All Forum Posts by: Jerry Velez

Hi Bigger Pockets Fam!

My family "owns" a co-op in Brooklyn, NY. We have been looking into potential RE strategies on maximizing the profits of the property through strategic renovations to the property. I have estimated the renovation costs to be around 300k. 

I wanted to hear about people's experience with getting approvals through co-op boards and what suggestions you may have that would be beneficial to note. What would be the best ways to approach a co-op with renovation plans? Also, if anyone has experience obtaining a HELOC on a co-op and what was the process like.

Thank you in advance for your input!

@Crystal Smith Hi Crystal, 

I would sign a contract with my family member, yes. But I have since found a better solution for my situation that does not include wholesaling the property. I also want to make sure I maximize my client's profits while keeping their best interest in play.

@Dominic M. This is on my no means what I intend to do, I was curious on thoughts on the matter and the legality. Based on the continuing research, wholesaling property wouldn't be the right strategy. 

@Stuart Udis I see your viewpoint and it makes sense. Thank you Stuart 

@Nicholas L. Yes yes, Thank you for insight Nicholas! 

 Hi Chris,

See my previous reply. I am interested in the legal aspect of the transaction. Do it matter that a family member is the wholesaler?  I understand the seller would be able to get top dollar for their property on the open market as wholesaling would eat into their profits. II understand the ethics.

 My curiosity is in the legality of the transaction. 

This route is seemingly self-serving but I  intend on being transparent in why they should wholesale rather than sell through an agent. Offering a streamlined process, no repairs or renovations prior to selling, no market costs or agents fees for my family member, in return I will gain invaluable experience in the market and in the field along with providing my family with wholesale services. The wholesale fee, would be capital for my next real estate investment. 

I would be leveraging my relationship with my family member to wholesale the property for experience and getting them for investment in my real estate business while my family member gets rid of a property, hassle free, while getting paid. And a buyer gets a property. 

Hi Community,

I have been thinking of some creative financing ideas and this one has been intrigued. Would it be legal to wholesale a family members home (est. 1M), and receive a fee for the wholesale services? 

Theoretically, I should be able to collect the funds from the deal, should my family member decide to go through with the deal. And they will get their payment from the buyer.  

@Nicholas L.  That makes sense. Since it is a family member and I would potentially buy the property for under market value. Have any idea about Gift tax in NY? How much below market value would a sale have to be for it to trigger a gift tax and if so what is the rate on that?