All Forum Posts by: Jesse LeBlanc

@Lynnette E. on a deed, you are either on it or you're not.  There aren't %'s.  Each person on the deed merely represents an owner, and to sell a property ALL names on the deed must "equally" sign in order to sell.

IF a Business was buying/selling something, then internally on the company docs, there could be a % of ownership of the COMPANY.  Which means when something was bought/sold then that % is owed to/from that owner.

The only other time i'm aware of a % being issued is from a Will.  Then when a house is sold, the proceeds of that house could be split in certain %'s based on the will.  But again, not ownership of the house.  You own it, or you own it with 1 other person or you have an entire family of 8 names on the deed and you'd then be 1/8th owner.

@Dwayne Gilbert don't be the closing company, you don't need to worry which line item you will be on.  Just make sure what you need is clearly explained and why, they are fully experienced and do it all the time and will know NP.   Long story short, for them they'll treat it just like a Lien owed on the house.  The buyer doesn't give a **** what liens or loans etc the seller has, they only care about what their price of the house is not how much money the seller is left with (their proceeds).  So don't try to understand everything and get stressed out for nothing.   I PROMISE YOU, it's not worth the stress and let the Closing company (Title or Attorney) take care of that for you and focus on helping out your seller and buyer. :)

And yes, you can call it "Relocation Payback" "Relocation Expense".  doesn't matter to anyone as long as the closing company has other documentation to explain what and why if they were ever audited, but thats on them to determine, not you to worry about.

Simple ——> you allow your seller to go direct to buyer and in an email and in writing you and the seller agree to your fee and have the closing company add your fee as a line item on the seller side.   Call it something different from your name or company name if the end buyers underwriter already saw the prior contract.     You’re basically acting like you have a lien or some form of amount owed, it could be “management fee”, “consulting by DG” doesn’t matter what the name is, what matters is the amount and that you and the seller and closing company are all on the same page so you get paid, seller is happy and buyer can close.

other option is to assign your contract to the end buyer BUT the underwriter still most likely won’t like it so go back to option 1.

DONE.   I see it happen regularly, nothing to worry about.  Just another good experience under your belt @Dwayne Gilbert

@Dwayne Gilbert understood.  So if you don't mind losing a little bit of your profits from buying the home yourself then holding it until the end buyer for sure can close, then it's not a bad way to control deals and still make a profit. :)

We buy all the time then relist the properties, which is essentially what you'd be doing because you won't actually be doing a "Double Close" since your purchase won't happen the same day your end buyer can close.  You'll end up buying it, then letting the lender and underwriter do their thing and confirming you're then on the deed at the time you went under contract with their client (might have to sign a new purchase and sale agreement with the end buyer AFTER your closing).  Make sure you have insurance and make sure you have other exit strategies incase something happens to his loan last second and you weren't only holding out for him.  ALWAYS have more exit strategies or DON'T do the deal.

meanwhile, the way's I first mentioned will get you to the closing table sooner and you'd make more $ too.

So based on on your last response, you'd be looking for either a hard money lender or private money lender to cover the cost of your purchase.  Then you have holding costs, maybe getting utilities on, insurance and property taxes for the short time.

There are many within this group of course, i'm sure some will chime in or do a quick search for "HML" or "Hard Money Lender", "Investor Friendly Lender". The latter might turn up more lenders for rentals.

What state is the property in?

Is the end buyer a Conventional? If so, that will often be a problem on a double close because the underwriter will see that you aren't legally the owner yet or on the Deed. You can then allow your seller to go direct and you can be a line item on the seller HUD with your fee, which is almost the same as an assignment, however it removes your name/company and a contract from the mix which is what the underwriter won't want to see.

Otherwise, if you're just selling to an investor, then most of the investor loans don't care too much about double closing and you not being on the deed at the time UNLESS the investor again is buying conventional and not an investor friendly lender.

Some closing companies may not allow a double close and use pass through funding (your end buyers funds to pay for your purchase, the AB side).  At that time, you'd have to come out of pocket to fund the AB side yourself or use a Transacational Lender to cover the AB side, thus allowing the closing company to handle both files, then record the AB side first before recording the BC side.  Then everything should be smooth there.

