All Forum Posts by: Account Closed

I was making 6k after paying realtor fees and paying my share of closing costs. In this case, it really wasn't worth it to close and then sell it since margins are thin. 

I just won't put another deal on the MLS again while having equitable interest . Someone could easily check ownership and if it doesn't match the contract, they'll just go around me again.

@caleb heimsoth I live in Dallas and being 3 hours away from the property complicates things . The seller was hard to reach at times and I didn't want to set appointments without me being there. So I figured, if people are willing to pay around 80 percent of ARV on the MLS and around 75-77 percent of ARV on BP, then I'm better off putting this deal on the MLS.

@Charlie macpherson I'm licensed in Texas and Illinois but not in Oklahoma. I got permission from the seller but there was no listing agreement between agent and seller. The agreement was between me and the agent and he said this was legal as long as I double close. 

I only created this thread  so people Don't risk losing their deals and deal with this guy. Even the buyer's agent probably doesn't know he closed the deal and I very much doubt the buyer's agent got compensated for bringing this deal to his attention. 

I debated for several months whether or not to put this story up on BP... but I feel I would be doing a disservice to the BP community if I wouldn't, especially to all the wholesalers in the Oklahoma area. Several months ago, James Martz (Jemco Properties LLC) went around me to buy a duplex I had under contract .

Through marketing efforts and diligent research, I was able to get this duplex under contract in the OKC area. The seller was behind on taxes for several years and property needed some cosmetic work. My intention was to flip this duplex and put it on the market after a light cosmetic rehab. However, the inspection report revealed issues with roof and foundation issues, even though this property was built back in 2005. The margins now were a bit too tight to make it work as a flip. but the deal still made sense from a buy and hold perspective. I decided it would be a better idea to wholesale this deal since I'm not a buy and hold guy.


I initially put the property on the BP market place and had a ton of interest but decided it would be a better to put it on the MLS and let a realtor handle all the process. After getting authorization by the seller to get the property up on the MLS, my realtor started advertising the property and we received tons of showing requests from other investors. My plan was to double close the deal. We had a blind offer from Jemco Properties, owned by James Martz. A day later, my realtor told me this guy had changed his mind. No specific reason was given.

Then the fun part begins. I  tried calling the seller multiple times because we wanted to show the property to other investors but he wasn't returning my calls. At this point I figured I had made a huge mistake. I had put up an inspection report up on the MLS with bids from GCs and a scope of work. Anyone with this information could literally just walk directly to the seller and steal the deal from me. After making  several calls to the seller for several weeks, I decide to give up. I even changed my caller ID but the seller would quickly hang up the phone because he was avoiding me. It was clear that he had made a deal with someone else. 

The title company e-mailed me to let me know someone else was trying to close on this deal with the seller . Eventually the contract expired and there was nothing I could do about it. 

@Meera Lakhavani if you're getting a 203K loan, I would always ask for at least 10 days to do an inspection. You won't have all the bids you need within a 5 day period. I would have a SOW ready before getting it under contract too. Make sure you have a lender that specializes in 203K loans. 

@Craig B.That's what realtors do. Now, a wholesaler is someone who finds a seller, gets a property under contract and assign the contract to an end buyer. You don't need an agent to wholesale RE. But you need to know Basic RE valuation, your market, repair costs, and have a list of buyers (often investors) who are willing, ready and able to close. 

@Vincent Pirrone you have to live at the property for at least 1 year 

@Kenneth Futrell Define motivated? If it's on the MLS and it's a great deal, chances are he has received multiple offers and will get it sold at the best possible price. And if it's been on the market for a while, then it's probably a bad deal.

There's really not much you can do in this type of situation besides submitting an offer through realtor. I get calls all the time from sellers telling them they have listed their house with an agent. I tell them to give me a call if for some reason they are not able to sell their house.I take them off my mail campaign list but I monitor the listing every now and then. If it expires, I call them and ask if they would consider a much lower offer than they had it listed for.

@Vincent Pirrone Have you explored the 203k loan option? You might be able to buy a duplex that needs work at a discount. The 203K loan will finance all the repair costs + purchase price. You only have to come up with 3.5 % down payment.

@Michael Mullins Assuming that you lease it back to the owner (now tenant) and that you end up evicting them, you can get in trouble. If they sue you , it might be considered equity skimming. Plus it's just way too much risk for a deal that only has 12 % equity. 

@Jay Hinrichs hopefully one day you decide to write a book with all these stories you have, they are always so insightful.