All Forum Posts by: Joseph Hernandez

Maybe most wholesalers are lazy to get licensed. They know it's not required, so why bother? I'm licensed, but I can't do it the way you mentioned because I will work preforeclosures, and time is of the essence. BTY, how much is the minimum profit you will accept on a flip? 

@JoeS. As a newbie, I haven't a clue how much is the average wholesaling fee. I been watching YT videos from a wholesaler guy named Pace Molby. His students often post they are charging 20k-50k for each deal. They also mentioned that end buying investors are jealous of wholesalers. I've flipped 7 houses, so I can understand your point of view. I'm starting to believe that because you are not the first person to tell me that 30k is too much. However, although I never completed a transaction, I spent three months trying to close a homeowner in pre-foreclosure and It was like finding a needle in a haystack. It's not easy. Moreover, these people are in denial. Their head is stuck in the sand. I spent a lot of time and money and ended up with nothing. So maybe that's why wholesalers charge so much. There's always two sides to every story. My plan is to find out how much of a wholesaling fee is reasonable, and charge that amount.

@Chris Seveney. You are correct. I called my attorney and he told me that the seller could sue me, claiming it was a predatory transaction. He said a judge may think I was taking advantage of a distressed homeowner that was going through foreclosure. I may lower my assignment fee to 10k. I guess other wholesalers that charge 30k+ are taking chances of getting sued. 

@Chris Seveney. My assignment fee will also be on the assignment contract. The seller or buyer can sue my for predatory lending because my assignment fee is too high? Also, with a double close, if I don't have the funds to close the AB transaction, is the deal dead? I read a blog that said the end buyer can fund the AB transaction. If that happens, he will know my fee, correct? thanks Chris.

Hello. I'm a newbie wholesaler. I will be targeting pre-foreclosures. If my assignment fee is 30k, how can I prevent the end buyer from disclosing my assignment fee to the seller? I think it's very difficult, if not impossible.  

It was a general question, not a deal I have assigned. I never did a wholesale deal but I will start soon. Mainly, I just want to know the minimum profit, expressed in dollars that cash buyers want. When you say "30% profit" do you mean your purchase price of the property minus all expenses? Thanks Mason.

Thanks Chris. I appreciate it. 

Cash buyers: how much is the minimum amount (gross profit) that you want if you purchase a 1,400 sq foot SFR, cosmetic fixer? Thanks!

Hello. I'm reading two different methods of calculating max offer. Max offer = ARV X 70% - rehab costs. Also,

Max Offer = ARV – Cost of Repairs – Buyer’s Profit – Wholesale Fee – Other Costs

Which is correct? why are there two different formulas? The second formula seems too high for the seller. Other costs can include closing costs, holding costs and if the seller is in foreclosure, he needs his arrears paid and most likely another 10k to move out.

Hello. 
I'm a newbie wholesaler. My market is LA and prices are high and rates are relatively high. Is it feasible to do a sub to in this market? If so, wouldn't an assignment be more profitable? TIA.