All Forum Posts by: Jerry Kisasonak

@Omar Parks 

If you do the LLC thing, you have to find someone who wants to buy your LLC. I know people have done this, but to me and the investors I know most don't want to buy someone else's LLC, even if it has a good contract attached to it. They already have their own entity(s) set up. Personally I wouldn't buy a property like this unless there was a substantial profit attached to it... like 50K+. Would you?

We fix and flip deals. We hold rentals. We wholesale. If it looks like a real estate investor and does deals like a real estate investor, it must be a real estate investor. Quack! Quack!

I am listening to Vena's webinar now. I've got an idea... Let's go out and wholesale more deals!

I am signed up as well for the webinar. Thanks @Darrin Carey

Although this is concerning Ohio, all investors should tune into this because you never know when it will be effecting the laws in your state. Across the country the real estate commission is looking hard at wholesalers. If Ohio is successful in squashing the wholesaling business by regulating it out of existence they may be the posted child for what's to come.

@Account Closed

I agree. If I lived there I wouldn't live there. Cash out now and move somewhere out of the bustle of the city. Then again, I'm 40. At 20 I probably wouldn't be thinking along those lines.

This is a situation I think almost all investors get into at some point. Buy with the intention of fix and flipping and then change your strategy and decide to hold it as a rental (oftentimes plan B). But then the problem becomes one of buying in the wrong entity for a buy and hold. Tough call for sure as to what to do with it.

Read clause 20 of your sales agreement. You cannot assign your current contract unless you get written consent from the seller. You should have struck this clause out prior to presenting the offer to the seller. Now you need to disclose to your agent your intentions and get written permission from the seller to assign the agreement. If the seller does not give permission, your stuck and could lose your hand money.

If there is a big enough spread in the deal consider double closing - meaning you schedule the closing with your end buyer on the same day that you're closing with the seller. Keep in mind that you'll incur closing costs on both the buy and sell side if you do this - but if the spread is big enough it may be worth it. You will need funds to cover the closing, either your money or money from a transactional lender.

By the way, congrats on getting out there and taking action! Many people here will poo-poo your transaction. Ignore them. As Richard DeVos said, "The easiest thing to find on God's green earth is someone to tell you all the things you cannot do." It's good to see people moving forward even if they're doing it with a few misgivings and are not doing it to a T. Everyone who ran a 4-minute mile first started by crawling. Again, congrats!

From Pittsburgh here... and YES... lots of exciting things happening here!

I am in PA and have had people tell me (including realtors) that it was illegal to assign a contract. Apparently they are speaking out of ignorance. Our PAR agreements (Pennsylvania Association of Realtors) have a provision covering doing an assignment. If I was ever challenged on it I would ask, "Why would the state contracts have a provision that allowed for such a transaction if doing such a transaction was illegal?" And by the way, you're not selling a contract "for another." You're doing it for yourself and your own business' interest. Again, if you emphasize the contract first and foremost and then include details of what's involved with the contract (property location & description) I don't foresee there being a problem - although others may level accusations out of their ignorance.

For giggles I was just reading a few of Ohio's standard board-approved sales agreements. There are provisions in these agreements for assigning the contract - or verbiage on how an assignment needs to be done (with the seller's permission). Obviously there is nothing illegal about doing this. So it's not a matter of what the investor is doing, it's how he is going about it. Maybe advertising, "Buy my real estate contract and make $25,000!" while posting a copy of the contract is how it should be done. Then there is no house advertised for sale - just a contract.

After reading through this entire thread, not one example of a contract assigner getting torched has been brought to light. Seems like a lot of fear mongering.