All Forum Posts by: Joseph Hernandez

If you purchased a 1,300 sq. foot SFR that needed cosmetic repairs, how much $$$ below FMV would you pay? Also, if you really needed to flip a property, would you ever pay FMV? Thanks!

Hi Chris. I live in LA. The median SFR value is about 750k. I was told wholesale fee is around 10% of home value. I don't think sellers will be happy about this fee. If you targeted LA, how much is the max that you would you charge?

I don't want to do a double close because not only is it more costly, I was told that since I technically owned the house for about one minute, I would have to pay capital gains taxes. Is that true? Thanks Chris.

Is the reason you said to hire a lawyer instead of using sample assignment of assignment because every state has their own rules and regulations? Also, a wholesaler should insert additional clauses that are not stated in a sample contract to protect themselves, correct? Thanks David. 

Hello. Which purchase agreement do wholesalers use with the end buyer investor? If there is more than one type, please let me know. Thanks so much!

Helly everyone. In California, can a wholesaler use a blind HUD-1 with the end buyer utilizing a mortgage loan? If not, how can I prevent the buyer from seeing my wholesale fee ( I don't want to do a double close). Thanks!

Hi. Can anyone refer me to an investor friendly title company that will do a blind HUD-1 in California? Thanks in advance.

Thanks Chris for your reply. I don't understand why HML's won't accept equity in the subject property. The purpose of equity or down payment is to lessen risk in case the investor goes south on the deal. So, what's the difference if it's cash for down payment or equity? I've seen ads from HML's offering 100% LTV, 100% for rehab and 100% closing costs.

Some investors tend to forget that it's the wholesaler is the one that paid for advertising (which is not cheap), negotiated wholesale price with the seller and helped the seller with various tasks. 

You're not the HML, so it doesn't matter what you're requirements are. The bottom line is that it varies from lender to lender.

Hello everyone, lets assume a hard money lender requires a 20% down payment for a fix n flip. if I purchase a SFR directly from a seller in foreclosure for 20% under market value, can I use the equity from the subject property in Lieu of a down payment for a hard money loan?