All Forum Posts by: Jeff Joachim

@Jeff Lee … interesting scenario! Sounds like the agent you were dealing with is new to the wholesale game, or just a really nice fellow. When we do wholesale deals in the states we operate in (Florida, Ohio, Michigan, or Alabama), we typically instruct Realtors to add their commission on top of the price before presenting it to the end buyer. A good agent would make sure they only add a fair amount of commission, that doesn't kill the profit for the investor. With that being maybe you can get away with $500 to $1,000, and also giving them the opportunity to list or manage the property for you, for a commission. 

Best of luck!

Welcome @Victoria Coleman! There are so many ways to get started, glad you are exploring your options and surrounding yourself with the right people. Here in FL, and other states, we have done a mix of wholesaling, flipping, buy and holds, and retail through our real estate brokerage.

 Perhaps you should consider a hybrid approach if the opportunity presents itself. While sourcing deals for yourself, some deals you may come across might not meet your investment criteria, but would be a great deal for another investor. In that case, you might have a potential wholesale deal. 

Cheers to your future success!

@Yannes Chiang this seems like a pretty interesting transaction. I hope it works out for you. Some may have mentioned this in other posts but... with the purchase of the LLC, then you inherit whatever debts and liabilities that are associated with the LLC. In addition, please make sure that you are not only just purchasing the LLC, but also doing a full title search to make sure there aren't any liens and encumbrances on the property.

@Bryan Hart , I may have missed it but what state are you in? I'm not sure about your state, but I'll just answer from the perspective of the deals I've seen in the markets that I do deals in (Florida, Ohio, Michigan, Alabama).

Keep in mind, in a wholesale transaction you may need 2 separate contracts.

1. You need a contract to give to the seller when you are acquiring the property (preferably assignable).

2. You need a separate contract to give to the end buyer that you plan to sell the property to (dispositions). 

As @Adam Mitchell mentioned, some people use the exact same standard contracts that Realtors use in their state. This can vary from state to state. Some people go to a real estate attorney and have them draft a contract template for them. 

Some people don't use the standard contracts and decide to instead decide to have an attorney draft custom contracts for them, for the following reasons:

1. To make sure the verbiage in the contracts is favorable for wholesaling and contain the necessary disclosures. 

2. To make sure their acquisition and disposition contracts are compatible. 

3. State standard contracts can sometimes be several pages (In FL it is 12 pages), which can some time be intimidating to distressed sellers.  I've seen attorneys draft 2 or 3 page agreements.

Hope this helps!

@Nathaniel Essayas , congrats on your current success, and for considering the move. Our company does a good bit of wholesaling in the Orlando, FL area, and after expanding to a few neighboring cities, decided to also source deals in other states. It would be good to take a trip out to Vancouver and see if you can attend some local REI group meetings, to network with other investors and wholesalers to see if there is a need or possibly folks to partner with. That is one of things our team does when expanding into other markets. @Victor Menasce  thanks for the insight into the market. Our team does deals in Michigan, and also Ohio, good to know you are having fun on your side of the border also! 

Investment Info:

Single-family residence fix & flip investment in Orlando.

Purchase price: $169,000
Cash invested: $60,000
Sale price: $295,000

This lovely little house located in an A rated school zone just South of Downtown Orlando, was one that my partner and I were able to pick up off market. Our construction crew did an excellent job, helping to polish this diamond in the rough and give it a modern farmhouse look. This house sold with multiple backup offers.

What made you interested in investing in this type of deal?

This was a property that we sourced for our investor clients that we initially, intended to wholesale. Surprisingly, we weren't able to wholesale this deal. Instead, we decided to do the flip ourselves. Since the numbers were awesome on this deal, and it is located in an A rated School Zone we gladly picked this one up.

How did you find this deal and how did you negotiate it?

We acquired this property the an off market marketing campaign. The distressed seller, wanted to get rid of it, and we were happy to oblige.

How did you finance this deal?

We purchased this property using cash.

How did you add value to the deal?

This was a full renovation that required about $60,000. The look we were going for, was modern farmhouse. We opened the floor plan, added a metal roof, restored the gorgeous hardwood floors, reconfigured the bathroom, added a window for natural light, updated the kitchen, and of course a full cosmetic rehab.

What was the outcome?

Sold with multiple back up offers in a very short period of time!

Lessons learned? Challenges?

Get friends that you respect to walk your deals with you. Sometimes other investors can help confirm some of your thoughts and also, give you ideas you might not have thought of. We got some great tips from our friends, like adding another window to the dim master bedroom, plus moving the drain lines and vanity to the other wall of the bathroom.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Our company StoneBridge Groups, helped source this off market property, closed with StoneBridge Title Group, StoneBridge Construction Group did the renovation, and we listed it with our retail brokerage Century 21 StoneBridge Real Estate Group.

Welcome @Gabriel Delgado! Being a real estate agent with real estate investing knowledge will be a tremendous advantage. Bigger Pockets is an awesome resource for free advice. Aside from yellow letters, you may also be able to wholesale MLS deals and connect with other investors, by representing them on transactions in a real estate agent capacity. My business partner, was once one of my investor clients. Simply put, if you are a Realtor that helps investors find deals, they will look out for you and may possibly mentor or partner with you. It's worked out well for me here in Orlando.

Best of Luck!

@David Richter Awesome man! Glad to hear you've had success with bandit signs. Are you targeting both sellers and buyers via bandit signs? 

@John Mcleary aside from the advice given above, an appraisal an official way to determine the true value of a home...sorry to state the obvious. Another option is having a good realtor do a comparative market analysis. 

Sorry to give a vague answer, but if you expand on your question a bit, we may be able to help you better.

@Ryan Igbanol Sounds like a tricky situation and like you've also done some great activity. You have been given a ton of great advice on here. It's definitely time to have a convo with your mentor.