All Forum Posts by: Darrin Carey

HI @Travis Roberts, welcome to BP. Thanks for the indirect plug @Gerrit Harner, Travis found our networking group already.

Travis, glad to see you want to come and learn. There is a lot of opportunity in the area. I look forward to seeing you there.

BTW, the attitude of will work for knowledge gets you bonus points. Too many people want something for nothing.

I look forward to meeting you.

@Yemisi Jones Welcome to BP. There's a great community here. You're Cincinnati, so check out the local REIA if you haven't yet.

If you want more on Dayton, we do a meetup once a month in Dayton.

You're in a great area for cashflow (and flips), so take advantage of it.

@Bill Gulley I'm not going to get too far down into the weeds here. As you know, with any post there are a lot of "What ifs", ways for people to misinterpret, and look for a way to weasel around what is said.

At some point, I'll probably have to write something far more extensive and detailed than what I'm putting here.

First, people must stop equating "Assigning the Contract" as everything wholesaling. Assigning is a useful tool, but only one of several ways to wholesale a property. I understand people's attraction, as it's always promoted as a way to invest with no money.

The following applies specifically to unlicensed people in Ohio.

The first two are absolutely absolute (redundancy intended). Direct from the Ohio Revised Code and the Division of Real Estate. There is no wiggle room.

1. Assigning a contract is perfectly legal. However, what people are doing to get from contract to assignment is frequently not. Going to the Beach is legal. Driving 90 miles an hour to get there is not. 

Assigning a contract simply takes a few sentences to accomplish. Of course, a specific contract can prohibit assignment, but the law clearly allows it.

2. You cannot advertise a property for sale unless you legally own it. Having it under contract is NOT the same as owning it. And for the weasels, "Equitable Interest" does NOT  give you ownership and allow you to advertise the property for sale. You must have legal ownership. There are still questions on precisely where the line for "advertising" is drawn.

Number three is should be absolute, but there may be a loophole somewhere.

3. Do not put a property under contract unless you are ready, willing, and able to close on it personally. (For me this is an absolute.) There are all kinds of issues with entering any contract when you have no intent or ability to perform on the contract. And you're screwing the seller if you don't perform. Don't do it.

Now for the licensees:

Being a licensee MAY allow you to advertise the property for sale when you have it under contract and you are acting for yourself.  Of course, the owner's written authorization would be needed, and there'd be various disclosures too. I don't have a clear answer on this specifically yet.

Being a licensee also MAY hinder you. At the very least, it requires extensive disclosures. I can easily imagine a seller filing a complaint/lawsuit on how they were taken advantage of by the unscrupulous licensed, skilled professional real estate agent. You know the one who put their home under contract, then assigned the contract for a lot more than a commission. The agent clearly took advantage of the unsophisticated seller, and stole their home for less than it was worth for their own personal gain. Guess who wins that?

Wholesaling and all real estate activities MUST comply with the three rules above.

@Josh Childers I look forward to meeting you in person.

Hey @Josh Childers Depending on the specific question, there are a couple good RE attorneys in Dayton. Joe Lucas is a good start.

There are clear legal rules for wholesaling in Ohio. And there's what you read on the internet. You missed this month's networking, but if you come to the next one we can explain what you can and can not do.

John Hyre sold his Tax prep business to Gina Crosby. She still does my taxes.

John is now focused on self-directed IRA tax law.

The key is finding a CPA who is also a real estate investor. Local is a bonus, not a requirement. However, they must be well versed in the state you live in, and the states you invest in.

@Cameron Douglas I almost asked you on the phone if you had that info already.....I'll PM it to you.

@Jacob Danzig Will do. Anything that I would be willing to keep, I'll send your way. I'm expanding the rehab business, so I'm not adding many rentals to the portfolio at the moment. 

I'm assuming you want them basically ready to go.

C class areas are heavy single family. Some doubles, a few four family. a few 5+ are scattered about in those areas. There may actually be more 6-8-12 unit properties in the C areas.

There are some 4 units in B areas. I'll need to look to see what is out there for the 5-10 unit range that are really B properties.

There are some 5 units in the area. Many of those are 4 families with a boot leg fifth unit in the basement. Most are in D areas, a few are in better B/C areas.

There are a lot of low income 4 families. Some B/C area four families.

What type of neighborhood do you want to invest in?

What type of properties are you looking for? I know the area I like, but everyone is different.