All Forum Posts by: Dustin P.

You should absolutely always see the original contract. You are agreeing to all the terms on that contract when you sign an assignment contract. What if it says that the seller can stay in the property for 5 years with no rent? What if it says you have to pay the seller a $50,000 credit at COE? Very unlikely yes, but you get my point

You should be at a minimum initialing every page on that original contract along with any other documentation (HOA addendum, seller disclosures, etc) to make sure you know exactly what terms you are agreeing to

Typically the wholesaler is trying to conceal their fee. Let him know hey man, I don't care what you're making on this, but I do need to see the contract to see what I'm agreeing to in writing

If he doesn't give it to you, you may be able to get it from the title company

In Arizona every contract is actually assignable unless specified otherwise in writing but yeah, plenty of people are still using assignment contracts. I'd check what your state specifically allows, however

Soon in Arizona it will be required to be disclosed if a contract is going to be wholesaled (This is defined as assigned, however, not double closed). If not disclosed, the seller will be able to cancel and retain the wholesaler's EMD

It's a loaded question without having an actual property to comp

Where does that extra 400 square feet come from? Was it a patio, carport or garage that was enclosed? Or is it a more custom house that's all original square footage? A house that was built that way typically flows better and the square footage is going to be laid out better than a house that was originally 1400 square feet that had a big space enclosed. That extra space / "bonus room" isn't going to be as desirable

Can you find some comparable sized comps if you go just a bit further out? Try .75 miles instead of .5 miles for example

You can look at price/square foot too but this will not be a direct comparison. If remodeled 1400 square feet houses are going for $250/sq ft or $350k, having an extra 400 square feet does not necessarily mean the subject property will go for $450k. Especially if it's an enclosed area like above. It may only go for $370k or $380k. An appraiser once told me if it's "fluff" square footage like above he only gives about 20% of the price/square foot for the value. So in this case that would be only $20k extra or $370k

At the end of the day you just have to make your best judgement. It doesn't mean you just can't offer on the house. But don't go calling yourself $100k more than anything in the neighborhood has sold for either. ARV / appraisals or just opinions of value, nothing more. Be conservative when all else fails

You should be asking for at least $5k EMD / down payment. Most people won't back out if they put that much down

If they do back out, I would have a means to close the property yourself. Most hard money lenders will fund 80-90% of purchase price and fund within 48 hours

Your contract should stipulate that if they do not perform they lose their EMD

The main idea is that you take a deal someone else has under contract, you find a buyer for it, and you assign the property to that buyer. In theory it works great, you don't have to actually get a property under contract yourself, you don't have to put earnest money in, and someone else closes it for you. In practice however I don't think it works out for most people. Deals are already too tight right now being directly to the seller. Adding 2, 3 4+ daisy chains makes them even tighter

EMD is standard pretty much across the board, it's not a scam

It's specific to the market right now. At least in the normal fix/flip game, not high end deals, getting something at 85% of ARV minus repairs or below is pretty difficult right now. It can happen, it's just difficult

One thing I would say with regards to list price or what you see on zillow vs asking price from wholesalers, if you see something 50k over it's probably because the house was listed low and they went over list to get it. I do this all the time, a lot of deals I buy are over list. That's just the Phoenix market right now

It may make you feel like a jackass but this tenant is being a jackass as well, not budging on anything and refusing $100k cash for keys

I would jump on any potential lease violation in a heart beat in this situation

I don't think it matters much either way. If you're a great agent you're going to stand out and get business, regardless of your name!

Are there any comparable properties that also have those powerlines in the way that you can use to determine how big of a deal it is?