All Forum Posts by: Dustin P.

@James Wise

I am against an unlicensed (Or licensed) person getting a property under contract with no ability to close or intent to close. 

If an unlicensed person owns a property however, and wants to sell it to me, then sure, nothing wrong with that.

If an LLC enters contract with a buyer with every intent and ability to buy and close that property, and then that person decides that they want to assign the rights of their contract to me, and I am a willing and able buyer, then there is nothing wrong with that as long as they are marketing the contract and not the property. If I bail for whatever reason, then that LLC should still close that transaction, or forfeit their earnest money, which should be substantial (At least 1% of the sales price IMO).

In that instance, they are not earning a commission. They are assigning their rights to the contract that they fully intended to close on. It's not the same as brokering real estate.

At least here in AZ that's fairly common.

@James Wise

I'm not sure what you are asking? I am a licensed person. Everyone I deal with is licensed. I rarely deal with unrepresented sellers.

If an unlicensed person does buy a property and wants to sell it to me, that's perfectly legal.

If I buy a property and then want to turn around and sell it to someone else, that's perfectly legal.

I agree that tying up a property with no intention to close and then looking for an end buyer is unethical and is a no-no.

I think that video that Michael posted does a pretty good job of summing everything up to my understanding.

Because you have to place your trust in more and more people besides yourself, which increases the risk. 

@Michael Ealy Great information!

And where is the moderation in this thread? You have people calling others scabs and others advocating for cutting people out of deals while at the same time boasting about being ethical. This is as degenerated as I've ever seen a thread on here.

I guess the powers that be of Bigger Pockets are unethical, why even have a wholesaling sub-forum if it's so unethical?

 A guy in my office usually says, "The early bid may get the worm, but the night owl eats whatever he wants!"

He's pretty successful too

I typically get up around 7 AM. I feel like sometimes I get my best work / research done between 10 PM - Midnight. Different strokes for different folks I guess

The last few I showed up with a list of comps with notes on them as well as a list of upgrades I did. I walked through with him, pointed out all the things we did, and at the end I just felt him out and asked if we would be in the ballpark of whatever price we were looking to get it appraised at. It worked out pretty well.

I do have investors that do an appraisal every time though as well

No. It's probably going to be market specific. Here in Phoenix though a lot of the time prices are wrong, square footage is wrong, lots of stuff in the tax records is wrong. There could also be assignment fees that are not added in there as well.

I would go back in time 2 years before expanding out, but then I would keep doing that until I found comps. 

I think you'd get a lot more out of sending $5k worth of letters, looking up youtube videos and creating a spreadsheet to track your leads.