All Forum Posts by: Ben Meisel

We just did this and sold a previous home turned rental, partially because of the capital gains exemption.  Primarily though, because we wanted to take the equity (tax-free) and invest it into other opportunities.  The ROE hasn't super strong and I think we can do better.

We live in Redmond and believe the market here will continue to be good (we're basically in the Silicon Valley of the NW!).  That said, we didn't sell because of the fear of a downturn in the market, but rather the opportunity cost of a) lost tax savings, and b) other opportunities. 

Hope that helps!

Nice work @Douglas Walker!  You gained knowledge, got some lessons learned, and some profit in your pocket to boot!  Thanks for sharing your story!

Hi @Tyler Jahnke - 

The wholesaler typically doesn't actually buy the property.  They make an offer to the seller and get the property under contract.  The contract is written in such a way that they can "assign" the contract to someone else to be the actual buyer.  After the property is in contract, the wholesaler quickly goes out and attempts to find a buyer who they can assign the contract to.  If the wholesaler has agreed the "buy" the property from the seller for $100k, they might be looking for an actual buyer to buy the property at $105k.  That $5k difference is what the wholesaler pockets when the deal goes through.  The original contract should also be written in such a way that gives the wholesaler outs in case they can't find a buyer.

States vary on the actual logistics, but this is the basic concept.  And typically, a realtor is not necessary.

Omar, congratulations on what sounds like a good buy. Do you know if the condominium complex has a rental cap? If you don't know, you can find out by contacting the HOA. If they do have a rental cap, they may have already reached it, which would likely impact the available options for you.

It depends what you want to do.  In some situations it can certainly help and be a nice tool in your toolbox.  Other situations (such as investing out of state) might yield less of a return on your time/money.  

Welcome @Jason Simon!  Learn, listen, but most importantly, get out in the market and jump in!  Too many people never get to that last step!  

That's the basic gist of it.  Some people are better at hitting the streets and finding the deals than others, and they might make great wholesalers.  Others, would prefer to not handle that, and are willing to pay a wholesaler the markup in order for the deal to be found for them... In theory, they are both still getting a good deal.  Wholesaling is attractive for beginners because you can start with little to know startup money, and quickly pocket some cash.  

Good question @Jim Sestito, I was wondering the same thing!  I went to the college where much of the movie was filmed.  Good story!  https://en.wikipedia.org/wiki/Prefontaine_(film)

This might be a good place to start:  http://www.ci.bothell.wa.us/337/Permit-Center

That said, you first need to find out if your specific address is covered under City of Bothell, or if it is unincorporated.  I live in Redmond, but not within the actual city limits for zoning/permitting.  Thus, if I pull permits I have to go through King County (they have a nice office in Snoqualmie).

Best of luck!

Could you please send me more information?  Waterfront on which lake too?

Thanks