All Forum Posts by: David Hines

Ask your current realtor to refer you to someone in the area you want. A typical referral fee is 20-25% of the commission, so she wouldn’t be completely cut out of the deal.

I would recommend checking their comps and repair values very closely. I’ve seen some deals that paint an unrealistically bright picture.

First of all, I’m not a lawyer or a tax professional so you should really check with them. However, I don’t think your plan would create a taxable event. I refi’d a couple properties two years ago to pull out equity. We had originally planned to buy more rentals, but couldn’t find any deals that were attractive. We ended up taking that money from our LLC last year and using it to start another, completely unrelated business in a new LLC. My understanding is that if you’re not selling the property then whether some dollar amount is equity you have in a property or cash sitting in a savings account doesn’t matter. The IRS essentially sees it the same as taking money out of your left pocket and putting it in the right.

Assaf U. I like your idea about sharing ideas with other investors on how to deal with wholesalers. My opinion is that wholesaling is a shady business model and I avoid them completely whenever possible. The only way a wholesaler makes money is by convincing a property owner to sell their property for less than it is really worth OR by convincing a buyer (newbie investor maybe) to pay more than a property is worth. This is only accomplished by being less than completely open and honest. Wholesalers take advantage of less informed and less experienced people to make a quick buck. As a real estate broker, I also believe that anyone who has a license and is engaged in wholesaling, should have that license revoked.

Stephen Jackson Thank you for sharing your experience with NWA.

In my opinion, wholesalers only make money by being less than completely open and honest with at least one party in a transaction. This is completely opposed to the duties and responsibilities of a licensed agent.

First of all, if your primary concern is doing this correctly and legally, then you should contact an attorney for advice. I don’t know about Florida, but in Texas a landlord has a duty to minimize the costs to the tenant in a situation like this. If I were faced with this situation, I would list the property for rent and the tenant who violated their lease and moved out would only owe rent until the date a new tenant moved in.

I agree with everyone above. I think it is also worth pointing out that the OP is wrong when they say the buyer is ready, willing and able. If there is a requirement from the title company that the buyer can’t satisfy by the closing date, then they may be ready and willing, but probably wouldn’t be considered able. That being the case, no commission has been earned.

Can anyone recommend a commercial real estate attorney in the Cypress, Tx or Katy, Tx area? My immediate need is for reviewing a commercial lease and some advice on starting a retail business. Thanks in advance!

I have carpet in my rentals in Cypress and Katy, but this is mostly due to the fact that they had carpet when I purchased them. I have been fortunate to not have to replace carpets so far. If I was doing a renovation I would seriously consider tile. I would stay away from wood flooring because the chance of the tenant damaging them is the same as with carpet, but the replacement cost is much higher.