All Forum Posts by: Duncan Hayes

@Elijah Williamson one thing i noticed was you said your family member’s seller wants more money than the property is worth. In most cases, sellers don’t sell on terms, meaning you’re gonna have to give a little more to get what you’re asking for. You’re gonna be acquiring wealth at their expense basically, because they take on the most risk in deals like these. You need to start evaluating deals with a win-win mindset, instead of trying to get these houses from their owners for basically nothing. I mean, yeah you’re paying them, but from what I’m gathering you aren’t trying to pay him fairly.

You should figure out the sellers needs and goals, then try to build a deal from that. I’ve offered sellers more money than the property is worth on these types of deals, simply because the tenant or tenant-buyer are the ones paying the debt down, not me. Plus most people only know of one way to sell a house and that way involves them getting all their money at once. You have to make the deal sweet for the seller, not just yourself. And if a win-win situation doesn’t exist, then it’s probably best to just leave them be and move on to the next prospect.

I’m with Nathan. Don’t stop completely, because I would never tell someone to not pursue wealth, but get more training on the subject and possibly hire an attorney to help you. There’s a lot that comes with these types of deals and while i won’t say you can’t start off in the industry doing these deals, i will say you need to be knowledgeable in every aspect of it. At the beginning Thats obviously impossible, but that’s where it’s up to you to gain the knowledge on your own. You should check out propelio academy. There’s tons of training videos in there (for free) on how to do these types of deals. Folks like Grant Kemp. Or purchase a Ron LeGrand course. Something to help you be better equipped walking into the conversation for sellers.

Good luck!

@Daniel Johnson well are you planning to use for text and voice calls? Or just calls? Because if you’re sending a lot of texts, especially copy/paste texts, they will ghost/blacklist the # and even though the text says its sent it won’t be received.

You do not need to have a license to assign a contract legally. Selling my interest in a property if I decide I don't want it, is not brokering real estate. I am not selling a house. I am selling my role in purchasing the house. The problem is so many outsiders like to chime in without knowing what's really going on. Are there people doing it illegally? Sure. But there's laws about driving and if you ever sped, didn't use your blinker, or ran a red light, then you are driving in an illegal fashion. You cannot group everyone with the word, "most" because you don't personally know "most" people or see how "most" transactions are done. 

There is nothing illegal about assigning a contract. We are selling "rights" to purchase a property, not selling the actual property itself. Here's some info on contract law in the USofA. 

Assignment is a legal term whereby an individual, the “assignor,” transfers rights, property, or other benefits to another known as the “assignee.” This concept is used in both contract and property law. The term can refer to either the act of transfer or the rights/property/benefits being transferred.

Under contract law, assignment of a contract is both: (1) an assignment of rights; and (2) a delegation of duties, in the absence of evidence otherwise. For example, if A contracts with B to teach B guitar for $50, A can assign this contract to C. That is, this assignment is both: (1) an assignment of A’s rights under the contract to the $50; and (2) a delegation of A’s duty to teach guitar to C. In this example, A is both the “assignor” and the “delegee” who delegates the duties to another (C), C is known as the “obligor” who must perform the obligations to the assignee, and B is the “assignee” who is owed duties and is liable to the “obligor”.

google voice sucks. get vumber for $30/mo and have multiple phone numbers. you can call/text from computer and phone. 

me personally, I'd keep the cashflow coming and find a way to leverage the property to grab another, or another couple depending on how much you can get from the bank and combine with savings/loans/etc

good luck on your decision. ultimately do what works best for YOUR investing style and goals.

I don't know of any hedge funds myself, but majority of my deals would go to New Western. I've done multiple $20k+ assignment fees this year with them as the end buyer. I'd suggest finding someone that works there and becoming their friend 😄

Yeah I'm in Austin, but most of my deals are in Houston. I've got one going in San Antonio right now actually. I've done a little bit in Gavelston as well this year. Basically anywhere in TX, but main focus is Houston. Austin is so hot right now that I don't pull lists here, I just go after properties I happen to see when I'm out driving. I'll help out any way I can!

1. Build a list of cash buyers in the market you wish to wholesale in.

a. Find them.

b. Vet them to make sure they're real cash buyers by asking them the right questions. 

2. Once you have a few solid buyers on your list and you know their criteria; then you begin searching for distressed, off-market properties. You want properties that fit the criteria of these buyers.

3. Market to the properties via cold call, sms, direct mail, door knocking, Facebook ads, whatever your choice marketing is. 

4. Run your #'s and ask for help from someone that knows what they're doing so your #'s are good. No cash buyer wants their time wasted with "deals" that aren't really deals. 

5. Negotiate w seller. 

6. Contract deal.

7. Because you built your buyer list first, and know the criteria of the buyers that you'll sell deals to, you will be able to assign the deal within a couple hours. 

8. Buyer covers EMD and all other expenses associated with the deal, title, because you are no longer the person purchasing the property.

This is the simple version. Each step takes effort and some knowledge. But, I'm letting you know that I have never put a $ into any wholesale deal I've done and I've done them in 4 different states virtually. Feel free to reach out if you need any help.

Very vague like the other person that commented said. 
Your first mistake is that you're looking for properties via agents. Why? Because you are looking to contract distressed properties to purchase at a deep discount; which is unlikely when agents are involved. You're cutting into yours and the end buyer's profit margins as well, just FYI. You should not be negotiating through an agent. You are a novice investor, not a person buying a home to live in; let the agent go. Aside from connecting with realtors for them to send off market deals to you prior to them going to market, or assisting you with comps, you really don't need to be looking for deals with a realtor. I will admit my 1st deal came from a realtor, but it was a referral. She did no talking for me to the seller. Literally sent me a craigslist ad, I reached out and did the research, and I contracted the deal. $7k assignment, I gave the realtor $1,500 for giving me the connection. Did I overpay? Maybe. But she was very helpful sending leads and helping me with comps in my early days, so in my opinion I under paid her kinda. You said the deal is in probate, so now you've added to your time clock on how long this deal will take to close, depending on what stage of the probate process it's in. My advice is to walk away and find a real off market deal, that you can get under contract, and assign to an end buyer. Keep the connection w the realtor, but I think you need to revise the terms of how you guys work together. You want them to send you "pocket listings" or beat up houses they see when they're driving to an appointment with another client. Not MLS listed stuff. If it's on the MLS there's 1,000 other investors local to you and far away that have already seen it. If it was really a deal, you would have never gotten to see it being a beginner because one of those 1,000 pros would have already got it done.

Good luck to ya, feel free to reach out if you need any help at all. 

@Mel Hayes personally, I’d agree to the year, with a 6-12 month extension if absolutely necessary for you to get the funding etc in order to pay off seller.

Or put in your contract that in a years time you guys will come back and eval everything. You could tell them that a lot of sellers decide that they like that pure cashflow, and end up wanting to continue receiving the payments. This could buy you a little extra time.

Also, if they seem like they’re REALLY REALLY set on the year, then I’d advise you to start your search now so you’re ready in a year.

Good luck.