All Forum Posts by: Damarius Gilbert

exactly why i prefer wholesaling. Just learn from your mistakes.  Flipping houses to gain experience in the industry is expensive.

Im buying right now, I wholesale, so i run across deeply discounted properties. If its a duplex or triplex, Im buying them at a minimum 60% ARV. If it cashflows at what ever financing you are able to obtain. I would say still take it down. Stick to multifamily. If its an SFR, you relying on that one tenant to make payments and not take advantage of the system of not being evicted right now. Multiple door you are safer. The days of buying off MLS are over by the way if you looking for deals that way. Link with wholesalers or do your own marketing. Buy great deals you dont mind holding on to for a while. The key to success is cash flow, awesome financing terms and great tenants who will continue to pay.

Same happen to me, Bought a duplex last month, and one of the tenants a/c went out and had to replace it. As long as you bought a deal, it should not matter. I got this one at 60% LTV. Just replace it and move on. You just learned a quick lesson on why you should have cash reserves for each rental property.

TREC 1- 4 is for agents and brokers. They have to use that form. In Texas you can write a contract on a piece of toilet paper if you wanted and send to title company. You can also have verbal agreements but hard to enforce. I'm not a lawyer by any stretch but I do have some knowledge of the industry.

@Shashank Gokhale You are selling and marketing the contract. Not the house. Trec doesn't go after unlicensed brokers anyway, they provide oversight on Agents and Brokers. Spoke to someone who sits on Trec Commission recently. I sign one page purchase agreement, Send it to title company. Sign a one page assignment with the buyer. Send it to title. Then you get out the way. You've assigned your interest, you have nothing else to do with it. You are not a middle man for the buyer or seller. Don't take pictures and post online.That's where people get in trouble. Network before start wholesaling to find buyers first. So if you happen to sign a contract, and decide to sell your interest. Its just a phone call and you are not marketing a property.

Yeah Florida will go after you. Find transitional funding. Buy and Sale same day. Plenty of lenders out there to loan you money for the day for a point or two. Probably make a lot more than assignment. Because buyers always complain when they see the assignment and what you getting for the deal. 

 If you use Trec I recommend taking the sales agent class in person for law of contracts or promulgated forms forgot which one. If not, use one pager and assignment off of Biggerpockets files place. Thats what I use. I use trec 1-4 when lawyers involved or agents. If you use trec be prepared to explain every paragraph to seller. If you cant when they ask "what does this paragraph means" say good bye to your wholesaling business. 

@Austin Smither Langley "A broker is an agent who conducts negotiations for and on behalf of a principal (person or entity that they represent). They aren't the buyer or seller, they represent them."  This is correct. When you do this as a wholesaler this will get you in trouble. This is illegal. You DO NOT present yourself as an agent. You are not working on a sellers behalf. When you market, you are only marketing a SIGNED contract. Which in Texas, you have interest as soon as its signed. If that house burns down. I get the insurance pay out, or I can exit the purchase agreement. I recommend going to your states real estate classes. You will get the info you need there. Than decide if you want to be an Agent or wholesaler. No one here is a real estate attorney and shouldn't be interpreting law. Especially when they hold a license as a real estate professional than need to google another states real estate laws. That in itself is illegal. Agents and brokers are taught not to interpret and practice law period. Provide new investors to this site good advice,  motivation, and direct them to resources if you are not 100% sure.

@Mark S. Perfect business opportunity for you. A profile picture would be nice for our peers.

@Brandon Turner @Joshua Dorkin