All Forum Posts by: Lleyton Verheul

@Christopher Ransom

Virtual wholesaling is something that is done. It isn't successful for everyone but it's not a problem for OP to try.

Please try to be less negative with all your posts. It's astonishing to me that you put down wholesalers in the wholesaling questions category on a RE investing forum.

@Bart Mastin

Honestly, you could sue for $500-$1,500 per communication if you are on the do not call registry. Plenty of the "public information" sites will give phone numbers of owners but have "(DNC)" next to them. I would imagine the "wholesalers" bothering you are just disregarding that to try and get more sellers. It is not right.

Hey @Nicholas Sheetz

You and I are in very similar boats. My partner and I are both 19 and are doing wholesaling together until we can raise enough capital to start our property portfolio. As a disclaimer, we have not done a deal yet. We are starting to market for buyers this week as we have been doing all of the preparation steps over the last 2 months.

To answer your question, I think it is completely up to you on starting an LLC. My partner and I did start an LLC and our deals/income will all go into our business. On our purchase agreements and reassignment contracts, we will be signing our names as co-founder or managing partner of our LLC. Our checks from the title company after we close will all be addressed to our LLC. All of this can be done without an LLC but we created one right away for a few reasons. We wanted to have an LLC because it's cool. We will need one in the future to buy our houses under. We want to build a relationship with our bank ASAP for future loans if needed. We want to be 50/50 partners in a way that is formal and in writing.

I do fully trust my partner that no disputes would happen down the road but if he had a deal or property written with his personal name on it, he could technically run off with the profit. Having a joint LLC can hedge against that risk.

Having an LLC will require a few more steps like setting up a business bank account, filing a form 2650 (S-Corp election form for tax purposes), and getting an EIN number. This are manageable steps but still something to consider.

I do recommend getting an LLC and I am happy to help you out with other questions as I am still wrapping up the process. It really is cool and a great motivator when you've got the business certificate framed in your bedroom 😎

Hello all!

I am wondering what most wholesalers do about closing costs. I've struggled to find good information about this. I am defining closing costs as the money that the title company charges. 

Does the end buyer pay for the title company too? Is this amount written in the purchase agreement or reassignment contract?

Does payment for the title company come out of the wholesaler's assignment fee? Is this a clause in the reassignment contract?

I am having trouble figuring out where all the money goes during closing so any information is greatly appreciated.

Hello!

I had some questions about the role of a title company during a wholesale deal. How does the title company get paid? I believe that is what closing costs are but does that mean the end buyer pays the title company separately or something? Does the title company reach out to the end buyer for all the funds required for the deal? If not, is the end buyer expected to wire his/her money to the title company? What happens if the title company isn't receiving the money from the end buyer even though all forms are signed?

Thank you so much in advance! I am going through a little bit of analysis paralysis but I just want to be sure about where every dollar is going in a wholesale deal.

@Andrew Carlson

Exactly what I was thinking

Hello all!

I am a newbie wholesaler about an hour south of Tampa in Sarasota, FL. My business partner and I are getting all of our ducks in a row before our first deal. I was wondering if we will need a title company for ourselves. We do not plan to double close but to reassign contracts to our end buyer. Based on what I could research, I believe the end buyer may need a title company. Would they be responsible for that themselves or is there an expectation that we would set that up?

Any advice on this or related wholesaling topics is greatly appreciated! I am also open to mentorship or getting to know any BP members in the area. Thank you all!!!