All Forum Posts by: Patrick Henderson

Sounds like it could be a deal. FYI there are serial renters out there very informed on tenant laws even more so then many landlords. Renting can be hard on the soul. Think about it would you be willing to kick someone out on Christmas eve.

There are agents who specialize in REO'sFind them and use their connections. If you get in their favor, there is a 2/3 day grace period before it is listed and you could have it under before the actual listing, just be sure of your numbers everything will work. Be aware that if you don't perform you have lost that agent for life as a business partner.

I thought I would chime in on This Wholesaling subject here.

1 I have done many double closings, it is very common in this industry. don't sweat it, just do it.

2 When I wholesale I do not Reveal my obligations to the seller on to my rehab buyer. And, they don't care about my profits as long as their numbers ad up. Also, Kudos to Mary By saying don't get greedy. And those same buyers will come running every time you put one up for sale. Remember, They are doing all the work they deserve to make more than you.

3 I don't use Land Trusts in a wholesale deal, there is no reason that is not what they're for. In my opinion.

I've been through all this and I can tell that people are over analyzing and I totally understand. Been there done that. Think, do you honestly care whether someone thinks you made too much or too little an a deal? I personally don't because I have been honest and ethical through the whole process. If it was good for them, they will be calling and waiting anxiously for your next deal to come.

Lets be honest and I'm not saying anything that you don't know already. If we are going grow in life, business or relationships, we cannot do it without leaving our comfort zone. It's just a fact of life.

Get up, get stated and take action. Action is the key to gates of growth.

Mat, First determine what you want out of this business. If you buy a duplex, assuming you can afford it in your area. Probably all your money is used to do this. what happens if you lose your job and your tenant moves out or can't pay. Do you have the money to evict them if they don't go? just so you know. many people know tenant law in their state better than the landlords, especially new landlords. That puts a lot pressure on you if things go bad. And are you capable of throwing someone out in the cold with no place to go. It's very tough to do. I'm not saying you would be a bad person for doing it, you have to survive as well.

Although I've heard a lot people bash gurus of real estate on this site. there are many teachers out there who are reputable. I personally spent some where around $40,000 to $50,000 learning from other people. Not all of it was good, some nothing more than rehash they learned from someone else without actually doing it themselves. But there is good education out there. That education is worth a lot more than a duplex in my opinion. And, a better place to start.

One recommendation I have for you is to first get your head straight on some issues. This is as cheap as gets. Buy and read this book. Rich Dad Poor Dad by Robert kiyosaki. There are many more but this is a good start if you haven't read it already. It's more about perspective and attitude than Real Estate.

A CMA is "comparative market analysis" ie. Comps. Shouldn't cost more than $50 some will do it for free. But check it yourself to be sure where the comps are coming from as in distance date and quality of build general location and surrounding, crime and so on.

I believe I have some great information to share on this site based on experience, education and trial and error. I want to share it and I will, either here or somewhere else. Those of us who have good information to share know that poor or uninformed information is damaging to your dreams of making a better life for you and your family. This site, I hope, is here to motivate you to take action. No one can really be helped until they take action. Don't let and dreams and aspirations be stolen by bad information or negativity. Get up and get started, NOW!

One last thing for those less informed on the subject of wholesaling. Every wholesaler must purchase every property he or she wholesales. There are closing costs. And, he or she may have to borrow that money which ads to their costs and risks.

To compare a Real Estate agent to an investor who wholesales when it's in their best interest is at best ludicrous. Most agents, my colleagues and I have dealt with, and this is from my personal experience, only, put the house on the MLS and nothing else. And they get 6 or 7 percent for this. They pretty much know what to list it for through the system and not experience and they are legally bound to the clients best interest. which is to keep them honest. The first thing they do is to tell the seller what needs to be done to get the house in shape to sell. Which cost the agent nothing and seller may or may not have the money to hire someone or talent to do it themselves. And, could make it even harder to sell.

Don't get me wrong there are some Damn fine agents out there. But I guarantee you they paid their dues and learned their business and they never stop Learning.

Most people on this site most likely already know more than the average agent. So many people get into this business and do almost nothing.

Get up, get motivated and get started. You will be surprise yourself if you just take action.

Wayne, I don't think most wholesalers do anything unethical but I don't know most wholesalers, the ones I do know are ethical. Apparently wholesaling leaves a bad taste in some peoples mouths. I'm not trying to be argumentative, I just don't care for negative statements especially when the statements generalizations, I don't want to bash anyone or their business model. Just so you know. I have known people even in my family I would not teach what I know about this business because I know they are dishonest. Those kinds of people will be dishonest in any industry. Unfortunately they exist in our world.

Let me clarify a bit. I do wholesales but it 's not the only thing I do. I'm acquiring a property for rehab now. Apparently you have seen some bad experiences for some but you're assuming a little on the conversation Jon. I've never done anything unethical or illegal.

When a Real Estate agent doesn't perform he leaves the seller without the $10/$100 or whatever amount of earnest money and hopefully he has performed diligently. The majority of Agents simply put it on the MLS And that's fine. I have no problem with that. The money he makes is income. The money I make is capitol gains, no income or social security tax, because I am making an investment. The Agent does not have to fund the deal, I do. My risk is far greater than his, I deserve options. It has nothing to do circumventing laws or cheating someone who has a license. Not to mention that I personally spent much more time and money learning and crafting my business than an Agent.

I think it would be wrong to classify me or anyone who does a wholesale deal as deceitful in any way, simply for using this method as an exit strategy. I'm sure there are dishonest people in every industry.

I personally have never failed to buy a house that I've made an offer on, that was accepted of course. The buying process is the same as buying it for rehab and that's my intent. If I can pass it on to someone who can do the rehab cheaper or more efficiently and I make a little on it, great. I also spend more than the average Agent on marketing to acquire my properties. It's no different than buying a broke down car that the owner doesn't know to do with it. It's my training, experience and expertise that makes the real difference. Jon I take from post that you are a licensed Real Estate Agent.

BTW I don't mean any of this to be condescending in any way.

There seems to be a lot of confusion on this topic here. First off all contracts by definition are assignable unless specifically stated in the contract that it is not assignable. So, if you have taken a house under contract with a standard purchase and sell agreement. You can buy it or assign it. In my experience the seller could not care less how you get this accomplished as long as you get it done. If you assign it there are no closing costs for you. If you wholesale it you will need transactional funding, you cannot fund your deal with your buyers money since the last recession, this typically is about 5% of the borrowed amount but there are restrictions to this so do your research. Either way you are fulfilling your contract with the seller.

There is no need to add anything to a contract the purchase price is all that you need. Of course your buyer will want to know what repairs are needed to arrive at a reasonable estimate of repairs and the price they can pay. It does help if you have done a few rehabs before so you can accurately determine the cost of repairs and be able to tell your what those costs will be.

Ten dollars is fine, there needs to be an exchange of something to make it a legal contract. negotiations with your buyer are between you and your buyer, it is no ones business but yours and your buyer. Many times the house is vacant so very few issues.

Sorry, the quote was "if you don't ask, you don't know"