All Forum Posts by: Brian Van Pelt

I was wondering if he was going to close his account. This is the real issue with people who go to these "free real estate seminars". They don't understand the basics of what they are getting into, and like other have posted here there are real legal and ethical consequences to doing it wrong.

@Pamela Hairston

. You are talking about an assumable mortgage where the lend allows a 3rd party to basically buy the house with the same mortgage in place. More of an uncommon product.

Link

@Brian Ledbetter

. again it depends on what your lease says about the security deposit and what it covers.
. i'll be more clear,I would meet them in person and reiterate that they had pets, they owe 10K in back fees, and have them sign a release of security deposit in lieu of the 10K or you'll see them in court for the 10K. (thats working something out)
. Just taking the deposit without a release of deposit could be problematic for you the Landlord

@Account Closed, contracting with no intent of purchasing is Fraud

Creating an ad hoc contact by asking random people for random clauses is begging for trouble. You need a RE Attn To review your contracts. 

Wholesaling is by definition buying property,goods or services then reselling them at a profit.

Most RE seminars bring a group of people together by offering "free seminars" in "wholesaling", what they end up teaching is not Wholesale Property Buying, but "Contract Assignment" which is contracting a property and then assigning the contract to another party at a higher price. In some states this is not only unethical but illegal and could land you in jail.

So if your intent is to contract to purchase a property without buying it you need to be upfront with the seller and make it clear that it will only close when you find a Buyer. In some states this can be considered practicing real estate without a licence, which may also be illegal.

The best wholesalers are capitalized enough, so that if they have to purchase a property they can do it.

@Brian Watkins

Depending on your state:

. Owner gives your permission in writing to negotiate with lender.
. Once lender REO officer agrees to amoun, Title company will request a payoff on or before settlement day. If everything lines up you are golden

@Richard Cole :

. the number one reason is having to pay 8 to 12 percent fee.
. poor track record with other landlords
. bad references
. inability to manage property property
. low rental rates in area

@Dave DeNard

My question is, what would you do? Are there any situations where it would be like shooting fish in a barrel?
Answer: Using the Cash to buy barrel's and acutely shooting fish in them

Buy a large lot, split a few times, build and sell right? I found a river lot that is 9 acres and can easily fit a few mansions....
Answer: Most river lots that are vacant are vacant because ow one reason .... water. Its getting harder to build in Flood Zones

Or what is another real estate situation where if I had the capital, it would be as easy as getting all your ducks in a row,
. Start small Condos, 2 to 4 unit multiples until you you get the process down 

@Brian Ledbetter - I would be more concerned with damage to the property. It would Depend on what your lease says regarding the security deposit. I'm inclined to think that the courts will be your only remedy. I would send them and invoice for the agreed upon amount based on your calculation. Have them come pick up the deposit that way you can present it to them in person. You may be able to work out something in person.

@Pragya Singh

It sounds more like an issue with the financials. 500K is not that much. What does the cash flow look like and the occupancy ? Have you had an appraisal ? How long have you owned it ? What are you looking to refinance it for ?

There are so many you can write books on the subject. When you find a property your best bet is to have a qualified home inspector check the house over with you there following him. He will give you a report with issues that he is able to visually observe