All Forum Posts by: Maurice Smith

@Eric James That’s really the point of Double-closing (using transactional funding). The wholesaler is no longer assigning, rather performing in the A-B contract. Then, normally later on in the day (for example) the end buyer will perform on the B-C contract. During closing the transactional funding entity receives their money back, plus 1-2% and the wholesaler would retain the remainder of the proceeds. In this scenario, the title company/closing attorney is just dealing with two sales. One is not marketing property they don’t own.

As far as identifying the end buyer, if one takes the time and due-diligence of being advised by an attorney on the legal methods of marketing their equitable interest in the property (contract) in their respective state they should be good to go. Further, by actually closing on the property, I have been advised that it should mitigate any arguments of brokering, because one is now selling a property they own.

Recognizing every state is different, one should always invest money and time in legal counsel. As for Illinois, I believe their law requires a RE license if one does more than one assignment per year.

All things considered, I’d actually advocate for a wholesaler getting his or her license as it opens up many options to serve a seller. If you look at the property and it’s marketable in its current condition, a listing would get the client the most and one could go that direction; however, if it’s not marketable or they don’t have the time to wait, then perhaps a cash purchase from an investor may be a better option.

Just my two cents…Thanks for sharing perspectives from the Lone Star State.

@Jesse LeBlanc

Hey Jesse I think I caught one of your presentations with Dustin at the local REIA. Good to know you provide this service too.

@Robert Williams

Robert how are you? Check into transactional funding. There are many companies, hard money lenders and others that lend out private capital for a quick short term loan to cover your 1st closing (24-48hrs). They will ensure all your contracts are in order, A-B and B-C, plus escrow, then they’ll wire the funds for the transaction. Normally they charge anywhere from 1-2%. This is a good way to close, as you actually close on the property, then quickly resale to the end buyer. The major con is this tax implications (much higher), but you are closing.

@Luis Serrano I get it, due-diligence is important to protect their investment. I hope you can get it worked out. If the seller wants out, he might have to get involved one last time to make it work. If he is motivated, he may come around.

@Luis Serrano Understood. Family situations can get messy, that’s why domestic calls are some of most dangerous. I digress...

Not sure if you could get a cash buyer that would buy sight-unseen, probably not for L.I., but I don’t know. Does the contract price leave enough for a heavy rehab? Maybe you can find someone with the risk tolerance.

@Luis Serrano

I’ve heard of some doing “Cash for Keys.” Generally, I believe the landlord also has the right to inspect his/her property. I know they do in the states I’m in anyway. Perhaps the seller can arrange an inspection of the property with reasonable notice. This would allow you to walk the property, get pictures, etc. at that time. If virtual, have a service be there at the time to perform the inspection. There are a few services that provide inspection packages (pics/video) for landlords, inspect rehabs, and more for a reasonable price.

@Mary El Ok understood. Well whenever you get a contract; if you decide to go that route, feel free to message me. Depending on where it is I know some people you can shop it to. They may buy it. Everyone is looking for inventory right now, so you can likely get your 1K back plus some.

I have watched Jerry too, but for any of these gurus that ask for money or pitch services, I chew whatever meat there is and spit the bones out (e.g., anything that costs money). I’m not against investing in my business, but I am super careful about where is spend it.

Regarding, bringing in some extra revenue for finding deals, you could bird-dog for a fee, or as you are going about your search for properties you want to hold, you could pass along the ones that you don’t want, that may be a good flip for a referral fee. If you have the time, of course.

@Mary El no judgement at all but I am curious; you said you weren’t looking to get into wholesaling. What are you trying to do? Additionally, what market are you looking for deals in NC?

@Elizabeth Beard

We use them, but you have to be sure the ad links back to a reputable website that aligns with your Facebook page and ensure you select the special category “housing” which they want you to use to comply with fair housing guidelines. If you have questions, you could schedule a meeting with a FB Ad specialist.

@Hector Castro

One other thing. You can attend the monthly main meetings for free and there are plenty of free networking and educational presentations, so that's great for someone just getting involved with REI.