All Forum Posts by: Brian Frasier

Hello. Yes I too am having a heck of a time reaching anyone on their end. I have spoken to someone by the name of Marlene Lao last Sept but then she dropped off the face of the earth on me suddenly. I try to contact her 3-4 days a week with buyers that want the deals but can never seem to reach anyone to do it. I'm really wondering if they are some sort of scam company or something.

If you're looking for a good source to finding Investor Friendly Agents then my advice is to use the "Find An Agent" button here on Bigger Pockets. I have found Many Agents/Brokerages that way.

@Jeremy Marquez I used to run into that issue from cash buyers all the time when I first got started in 2016. But this is now what I've found and how I work On Market deals. As long as you get the on market listing under contract under the list price then a cash buyer usually will see that as a deal. But if a property is listed at say $100k and you got it under contract for $100k or higher bc of a bidding war or whatever and then go to a cash buyer and that buyer sees that it's listed at $100k then to that buyer it's not a deal and they will more then likely have an issue with it. But if you lock it up at say $80k and bring it to a buyer for $90k (with your assignment fee added to it) then when the buyer sees it on market for $100k then it's more then likely seen as a deal to that buyer. At the end of the day, if you have an issue with a buyer not wanting to buy your contract bc it's on market then my advice would be to say something along the lines of, "it's under asking price and with comps and looking at the numbers, you're still looking at a solid & good profit after reno so does it really matter if it's on market or not? It's still a deal." The seller pays Realtor Commissions for both sides (buyer and seller agent) so that doesn't affect the buyer at all. Plus, you can also work it out with the buyers agent that the seller pay the closing costs as well. That's what I do quite a bit with my agents. It doesn't work like that all the time bc those things are negotiable of course. But if you ever have any questions like that then go to your agent and ask. The worst thing they can say is no right?  

All I do is Wholesale with Realtors. Having a Realtor or 2 on your Team is a great way to wholesale in my opinion. As for your 1st question " Do I tell them I'm a Wholesaler?". You don't have to tell them bc at the end of the day, you are just trying to get the deal under contract to purchase. After that it's your business alone on what you decide to do with that contract once you have it. So if you decide to purchase it and hold it for a rental (your business), you decide to assign it to an cash buyer/end buyer (your business) or if you decide to buy it and flip it in order to resell on the market, again, (your business). So you don't have to tell them what you exit strategy is. If you know that the Realtor your working with or planning to work with is an Investor themselves OR very experienced with working with Wholesalers/Investors then it never hurts to just be honest with them and let them know that you plan to assign the contract to an end buyer once you lock it up under contract. That agent could very well already have cash buyer investors that they know are looking and can refer them to you. As for your next question on contracts, I use my realtors contracts always. Just make sure the Purchase & Sale contract is assignable. Normally as long as the contract does NOT specifically say NOT Assignable on it then it's assignable regardless. But just make sure it is just to avoid any issues down the road. Hope this helps.

I currently have a rental portfolio totaling 40 properties. All properties are in excellent condition and were all built between 2001 and 2019. All properties have leased tenants living in them and making great cash flow. I'm looking to wholesale/assign them to a buy & hold cash buyer investor or divide them up to several cash buyer investors. Can anyone tell me how I should go about doing this? I have 2 buyers that are specific portfolio buyers but I'm unsure as to how I should go about the process of assigning them out. As a package or individually? I've been a wholesaler since 2016 and have done several deals in that time but never a portfolio of this size. Anyone have any wisdom/experience they would share? Much appreciated!

You are very welcome :)

Buyers have to put up an EMD. If you have a property under contract that you are looking to assign/wholesale to an end buyer/cash buyer and they refuse to put up an EMD then don't do business with them. Move on to another buyer. Don't waste valuable time on them. Any legit cash buyer that knows how to do this business knows that an EMD/Good Faith Deposit is mandatory. If they refuse to put up an EMD then there's a huge chance that they won't even show up to the closing table anyway or complete the transaction. If they didn't put anything into the deal like EMD then they have nothing to lose if they back out. That's the whole point of getting that "Good Faith Deposit" or EMD. So yeah, my advice to you would be to just find another buyer. One that understands how business is done. Hope this helps :)

Hi @Malikah Planas I just now got off a call with my Tax Advisor CPA and he told me that 531390 is the NAICS code to use as a wholesaler. 

***UPDATE*** 5/31/22

These codes below no longer exist. As far as I can tell there are no longer any codes that are for Real Estate Wholesaling in any way. Probably due to the restrictions that the gov are trying to place against Wholesaling & Assigning Contracts. I have spoken to 3 Real Estate Attorneys, 3 CPA's, Credit Suite and 11 other Wholesalers as well as extensive digging throughout the NAICS website. Also, if you are a new wholesaler or Flipper trying to form an LLC and want to get funding, it is very wise NOT to have anything whether it be "Business Purpose" or an NAICS code that has any relation to Real Estate whatsoever. It will put you in a "High Risk" category with the credit bureaus and lenders and you will most likely be denied.

SIC 6531054 - Real Estate Buyers Representatives (wholesaler/non-licensed)
SIC 6531026 - House Buyers (wholesaler/non-licensed)

I'm a Wholesaler in Florida. Are there ANY Wholesaler/Investors that can please tell me what NAICS Code I should use? Thanks!