All Forum Posts by: Account Closed

@Jack Seiden - You conveniently ignore the fact that I am not the one arguing, rather defending a position based on my views as a wholesaler, while wholesalers as a group are relentlessly being attacked on this forum.

@Jay Hinrichs - which I don't mind, btw. The only way to learn and understand the process is to consider all angles and views on it. It would be a terrible forum if it sounded like an echo chamber. 

Quote from @Jay Hinrichs:

Quote from @Account Closed:

Quote from @Jay Hinrichs:

Jokes aside, you are telling me that you have retailed your RE for 91K, which is habitable and operable as a business, with $1300 monthly gross income and 19.25% return per year. Do you realize how different that is from a similar property that may need 40K in rehab, to be fixed and flipped at whatever price would justify doing it? Why would you even call "WE PAY CASH" guys, other than to troll and prank them? It's like having 20 cars in a garage, all in good shape with maintenance records and all, and calling a local dealer's shop asking for a trade-in value on one of them, while I can comfortably put it on cars.com and sell it to highest bidder or take it off the market if I can't get the top retail dollar on it. Compare that to a guy who has a clunker, lost his job, can't buy groceries and needs cash to put food on his table while he is applying for unemployment benefits, food stamps and jobs. He will be happy if Carmax buys what he has at trade-in value, but Carmax will probably turn him off, so he will end up going to one of the local dealers who will pay him the least amount they can. If he has internet access, may be he will run his numbers through Edmunds.com, at least to know what the trade-in value is. But in any event, that trade-in value will be WAY BELOW top retail dollar he could get if he could afford to list it on cars.com and wait indefinitely to get a top dollar on well maintained, reliable car of the same size and year of make. 

Hey Bud they are the ones who  are sending me letters and call me twice a day on that exact address.. the issue for them is they never even look at the houses..

If they do mass mailings all over the US, based on a list pulled with certain criteria, it's only understandable that they don't look at each property they make an offer on. They may have figured the bid based on rough estimates ($35/sq. feet for repairs, offer 70% of ARV minus repair costs, closing costs and their finders fee). They pay for every single one of those mailings, by the way. And they keep sending it 6-7 times before 1 out of 1000 sellers agree to do business with them (that's 7000 mailings, a high cost to get a deal if you think of it). They are playing numbers game. Just think of it: for 999 of homeowners like you that will never need, consider or sell through them, they will end up finding 1 (one) who will be motivated enough to sell a property through them. They obviously didn't intentionally target you, they are just humans with no clairvoyant abilities and can't know all the particulars of each home owner when they send those post cards. If you had low/no mortgage and don't reside there, it may have been enough under the criteria they used to pull your information, skip-trace to call and send you the cards.

Jokes aside, you are telling me that you have retailed your RE for 91K, which is habitable and operable as a business, with $1300 monthly gross income and 19.25% return per year?  Do you realize how different that is from a similar property that may need 40K in rehab, to be fixed and flipped at whatever price would justify doing it? Why would you even call "WE PAY CASH" guys, other than to troll and prank them? It's like having 20 cars in a garage, all in good shape with maintenance records and all, and calling a local dealer's shop asking for a trade-in value on one of them, while I can comfortably put it on cars.com and sell it to highest bidder or take it off the market if I can't get the top retail dollar on it. Compare that to a guy who has a clunker, lost his job, can't buy groceries and needs cash to put food on his table while he is applying for unemployment benefits, food stamps and jobs. He will be happy if Carmax buys what he has at trade-in value, but Carmax will probably turn him off, so he will end up going to one of the local dealers who will pay him the least amount they can. If he has internet access, may be he will run his numbers through Edmunds.com, at least to know what the trade-in value is. But in any event, that trade-in value will be WAY BELOW top retail dollar he could get if he could afford to list it on cars.com and wait indefinitely to get a top dollar on well maintained, reliable car of the same size and year of make. 

 You are always being so condescending, saying I am naive, lacking in rudimentary knowledge or surprising you by asking half decent question. Which is ok by me, I don't get offended by this stuff. But what I understand from what you wrote above is that Broker or Buyers agent's commission (money they earn from transaction) depends on the selling price of the property, so the higher it is the merrier REA or Broker will be. As a wholesaler I have no such concerns. I don't have to overinflate the worth and tell tall tales to seller, so I can grab the most commission out of peddling his property to unsuspecting , foolish buyers. I look at it from investor's point of view and try to get it at the least price possible. Obviously, wholesaler and sellers potential agent/broker have a conflict of interest there, which leads to seller's REA or Broker to super inflate the worth of seller's junk and fool the potential buyers, by lying to all about high value of uninhabitable garbage)))

As to 95% of REA and brokers not reaching the sellers before wholesalers, whose fault is that? lol

And, as wholesaler not having a fiduciary duty to seller, not running a charitable organization or Church, how is it my job to educate the seller about the worth of their property? Unless that seller is in pre-foreclosure and 60 days past on payments, why is it any of my business to teach and educate a seller? Note: I personally don't want to pursue pre-foreclosures, it's tricky and too easy to run afoul of Loss Mitigation laws in MD. 

