All Forum Posts by: Norberto Villanueva
Norberto Villanueva has started 19 posts and replied 274 times.
Post: Why aren’t novation agreements fraud?
- Real Estate Consultant
- Colorado Springs, CO
- Posts 324
- Votes 117
Quote from @Norberto Villanueva:
Quote from @Charles Carillo:
Quote from @Norberto Villanueva:
Quote from @Charles Carillo:
I do not think the issue is with the agreement itself; every time a real estate agreement is renegotiated it is a novation. For example, you are purchasing a house for $100k, and then during the inspection, it is discovered that the hot water heater requires immediate replacement. The seller does not want to replace it so both the seller and the buyer agree to lower the purchase price to $98k and both parties sign the new agreement. Wholesalers are just changing the name of the purchaser instead of the price.
I feel the issue with some wholesaler tactics is that the wholesaler is not being truthful and honest with the seller. If you are not going to buy it, tell them. A partner of mine that has been wholesaling for decades always tells the seller up front (before any agreement is presented) that he is not buying the property himself. The wholesalers that mislead sellers are the ones that tarnish this strategy.
First, I am not an attorney. With all due respect, I disagree that any renegotiated contract is a novation. Where the inspection scenario you mentioned may require an amendment to commemorate any renegotiation, that is not the same. A novation literally voids the original contract.
At least in Colorado, real estate purchase agreements are entered into Caveat Emptor. Latin for buyer beware, anything not in writing is purchased as-is. But this cannot cancel the buyer's right to terminate based on any number of reasons including inspection items.
Best, and most commonly resolved (negotiated) in an Inspection Resolution process that seeks to amend the default as-is purchase agreement (contract), it is incorrect to conflate the two, as was alluded to in the article's conclusion.
Post: Why aren’t novation agreements fraud?
- Real Estate Consultant
- Colorado Springs, CO
- Posts 324
- Votes 117
Quote from @Charles Carillo:
Quote from @Norberto Villanueva:
Quote from @Charles Carillo:
I do not think the issue is with the agreement itself; every time a real estate agreement is renegotiated it is a novation. For example, you are purchasing a house for $100k, and then during the inspection, it is discovered that the hot water heater requires immediate replacement. The seller does not want to replace it so both the seller and the buyer agree to lower the purchase price to $98k and both parties sign the new agreement. Wholesalers are just changing the name of the purchaser instead of the price.
I feel the issue with some wholesaler tactics is that the wholesaler is not being truthful and honest with the seller. If you are not going to buy it, tell them. A partner of mine that has been wholesaling for decades always tells the seller up front (before any agreement is presented) that he is not buying the property himself. The wholesalers that mislead sellers are the ones that tarnish this strategy.
First, I am not an attorney. With all due respect, I disagree that any renegotiated contract is a novation. Where the inspection scenario you mentioned may require an amendment to commemorate any renegotiation, that is not the same. A novation literally voids the original contract.
Post: Why aren’t novation agreements fraud?
- Real Estate Consultant
- Colorado Springs, CO
- Posts 324
- Votes 117
Quote from @Charles Carillo:
I do not think the issue is with the agreement itself; every time a real estate agreement is renegotiated it is a novation. For example, you are purchasing a house for $100k, and then during the inspection, it is discovered that the hot water heater requires immediate replacement. The seller does not want to replace it so both the seller and the buyer agree to lower the purchase price to $98k and both parties sign the new agreement. Wholesalers are just changing the name of the purchaser instead of the price.
I feel the issue with some wholesaler tactics is that the wholesaler is not being truthful and honest with the seller. If you are not going to buy it, tell them. A partner of mine that has been wholesaling for decades always tells the seller up front (before any agreement is presented) that he is not buying the property himself. The wholesalers that mislead sellers are the ones that tarnish this strategy.
First, I am not an attorney. With all due respect, I disagree that any renegotiated contract is a novation. Where the inspection scenario you mentioned may require an amendment to commemorate any renegotiation, that is not the same. A novation literally voids the original contract.
Post: Committed - Posting For Accountability
- Real Estate Consultant
- Colorado Springs, CO
- Posts 324
- Votes 117
Targeting 100% seller financing for your very first deal, it seems you went up a rung or two too high on the ladder. Why not acquire your list(s), polish your script(s) (foreclosure, divorce, etc.) and set your sights on the first rung, an acceptable fast, cash offer! Rinse, repeat, and build a reserve so you're ready for that seller-financed deal, if and when it comes. They are not that prevalent, at least not yet, especially not in markets that still lean toward sellers, which seems to be the case in New Orleans.
Post: Struggling to get started as REI
- Real Estate Consultant
- Colorado Springs, CO
- Posts 324
- Votes 117
Welcome, Josh! Exactly this!! Let people know what you do and network. Partner up! An off-market Baltimore deal came across my desk the other day that got deleted. How about we don't let that happen again and connect?!
Post: Front Range Path of Progress...
- Real Estate Consultant
- Colorado Springs, CO
- Posts 324
- Votes 117
I got you!
Post: Looking For Genuine Info on Pace Morby Subto Mentorship
- Real Estate Consultant
- Colorado Springs, CO
- Posts 324
- Votes 117
It all depends on what you want. Most of it sizzle he does provide a lot of value for free and has quite the community. I found it expensive but then, with close to thirty years in the game, I tend to find that with gurus. Just keep in mind, I read somewhere the success rate for most guru programs is in the single digits.
Post: Front Range Path of Progress...
- Real Estate Consultant
- Colorado Springs, CO
- Posts 324
- Votes 117
My crystal ball says south, to stay along I-25. The migration from Denver to Colorado Springs, where the median is hovering in the high fours to low fives in the midst of roughly a 7-year run, Pueblo is picking up steam, as is Trinidad.
Post: Need advice for selling “seller leads”
- Real Estate Consultant
- Colorado Springs, CO
- Posts 324
- Votes 117
They say you find the deals, the money will come so, great job finding deals! Now you need buyers, which seems to be the problem. Fix that, even if that looks like a JV with someone who has them.
In what markets are these deals located? :)
Post: Wholesaling with realtors: Contract question
- Real Estate Consultant
- Colorado Springs, CO
- Posts 324
- Votes 117
What exactly is this REALTOR's role in the transaction?