activities.  I don't have my license for any other reason than collecting commissions on deals I was already doing and letting someone else take the free money.  Well, not the only reason, but it was the only reason I had when I started taking classes.

I guess that answers the question of needing a license for wholesaling to be legal, at least in Ohio, It sounds to me that the crux of the matter is in how you market your contract, licensed or not licensed. The general theme of this thread has been that wholesalers marketing a property for sale without a license are doing so illegally, but that if they had a license, then it would be legal. Not in Ohio, apparently.

My letters have a hand written font based on my handwriting. I had a caller tell me it looked like an 8 year old's. :( 

I had another caller call me a vulture. Another said he wanted to be paid in small bills left in 4 suitcases at various locations around DC.

@Bill Gulley That is a very interesting point to say that a wholesaler's fee should be in line with what a Realtor makes. Can you point me to the case law or other law/regulation that supports that?

Originally posted by @John Thedford:

@Wayne Brooks

You hit it on the head. As I have referred to is as "skirting the laws" and you describe it as "circumventing" the laws...THAT is the issue with most of these operators. Why get a license and operate honestly when you can play games? I filed two complaints this week so far--and it isn't over:)

What exactly is "circumventing the law"? Is that breaking the law or not breaking the law? 

Also, when you ask "Why get a license and operate honestly when you can play games?" again you are implying that you cannot operate honestly unless you have a license, and that those with licenses do not play games. As I have said before, ethical behavior is not attached to getting a license. You can be ethical with or without one.