All Forum Posts by: George Taylor

Bingo... You should be able to get a general POF with no specific address on it and use that to submit several offers. Once you have an offer submitted, they might require you to go back and get a property specific one, which shouldn't be an issue. @Edwin Rustrian

@Barry H. In states where attorneys close a HML should always pick the attorney so the interest of the actual lender or person in on their side. We have an associate that performed a HML in CT and allowed the borrower to pick the attorney. Long story short they defaulted and now it's a big mess because the attorney didn't have the lenders best interest. Just a thought..

Thank you @Engelo Rumora I just emailed you. 

Well hello @Laureen Callo and welcome to the BP community. This is a VERY valuable tool in the REI field and there is absolutely no shortage of those here willing to help. I, myself included. If you want to reach out anytime feel free to send me a colleague request and we can link up. Enjoy the rest of your weekend!

He wanted a Wal-Mart transaction? lol.... Certain upfront fees are coming to be from legit companies but it's incredibly hard determining the legit ones from the 98% of scammers out there. Like they were saying, if a company does have an upfront fee, they will not beg or threaten or anything stupid like that.  LendingHome is not a scam and they require $200. How much was he looking for? I'e heard anywhere up to $10k for larger deals before.

Investment properties are different as they're commercial and non owner occupied.

@Samuel Lee Normally you can get that number using the comps and the amount of rehab you do. The tax value doesn't factor in a whole lot most times but some people swear by it. As a HML we normally formally get an ARV with a certified appraiser doing a thorough inspection with the scope of work provided. They then compare it with the comps and there ya go. Long story short, look at the comps within a half mile and what has actually sold in the past 6 months.

@Sheila Roby That really depends on the HML. The main things we look for are the value of the property, exit strategy, and the amount of the down payment.

Well it depends on your profit from the transaction and the buyers funding. If he's using a hard money loan then his lender would be responsible for paying your assignment fee. Our company will only pay assignment fees up to $8k. Anything above that we require the wholesaler to do a transactional loan. That protects you as being the facilitator of the deal by you getting a loan to purchase the property and then double close to the end buyer. That way the end buyer doesn't wait out your contract, with all of the sellers information and go directly to them. I've come across that before several times. Also, if you are looking to make a hefty product, your end buyer might do this deal but might not work with you in the future. One example is for two TF loans I'm doing the end of this month. The wholesaler is making $60k profit on each of two deals profiting him $120k total. If his end buyer knew he was making that much of a profit their feelings might get hurt and it might cause some major headaches for them both. A TF loan ,asks your profit and makes sure you get paid in the case the buyers doesn't want to honor your contract. 

Also, another thing to think about when exploring TF loans. Some contracts aren't assignable and you would have to get the TF to legally do the deal such as all HUD properties. My old partner and I flipped several HUD properties to end buyers and investors and since they are non-assignable contracts we had to go the TF route to be able to make it work without us buying the property and having to season it to be able to sell it.

I recommend anyone who wholesales properties to at least run a deal by a HML to get their opinion on it. If you would like more information on this then shoot me a PM and we can talk more.

I see you already rectified your situation but what I meant was, if the agent thought they could get away with telling you that your "$150k" offer wasn't accepted and the counter was "$175k" then they would drive up your offer price, therefor making more money in the commission of the sale. I have no idea if those numbers are correct or not but if they are making 3% of $150k they make $4,500 but if they drive your offer up to $175k then they make $5,250. It is non ethical for them to do something like this but the higher the sales price the more money the agent makes and the better they look in front of the seller. That would also help them with referrals showing that the agent gets closer to the sellers asking price and is more efficient.  Hope that helps some. Feel free to tag me in your new discussion.