All Forum Posts by: Marty True

I've seen a few posts about the MLO where @Bill Walston is recommended as an authority on it. It'd be fantastic if could contribute to these post on here where he's being mentioned.

@Michael H. are the taxes you mentioned ($7934) based on an old (really low) assessed value or is that based on what the new taxes will be for a sale price of $900k? A lot of people overlook this in underwriting a deal... often times when there is a property that has been owned for a long time (paid off) it has a much lower assessed value than what the sales price will be and people don't realize that the taxes will be recalculated for the new (much higher) sale price.

@Matthew Olszak Ha! I love this!! See this is why I love posting in BP, not just to vent but to get perspectives and other creative solutions to our issues... Bravo Matthew! I'm totally going to try this!

@Lee S. thanks for your input here! I completely assumed that this was a guru method but now that you've confirmed that they are in fact, using this exact method in their "teachings" is validation.

@Mindy Jensen thanks for jumping in here! Being on everyone's list is not necessarily going to correct this because how can you know who "everyone" is? I get what you and @Andrew Johnson are saying and what I am trying to do is to get off the lists of the "wholesale companies" who are basically agents doubling as re-wholesalers. Then I am trying to get on as many director wholesaler lists as I can so that I am (hopefully) getting mostly direct wholesale deals.

The concept of "co-wholesaling" is also very okay but it has to be done properly and ethically... wholesalers shouldn't just add fees on top of fees - the assignment fee that is set for the property should be split between the contract holding wholesaler and the (level 1) co-wholesaler that actually brings a buyer to the deal.

Basically this whole issue is about 1 thing... GREED!

@John Thedford & @Ralph C. My company does do marketing and we do find other deals. This thread is not about other forms of getting deals, this thread is specifically about the wholesale daisy chaining issue that is happening.

I never said that without wholesale deals, I am dead in the water as an investor - I am simply contributing to the power of BiggerPockets for this specific issue.

@Clifford Roe the issue is not where the deal is coming from, the issue is that because of the daisy chaining from the original contract owner, through all the layers of agents' fees that get added - it is in fact, no longer a deal at all by the time it reaches us buyers.

To elaborate the "daisy chain" affect - the agents are not just adding their fee onto the original contract holder's price. They are adding it on top of another "re-wholesaler" so as I previously mentioned, say the original wholesaler puts it out for $100k; then an agent/wholesaler company tags it with a $10k fee; then another wholesaler gets that company's "list" and they put another $10k on top of that... so now the $100k deal is coming to me for $120k with an ARV of $150k and it needs $15-20k in rehab... not really a "wholesale" deal at this point.

Again, I could care less how many people are trying to get free money off a deal because they are licensed (ok maybe I care a little bit) - if the deal has some "meat on the bone" for us end investor/buyers to make money on (after rehab) then great! Everyone wins. 

So as an agent that puts out a list of 20 wholesale properties (other people's deals), twice a week - how about putting $1k or $2k on the deal since you are putting out so many properties? Why try and put $5k-$15k on 40 properties a week, that you will never even touch? This is what kills these deals for us end buyers!

I would just like to see wholesaling done properly and ethically so that it can be a more viable source for deal flow. These gurus are obviously becoming so believable that even the RE agents are jumping in the deep end...

@Adam Schooley thanks for the perspective. I agree with you that if the numbers ultimately work, then I am okay with the deal having a couple different fees on it however my recent experience, which is the reason for this post, is that these wholesale deals aren't getting to me and other cash buyers as actual "wholesale" by the time the multiple layer of fees are placed on them.

In regards to your observance of "agents add your commission" and "they have very slim margins" - well, I have point out here that if (we) let the "they have very slim margins" excuse be okay, then the wholesalers are going to continue to take the lowest hanging fruit because they know that they can just feed it to their massive list of [agents] that will move the properties for them. This is just enabling the wrong way to properly and legally wholesale real estate.

If wholesalers are limited to selling to their list of actual cash buyers, they are going to work a little harder to get the deep discounted off-market deals and then they can still make a nice fee while being able to move the asset into an investor with some meat left on the bone.

I don't want to beat this to death but this has been my experience with using wholesalers as a source for deal flow and I mainly wanted to see if others were experiencing the same.

@Andrew Johnson thanks for the input - I understand the logic of being on every list and then going with the one that is lowest but that simply isn't the most efficient use of my time. It would take more time than I can put into cross-referencing all the lists to see where the lower one lives.

@John Thedford don't get me started on agents and their insanely inaccurate listing info. In addition to your unlicensed brokers crusade, could you start a campaign for the "unlicensed assistants" that are putting these listings in the MLS with a gross amount of errors?

I scheduled a viewing of a townhouse this past weekend only to find that the homeowner had been blasted with thousands of offers because the listing agent made a $200k error in the asking price. What a waste of my time and my realtor's time (on a beautiful Miami Beach Saturday).

@John Thedford you mentioned that your company's listings propagates out to over 800 websites... which ones because I've never gotten a single deal lead from your listings. I'm in aggressive acquisition mode so if there's 800 websites that are relevant to great investor deals in South Florida that I am missing, PLEASE point me to the light!!

@Pratik P. thanks for your reply and that's pretty much what I have done at this point. I have unsubscribed from all the lists where I know the agents/companies were simply re-marketing other people's deals and adding unwarranted fees. I am only accepting deals from a couple wholesalers that I know are the actual contract holder.