All Forum Posts by: Jose Falconett

@Jonathan Twombly What do I have to watch out for when agreeing to cover these defaulted payments that made them want to sell in the first place? 

I worry that it may be in a tax or mortgage foreclosure proceeding affecting my claim to buy the property in the first place.

Like someone holding a tax lien on it, pre-foreclosure, foreclosure going through the judicial/nonjudicial process.

By the way you asked the question it sounds like you might not be familiar with running numbers and investing in general and might be getting yourself in trouble. To wholesale it you have to get a better deal on it than if you were to just flip it. You can't just interchangeably use the techniques just because. 

Now if you can't fund the deal I would suggest you wait until you have located your funding. You will need to be able to provide proof that your serious to the seller that you will fund the property.

Do not lie, you have no reason to mention you are an investor, and have a reason for your choice of financing. You went from cash to hard money loan, that's a big difference.

If I find a motivated seller say from an advertisement that wants to sell their home because they missed tax payments and mortgage payments...Do I include that the buyer of the property will be covering these costs in the purchase contract or is it just something that is commonly known and does not need be included?

Also, what are the things you have to watch out for when dealing with payments that are behind? (Tax & mortgage)

---worried about properties going through tax liens/foreclosure process

If I find a motivated seller say from an advertisement that wants to sell their home because they missed tax payments and mortgage payments...Do I include that the buyer of the property will be covering these costs in the purchase contract or is it just something that is commonly known and does not need be included?

Also, what are the things you have to watch out for when dealing with payments that are behind? (Tax & mortgage)

---worried about tax liens and a property being in foreclosure process

I have tried looking all over biggerpockets but most people are only looking to find out how much their wholesale profit should be. In my opinion, a wholesalers profit should be determined last in the MAO formula when concluding if a deal is worthy.

However, I want to know how much profit margin a wholesaler should typically leave an end investor buyer?

Is it normal for a wholesaler to only leave this 30% difference for the Investor buyer or should wholesalers leave more.

Is the difference sufficient enough deriving from the Maximum allowable offer for the end buyer?

I understand the 70% multiplier differs between areas but that doesn't address if the percentage is enough!

Example: 100k ARV For simplicity the example property is owned free & clear.

20k Rehab

____ Wholesale profit

(70% x ARV) - REHAB - wholesaler profit = Max offer

(70% x 100k) - 20k- 10k= 40k

Again is it ok to flip to end buyer at 40K in this example or is it cutting it to thin?

I have tried looking all over biggerpockets but most people are only looking to find out how much their wholesale profit should be. In my opinion, a wholesalers profit should be determined last in the MAO formula when concluding if a deal is worthy.

However, I want to know how much profit margin a wholesaler should typically leave an end investor buyer?

     Is it normal for a wholesaler to only leave this 30% difference for the Investor buyer or should wholesalers leave more. 

Is the difference sufficient enough deriving from the Maximum allowable offer for the end buyer?

I understand the 70% multiplier differs between areas but that doesn't address if the percentage is enough!

Example:    100k ARV                              For simplicity the example property is owned free & clear.

                     20k   Rehab

                     ____  Wholesale profit 

 (70% x ARV) - REHAB - wholesaler profit = Max offer

(70% x 100k) - 20k- 10k= 40k

Again is it ok to flip to end buyer at 40K in this example or is it cutting it to thin?

@Ben Owens do you have the ability to purchase properties all cash?

@J Scott I am reading your book. I noticed that the cost doesnt cover size. Say a ordinary vinyl window cost $150, how much would a double sized bedroom window cost...double?

record a memorandum at thee courrt house clouding  the title and they will have a problem buying or selling the property without dealing with you first

being able to evaluate a deal that you are looking for is one of them. Understanding why you need to have things a certain way. Understanding that you are not looking for pretty retail deals. One who is consistent in responding to you.