All Forum Posts by: Juan Pernas

@Scott Steffek Great points Scott. I feel like your perspective is very well aligned with mine. The thing about the inflated ARV's is a whole 'nother (true) story. I think these things will remain part of the business and we won't ever be able to get rid of these types of people. The best we can do is no longer do business with them and build partnerships with the more honest wholesalers with at least reasonably accurate ballpark numbers.

@David Zheng 

@Paul Amegatcher 

Hey guys,

I appreciate the insight. I do not have a problem with the buying at a low price, my original post was more so inspired by hearing local wholesalers saying they are primarily interested in helping and doing the sellers a favor. I just wanted to see what others thought about this. Not sure if my original post came off as a little incomplete or hollow in making my point.

I believe it's a service to a certain extent, due to removing the burden of a potential unwanted property. But the way these people were making it seem, it's like they believe it's a blessing for the seller.

Trust me, I would aim for the lowball as well.. but perhaps I have less shame in my game. :)

@Account Closed save the condescending tone. I agree it is a business, which I pointed out in my post. I didn't say you should buy top dollar. The end buyer you assign it to does not buy at retail.

I am saying many wholesalers justify their spreads by saying they are doing a favor and service to the seller. It's more respectable to hear them say it is a business and the satisfaction of the seller is second to their profits, in my opinion. Which I have nothing against.

This forum actually does entail discussion as to what is considered an ethical or unethical practice, by the way.

More great posts from you regarding wholesaling and it's legalities, John.

The other day you clarified for me the idea of JV'ing among other things in regards to wholesaling. I'm licensed in the state of FL, but the information concerning wholesaling was next to none in the course.

I always advise wholesalers in my area, especially newbies, about what it is exactly they are doing. It seems the gurus and YouTubers have made the sale of real property and such something to be taken casually and lightly when in fact they are not only more than likely violating F.S.475, but also tying up a sellers property when they are completely unqualified to broker the deal. They are unqualified not only in terms of licensing, but also in terms of skill. They also, a lot of times, incorrectly evaluate the property and waste the end buyers' time. 

When you have a seller with a dilapidated house that is worth 80k as is, and you're offering them 40k, are you really doing them a favor? I understand the idea of unloading their burden.. but realistically they are being lowballed and stripped of their equity, while perhaps being somewhat unknowing to the true value of their property. It seems to me a lot of wholesalers are in somewhat of denial.

Personally, I have nothing against wholesaling and I would likely do an assignment of contract myself if the circumstance calls for it. But I feel it should be okay for wholesalers to admit to themselves and others that this is a business and doing others a service is second to their bottom line.. 

This post is of course, a generalization!

Am I alone on this sentiment?

If you are the personal guarantor on that line, it will remain tethered to your personal credit. A business line of credit (business credit is more difficult and tricky to build) is what will not require your personal guarantee and will not be attached to the owner.

How many units in total that provide you income. SFR being 1 door, 4-plex being 4 doors and so on.

Perhaps my best bet would be it's generally not a preferable area. It really depends on the specific details of the property. Has it been bought & sold at a loss primarily?

Jason Palmer I agree. Also, OP, I wouldn't have disclosed that I'm a newbie to him. It's not a good position from a negotiation standpoint. With an ARV of 55k, 70% of ARV is: 38.5k - repairs (seems like extensive damage) the investor may top out around 12-18k in terms of how much he's willing to pay. I'd try to negotiate the seller down a bit, but also present my offer in a contract. Personally I never let the seller draft his own contract in the transaction, I always prefer for the buyer to bring his own contract with the offer.

Combined net worths somewhere in the neighborhood of $7B, clearly.