The BEST strategy is to have solid buyers already.  Know what their criteria is, then go find properties that fit their criteria.  Then your only job is to discuss with the seller a price that is lower than what your buyer wants.  

Then everything is transparent with your seller, you and your end buyer.

What also happens is that so many wholesalers don't have buyers, they assume they'll get something sold, they get a property under contract and NEVER have the intentions of following through and keeping their word with the seller, then go out marketing the property hoping to find a buyer.   So if you already have a buyer ready, you'll generally never have a problem.

and I 100% agree with @Jay Hinrichs, just adding the above statements to the rest of the comments.

@Ashley Robinson IGNORE everything except what your buyers will buy it at. It DOES NOT matter what anyone else on here tells you, because at the end of the day YOUR BUYER will be the final decision maker on a deal you bring them. And with so many different buyers out there and they each have their own criteria and one person flips, the next person is STR (Airbnb with different buy criteria) then you have HedgeFunds with wildly different buy criteria including OVERPAYING, but they have goals and metrics to meet that won't be like your typical investor.

Meaning find SOLID buyers to sell deals to.  Find out what their criteria is as far as bed/bath, sqft, year, area etc.  Then locate those for them.  Provide them with walkthrough pictures and or bring them to the house.  From there, they can tell you what they would pay for the house.  

From there, your ONLY job is to go to the seller and get it below that price.  And you can almost always talk the seller up a tad too if things are tight.  Then you keep the spread.  Your seller will be happy, your buyer will be happy and you will have a nice spread and a new relationship with a buyer who will respect and appreciate you.  Then you just rinse and repeat while finding other buyers.

As  wholesaler, especially one who has not had the experience in flipping, rehabbing, rentals etc, DON'T BOTHER TRYING TO LEARN in order to make a deal happen.  Overtime you will naturally learn from your buyers and also learn the market better.  Soon you won't even have to get your buyers price first, you'll have enough experience with each buyer to know what they will probably pay, then you can get things under contract before informing them, thus having more confidence AND never pissing off sellers by having to backout and not perform and not keeping your word to them.

Yes, you can use the same purchase and sale agreement, you'll just be the Buyer on the AB side then the Seller on the BC side.  

Other option is to use an assignment of contract agreement, unless you are specifically wanting to double close.  Assigning will save you $, but all parties will have to be transparent about the entire process including who the actual buyer/seller is and what fee you would be making.

I’m Assuming you mean non refundable Earnest Money?  If so, then if the contract you’re signing has zero day due diligence, and there are no title issues delaying a closing, then yes, that’s very normal for an off market deal from a wholesale company or wholesaler in general.

Double close on wholesale transactions are very common. The other option a wholesaler has is to assign their contract to the end buyer vs a double close.

@Stacey Bochenski Due to an assignment, then the full amount DUE at closing won't be what is recorded.  Just the Purchase price since the assignment is merely a line items.  

MOST LIKELY there is work that needs to be done to a property anyway and there will be sufficient comps for the appraiser to pull from.  Since everything is being held as rentals, then other than "as-is" or deals that sold before rehab, neither of those the Appraiser should be pulling anyway without knowing the condition of those properties.

I'm used to doing a Rate and Term refi just after the paint is drying on my rehabs before I keep as rentals and generally there is never a problem due to the other amount of rehabbed comps. BUT there is also nothing wrong with merely providing the appraiser with your comps ahead of time just DON'T make them feel like they have to use them or get snippy with them if they didn't use them. HOWEVER I have found that if I was worried about that, I have oftentimes shared my findings but didn't give the ARV, I merely suggested some like condition properties and usually I have found at least one of them on their appraisal later.

If you want though, you can always discuss with the wholesaler and edit the original purchase price if it were an assignment.  Then let there be a seller credit of X amount to the wholesaler that way the purchase price shows the higher amount.  But again, if there is rehab being done, then it doesn't really mean anything anymore.  Even for Taxes, your basis will be what you purchased it for including all of your costs.