All Forum Posts by: David White
David White has started 32 posts and replied 278 times.
Post: House under contract with no buyers lined up
- Edgewood, MD
- Posts 283
- Votes 59
Originally posted by @Ben Zimmerman:
"Never once did we lie to the owner lol. I'm not sure where you got that from. The owner knows we're wholesalers and we plan on presenting the house to our investors."
But see that's a part of the problem. You don't have the proper investors to present the house to, hence this post, so you have already misrepresented yourself as a competent investor able to complete the deal. Furthermore, it sounds to me like you have no intention of actually purchasing this property in a worst case scenario, and you are most likely illegally acting as an unlicensed broker. There is a fine line between legally wholesaling, versus being an unlicensed broker.
"However, I do believe the way many wholesalers work could be considered illegal.
Putting a deal under contract, marketing the deal all over Craigslist, and then assigning that deal is a fast way to get fined by your state government and get a nice misdemeanor on your record!
As Dave J. asked in about Ohio wholesaling, “What is your intent and how comfortable are you if you have to defend that position if you find the local real estate commission asking questions?” "
-Source BP blog 28 Mar 2015, Brandon Turner.
The legal aspect of things aside, in the end you signed a contract stating you will buy a home, when in reality you have no desire to actually follow through and purchase it. You reached out and contacted the seller, and presented yourself as a competent investor able to get the deal done, when it is entirely possible that you can not since you have never done it before, and have no contacts that are buyers. You can't tell me that you don't see the ethical dilemma in all of this.
We're (my partner and myself) are working with my mentor is a wholesaler. No I don't have a buyers list. But he has a buyer who he believes will buy the house if the numbers are right. And nothing is signed as of right now. We told her that we are wholesalers and we intend of marketing the property to investors which isn't a lie. My question is how do I build a buyers list since I'm using someone (my mentors) buyers. I made a suggestion of using Craigslist and going to REIA's because I'm throwing ideas out there. I still plan on going to REIA's but if Craigslist is looked down upon or possibly illegal then we won't go that route.
Post: House under contract with no buyers lined up
- Edgewood, MD
- Posts 283
- Votes 59
Originally posted by @John Thedford:
it sounds like you have put the horse before the cart and my question is why would you sign a contract on something if you cannot purchase it that doesn't make sense
Well I've read that if you find a good deal where the numbers make sense then finding a buyer shouldn't be difficult if you truly have a deal. We ran the numbers (arv's, rehab, etc) and determined we have a good deal for an investor.
Post: House under contract with no buyers lined up
- Edgewood, MD
- Posts 283
- Votes 59
Originally posted by @John Thedford:
Do you plan on telling the owner the truth or do you plan on deceiving them which seems the most popular method for uneducated people getting into the business
Never once did we lie to the owner lol. I'm not sure where you got that from. The owner knows we're wholesalers and we plan on presenting the house to our investors.
Post: House under contract with no buyers lined up
- Edgewood, MD
- Posts 283
- Votes 59
Sometime this weekend my partner and I will have our first property under contract. We agreed on the price we just have to meet and sign the contract. Our problem is we haven't began to build our buyers list. I was going to market the property on Craigslist and at a REIA meeting. My question is how did everyone else build their buyers list?
@Percy N.Thank you and I plan on doing a quick search on my upcoming days off.
Me and my partner have a list of 1300 properties. Out of those 1300 we hand wrote letters to 500 properties. We have made an offer on one property and have a meeting with another potential seller who's currently out of state. I told my partner that we need not only finish sending letters to the other 800 properties but, we need to start sending letters more frequently. My question is what service does everyone use to handle their direct mail campaign? Are you using post cards, letters, etc? Are they handwritten or not? How many times are you sending mail (weekly, monthly, etc)? How many times do you mail the same address until you move on from it?
Post: Returned letters, assignement contract, and residential status
- Edgewood, MD
- Posts 283
- Votes 59
@Kerry Baird@Charity WoodsThank you for your responses. I really appreciate it.
Post: Returned letters, assignement contract, and residential status
- Edgewood, MD
- Posts 283
- Votes 59
Originally posted by @Roland Paicely:
David,
When you get a returned letter from a direct mail campaign it usually means that the owner doesn't live at that address or the place is vacant. With those addresses you have 2 options. Try to find the owners correct address and mail it or trash it. If you have the time, patience and money find the owners true address. Assignment contracts are easy to get. Bigger Pockets has them available. Wholesalers at your local REIA also. If you need one immediately, let me know. I'm not clear on your last question. However, I see no harm in always sending a letter. Other than the cost of mail.
Also, how would you go about finding the correct address?
Post: Returned letters, assignement contract, and residential status
- Edgewood, MD
- Posts 283
- Votes 59
Originally posted by @Roland Paicely:
David,
When you get a returned letter from a direct mail campaign it usually means that the owner doesn't live at that address or the place is vacant. With those addresses you have 2 options. Try to find the owners correct address and mail it or trash it. If you have the time, patience and money find the owners true address. Assignment contracts are easy to get. Bigger Pockets has them available. Wholesalers at your local REIA also. If you need one immediately, let me know. I'm not clear on your last question. However, I see no harm in always sending a letter. Other than the cost of mail.
As far as my last question goes, I found a house that I believe is vacant. I went to my county's property tax assessor website and looked up the property's address. The mailing address and premises address are the same. But, where it says is this property the owner's principle residence it says no. I was lead to believe that you only send a letter if the mailing and premises address are different.
Post: Returned letters, assignement contract, and residential status
- Edgewood, MD
- Posts 283
- Votes 59
I have a 3 questions. My first question is what does it mean when you get a returned letter from a direct mail campaign and what do I do with the returned addresses? Also where can I find an assignment contract? Lastly I've come across properties that I deemed vacant. When I look up the property address and mailing address its the same address but under principle residence it says no. Should I send them a letter?