All Forum Posts by: David Nacco

@Wayne Brooks Also in Virginia I cannot to a net lease meaning I can’t say anything above $X Goes to me. Would I just structure where I just charge a flat fee for the services say like 30K flat fee to me and then anything else is their profit?

@Wayne Brooks I'm not worried about getting the hard money for the rehab I already know I can get that because the HML is a good friend of mine. I'm mainly just concerned with how I would structure it legally. Also a short sale wouldn't be in their best interest. The house would sell for around 70K right now because they just couldn't afford to keep up with maintenance and on top of that had an adult kid with substance abuse problems who has trashed it. They owe 100K and the place would easily sell for around 215K with about $40,000 into it. I'd rather try helping them not have a short sale and hurt their credit anymore when I know that they would be much better off not doing that.

@Trenell Brown What are you looking to find out? I live here and have lived in 4 of the 7 cities

Hey everyone I need some advice on how to structure this flip... so I’m a realtor and have a distressed seller who has a house they need to get rid of. It would make a great flip but I don’t have the liquidity right now to buy the house and flip it and I don’t want to wholesale it. Listing it wouldn’t make sense for them because they are under water on their loan so they won’t net enough to pay it off and they can not come out of pocket. I do have the ability to get a hard money loan for the rehab and would like to present them with the option of allowing me to flip their house which would net them enough money to pay off their loan and just move on from their situation. How would you guys recommend structuring a deal like this?

My main concern here is me rehabbing the place and they basically just say well screw you I’m keeping it now and not paying you for those rehab costs. How would you guys recommend securing my interest in the property while still protecting the seller as well where they know if I don’t come through for them then their money and home is safe. (Not that I wouldn’t but I always want all parties protected fairly and equally)

reaching *

@Michael Rivers That makes sense. Have you considered researching out to some flippers and asking them if they will partner with you on a deal if you bring the deal to them? Also I would read up on the laws before starting wholesaling. https://www.mass.gov/lists/statutes-and-regulations-real-estate-brokers-and-salespersons check this out and pay extra attention to the licensure section. This one might be useful too https://www.mass.gov/info-details/massachusetts-law-about-real-estate

 If you actually want to put transactions together and make money to put into investments there really isn't a downside to being an agent. Being an agent only wouldn't benefit you if you don't plan to actually take clients because then you are paying fees without getting much in return but if you want to actually work with clients and market properties being an agent is worth it. People talk about the "downsides" which literally is just telling all parties involved that you are an agent in writing. I have never actually seen or heard of anyone caring that an agent was involved as a party to the transaction. Also in my opinion making money as an agent is a lot easier than as a wholesaler. 

I think those numbers look good. Your monthly insurance looks a little high so if that is what you were quoted I would call around a bit. It could probably be lower (which only makes the deal even better) But even if that's what you pay not bad!

 Do NOT stop advertising. Build relationships and connections with agents now. Agents are spending a LOT of time at home bored trying to find ways to keep the ball rolling and/or refining systems. This is a perfect time to reach out, get on Zoom calls, show them what you can offer, go out and take sample drone footage to send to agents. A lot of agents have more free time right now and this is the perfect chance for you to get in touch with them and start building a relationship. 

eXp Realty is great and has lots of training and support and

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