All Forum Posts by: Bob Floss II

@Michael Cox It will be hard to pull off. I've seen a lot of commercial lenders are cracking down on investors using another investors money for the down payment. It's a higher risk borrower and underwriters don't like it. You could either go with a hard money lender to fund purchase and rehab or finance the purchase at a lower price and have the private investor fund the rehab, but the private lender will be in second position. 

@Leslie Crosten An attorney or title company can review the foreclosure case. 

@Account Closed It's not illegal to wholesale in Illinois. They amended the brokerage act to make wholesaling a brokerage activity that requires a real estate license. 

@Simon Obas You'll need an EIN, bank account, and operating agreement. Keep records and hold your yearly meetings. 

@Nathan Gesner

My main issue with wholesalers starts with item 1 on your list. They write beautiful prose online on their best business practice and disclosure. In practice, I rarely see any disclosure given to seller and the wholesaler plays a shell game to the closing table in hopes they don't get caught. The seller has no idea the property is being assigned.

I'm doing a closing in an hour and the seller is going to take a proceeds check because she's terrified of wires. I warned her it could take 10 days to clear but she doesn't care. 

Thanks @Andy Mirza.

@Anita Chambliss You need a brokers license to wholesale in Illinois. If you plan to buy and hold or flip properties, you don't need it. I'd be happy to talk to you about more of the details. 

@Aram Schwartz If you are concerned about title, you can elect to pay for your own title insurance policy so you can be sure its done right. 

@Mario Rosales As several people already posted, it depends on your agreement. I don't know if you had a promissory note with a personal guarantee, were made a member of the entity that owned the property, or if this was a hand shake agreement and you're left in the cold.

I'm worried you did what a lot of SDIRA investors do and handed over the funds with no paperwork.

@Alice Huang I quote a flat rate for doing the operating agreement of an LLC so that's not a red flag. If you are creating an LLC you don't necessarily need a partnership agreement because the operating agreement of the LLC acts as a partnership agreement. Sounds like you have a pissing match between attorneys because they want to get your future business and aren't happy they are only getting a piece.

One attorney should present the operating agreement and if the other isn't happy with it, they can make recommended changes or corrections. This might run up a bill for you though.