All Forum Posts by: Will Barnard

Many of them operate illegally (unlicensed), lie about rehab and exit value numbers, lie to the seller about their "partners" or inspectors coming to view the property (when it is actually potential buyers), etc. You also have wholesalers coming on this platform and advising others to do illegal or immoral things. This angers and frustrates others who operate above board, including the few good wholesalers out there. It is argued that they rob sellers of their equity and take advantage of the uninformed as they have NO fiduciary duty to the seller.

Well, here are my thoughts. Most commercial properties are owned by investors and investors don't get to that point in their career by being ignorant or foolish. Investors are the buyers and sellers of these properties and therefore would likely not be foolish enough to lock up their property to some middle man with exit clauses to the contract. They want to deal with the actual investor buyer and agents listing their property will bring it maximum exposure for that buyer. So these property owners are likely not going to be interested in a wholesaler with an assignment and weasel clause locking up their deal.

Could it be done on a 4 plex or something small, certainly, but few are far between would be my guess.

@Brandon Sturgill "BP does bear culpability for facilitating discussions on the forums where individuals are implicitly brokering deals without a license or in clear intentional violation of their state laws." - I have no idea if this is possibly true or not, sounds like a legal question for a legal professional, and while I agree that not all podcast guests were vetted as good as they could be, nobody is perfect and even the most vetted can give bad advice or advice that is illegal in some or all states. I fully agree that some do that and the forums are full of crap like that. Case in point, look at the post above from Nate I quoted, advising people to make up phony POF's!! Ridiculous, but I can't say that falls on the heads of BP for legal culpability, I'm not a lawyer.

All us good guys (and gals) can do is keep fighting the good fight and calling out those who post horrible or illegal advice. All in all, I know my career was boosted from my long time membership here and I know many others agree and have had similar results. You get what you put into it.

 NO, they are not created equal. I have run into many who promise the world and deliver hardly anything. You really need to scope at a good one and sometimes, that means trial and error.

This is a conversation you should have with your CPA, not opinions from us members (unless a CPA chimes in). An LLC does not give you any tax advantages, more liability protection than anything, however, in a loan scenario, you are not on title and therefore do not have any liability exposure to my knowledge. I am not a CPA or attorney so I do recommend you seek professional advice on this question.

This is really good advice. Shopping MLS is not usually going to find you great flip deals and those that I have done on the MLS were either deals that fell out of escrow so I was able to jump in (before the public new it was going back to active from pending) for a lower price and quick close or I knocked down most of the home to build new. Going after the light rehabs (AKA lipstick flips) is low hanging fruit that everyone is fighting over, so there lies your problem. You must find a niche that reduces your competition and that could mean going into heavier rehab projects - but you certainly want a good team to help you through that if you are not familiar with it. I would not "partner" with the contractor, but certainly find one reputable who has worked with other investors in the past and currently. Having a good team is essential.

Off market deals is where you really want to focus your efforts as that is where you can find deals , even lipstick variety.

 This is good advice. You need consistency and edits to improve results as you go. Casting more nets will get you better results only if your net was cast right. If you are doing it wrong, your results will show. I would advise having a website with good SEO to drive traffic to you.

A JV agreement for what? Most legal binding agreements should be drafted by your Real Estate attorney.

When someone says the market is too hot and it is too difficult to find deals, they simply mean it is too difficult for them. It is a numbers game and with drive, determination, and the right systems set up, you can certainly succeed in finding deals in any market.

For motivated home seller leads, you should really invest in a good website with proper SEO so your buyers can also come to you. The more nets you cast, the better your odds of landing deals.

 I never said "assign" and you would A. need to get the assignment clause in your contract OK'ed with seller and their agent PLUS B. you would need to check your state laws to see if your process would violate any brokering laws.

I simply meant that if your buyer was already in place with a price agreed upon for a property with the numbers you provide (and assuming those numbers are accurate), you simply contract with your cash buyer partner for a fee or you form a new entity naming you and them as owners and you simply sell your interest/shares in the company to them at closing for your fee. No double closings or borrowed funds needed.

Most wholesalers who use the assignment process are actually violating the law (brokering without a license) in most states. If you bring buyer and seller together for a fee, publicly market a property you do not own, or any number of tasks which states require a RE sales license for, you are breaking the law.