Come to think of it, about education. I had to make choices and forego things I could do: like going out to party with girls, drink 7 days a week, smoke weed, drop school and never open a single page of any meaningful book, leave alone educating myself on wholesaling RE, while I was going to school, constantly reading books and learning new things. A clueless ADULT seller with all his cognitive abilities INTACT also made certain choices that were most pleasant to him at the moment and now pays the due price by being stupid. Why is he now entitled to fruits of my labor, my knowledge and education? I see so many strange assumptions about non-existent fiduciary duties of wholesalers, I really wonder where do you get these ideas from? lol

Great. So, why on earth sellers don't reach out to REA to get the transaction done? Or, better yet, why REAs don't do their legwork to find those sellers, put the property on MLS and sell to investors? Is wholesaler stopping sellers or REAs from doing what they otherwise would do?

Then let that seller get a REA to list his property in MLS and get most of it from end buyers. Why seller doesn't do it? Hint: perhaps he tried and no REA wanted to touch his dilapidated junk. Or, he wants quick sale, can't afford to wait for underwriters to find zillions of reasons to deny the conventional loan (which they most likely will, because the house is in need of major repair. And it can't be staged/shown to public with all the trash hoarded all over the place). But, by all means, if REA is needed who is stopping the seller from getting one? Why he even considers selling his property at 50% off?

 If that guy who runs https://besttransactionfunding.com/ is an absolute fraud as you stated, then why he is still around since 2009 and not in jail? )))

Surely one can't be openly running such a massive fraud operation for 15 years and still walk free (unless one is a CEO at Boeing, of course)?

 Hahahahaha, you really think https://besttransactionfunding.com/ is hackers' trap set up to steal your personal information?))

Did you know that @Duane Ortega (https://www.biggerpockets.com/users/duaneo) , a member of this forum, heads that company? He even posted on this topic some 8 years ago (here is the thread: https://www.biggerpockets.com/forums/48/topics/273212-best-transactional-funding ).

I hope you will not be apprehensive to click on the biggerpocket.com link? ))

P.S. POF link referenced by Chris is for back-to-back--closing, when you have a cash buyer and need transactional funding to close on the property, or when there is hard money involved to back up the purchase. You can use any other POF of your liking. A lot of HML will issue you POF as well.

 No, I don't. Somebody has to be out there with fiduciary duty to sellers and buyers. Unlike a wholesaler who markets B2B, finds distressed (uninhabitable/dilapidated) property and sells it AS IS to an investor to profit. 

Note that he advises against putting large EMD down. He says he usually gets away with $100, with $500 to $1000 being a max he would deposit if it was an extra ordinary deal. When asked what he does when seller asks for greater EMD, he responds that he simply walks out and looks for another seller. The last thing you want to do as a wholesaler is to lock up your money.

POF is a different story. One can use it to show seller that I have means to close on deal (even if I ultimately end up reassigning a contract). You can use it to show that the transaction can be closed if seller accepts your offer and everything smoothly falls into the place. You don't part with any money when you produce POF. I think what Chris emphasizes is that he never ends up closing on the wholesale property, because he almost always finds buyers for them (simply because they are true wholesale deals). But in the event if for whatever reason such buyer can not be located, then he will be in a good place taking control over the property that is known to have higher value than what he pays for it. So, it ends up being a win-win situation for him.

I believe, as I stated it before, that if you select the property and negotiate its price as if you were the investor to part with your hard earned money to own it, then your deals should be good enough to sell themselves. Provided you do understand the market, the value of the property and the potential to profit from it. 

I don't like dealing with bad people. But humans are humans, human nature is what it is. There are a lot of stupid people out there. Some of them are nuts and evil. I never knew how bad humans can get over a buck until I ran a wholesale operation of my own. So, we may never be able to weed them all out from any of the industries where humans participate. What we can do is be alert and understand that doing business is like going on hunt in a jungle. You wouldn't sleep in the middle of savannah, exposed to all the animals and harsh conditions with assumptions that lions, wolves and coyotes are your friends. You would probably put your protective gear on, be on high alert and ready to take action and protect yourself as needed. 

Aside from that, the state should step in when something outrageous and obviously criminal takes place. Putting a gun on the head of 86 years old senile man to sign the sales agreement shall never be tolerated in a civilized society. And other things that are done with clear intent to harm shall be prosecuted under existing laws. Not enforcing laws is not an excuse to pass draconian laws. Enforcing criminal laws on the books is what the gov is for. And it should leave the business alone, as long as no criminal law is violated.